Thursday, April 26, 2007

KOP - Koppers Holdings

Koppers is a global integrated producer of carbon compounds and treated wood products.

The company intends to release its first quarter 2007 financial results before the opening of the markets on Thursday, May 3, 2007.

Koppers is expected to grow earnings to 1.98 next year which gives it a forward P/E of 14.25. Earnings growth is expected to be 14.5% for the next year.

Technically the chart broke out from a 4 month consolidation on big volume (due to a mention on Jim Cramer’s Mad Money show on April 24, where he called Koppers "a subtle way" to play the railroad boom). Both TSV & Money Stream are very bullish.

A stop could be place just under the 50 day Moving Average.


Wednesday, April 18, 2007

IOM - Iomega Corp

Iomega Corporation is a global leader in data storage and protection. They will release earnings next week on April 26.

The company is expected to grow earnings in 2006 to 0.05c, in 2007 to 0.25c and in 2008 to 0.34c. Iomega gets back on track with the lounge of a couple of new products.

Technically, the stock trades both above the 50 and 200 MA. TSV is clearly trading up on a weekly chart. There is resistance at the $4 level.

I plan to buy half my intended position on an initial breakout above $4, and the other half if the stock pulls back close to the breakout price.

Labels: ,

Thursday, February 22, 2007

ONT - On2 Technologies Inc

On2 Technologies, a leader in video-compression software and solutions, announced yesterday that its award winning advanced video compression scheme, Truemotion VP7, is utilized by Move Network's new Move Media Services for providing broadcast quality video over the Internet.

Move Networks is pioneering a new video publishing system for major media companies and broadcasters who want to take their broadcasts online.

On2 Video codecs are widely used in the Internet, video-on-demand, VoIP, and mobile media markets. On2's software is used by such leading global companies as Adobe/Macromedia, AOL,
Skype, XM Satellite Radio, Sony, CTTNet, VitalStream, and Tencent.

On2 last quarterly revenues of 1.7m grew 226% yoy. The company is expected to loose 4c per share for the current FY (vs -0.09 the year before).

Technically, the stock is taking another attempt to break above the $1.40. Both Worden Brother's Proprietary Indicators TSV and Money Stream are showing strong buying over the past couple of months.

Because this is a speculative play and the stock trades below $2 I'm using a much wider stop than usual.


Tuesday, January 30, 2007

KV.A – KV Pharmaceutical Class A

KV markets more than 130 generic drugs including cardiovascular and anti-inflammatory treatments.

With the Democrats in control and wanting to negotiate lower drug prices for the Medicare insurance program for the elderly and therefore cover more medicines with U.S. government subsidies could be a positive for KV Pharma. On the other hand there is still the pending lawsuit from last November over alleged improper stock options backdating. With a proper stop-loss in place, I believe the reward outweighs the risk.

According to analyst estimates, KV is expected to grow earnings at 48% next year to 1.48. That leaves it with a forward P/E of 17. Needles to say that when expected growth is nearly 3 times that of the P/E there is little question that valuation is attractive.

Technically, The stock has been trading below $25 for nearly 2 years. In the past 5 months the attacks of breaking above this level have become more frequent. The shares trade both above its 50 and 200 SMA.

I'm planning to start a position once the stock moves above $25, therefore putting in a stop-buy order.


Tuesday, January 23, 2007

ROST - Ross Stores Inc

Ross Stores operates two chains of off-price retail apparel and home accessories stores, which target men and women between the ages of 25 and 54, primarily in middle income households.

In 2004 and 2005, Ross suffered from poor reporting which led to high shipping costs, low product margins and too much differences of what is on the shelves and what a physical count turns up (shrink). Last year the company invested in new software and inventory systems which should help the bottom line.

In the most recent quarter revenues increased by 10% yoy and EPS increased by 21% yoy. Earnings are expected to increase 14% next year (vs. Industry avg of 11%) while the company sells at a P/E of just 17 on 2007 earnings of 1.90. On a Price-to-sales basis, Ross is undervalued by nearly a factor of 2 (0.83 to an industry average of 1.50) and also looks cheap on a Price to Free Cash Flow (TTM) comparison of 16x for ROST vs 28 for the industry.

Technically the stock broke through a 3 year resistance at 32 on January 12 and is now retesting the resistance / support level.

I'm looking to start a position at the $ 32 level and add more at $ 30 with a stop below the 200 MA.

Labels: ,

Wednesday, December 13, 2006

AKAM - Akamai Technologies Inc.

Akamai is THE streaming media company, the one that owns the business, and with streaming media being the hottest thing going, this is the pure play. Akamai, which is Hawaiian for smart, helps companies expand their online business with streaming video without adding hardware; its EdgePlatform network of 20,000 servers in 70 countries handles the distribution of content for customers including nbc, Comedy Central, Yahoo!, Friendster and Apple Computer.

In the most recent quarter revenues increased 47% and EPS increased 71%. Earnings are expected to grow 38% next year while the company sells at a P/E of 63 based on 2006 earnings of 0.87. Not cheap, but a high-beta mover. As more and more media companies are embracing the Net with full-motion video, this is the stock to consider.

Technically, on December 7 Akamai finally broke out on high volume after a two-month consolidation and was able to hold on to these levels.

I'm planning to start 1/2 a position at these levels, adding more if the stocks comes down to test support. Stop somewhere under the 50 EMA.


Friday, December 01, 2006

RRC – Range Resources Corp

We’re seeing a rotation out of Tech, Retail & Banking stocks into Oils & Metals. RRC appeared on my screen today. On this weekly chart, you can see the breakout to a new All-time High after a one-year long consolidation. Range Resources explores, develops and acquires oil and gas properties, primarily in the Southwestern, Appalachian and Gulf Coast regions of the U.S.

USG - Usg Corp

Finally breaking out of a 5-month consolidation on huge volume. Even with a $10 stop the reward could be 5:1. Warren Buffet is a size-owner of this company as well. Usg emerged from Chapter 11 on June 20, 2006 after more than 5 years and has also gotten rid of its asbestos problem.

Labels: ,

Help support this blog with a paypal donation
free counters
Free counters