"We reiterate our bullish posture on IBM (IBM NYSE) with the shares finding
support in the 75 - 77 region for the past few weeks," says Bernie
Schaeffer, chairman and CEO of Schaeffer's Investment
Research . "While the
stock has displayed strength in a challenging
market, options players are predicting IBM will
retreat. This is seen by its steadily climbing Schaeffer's put/call open interest ratio, which stands at 1.39. This is
just a shade below the highest reading for the
past year of 1.43. Historically, such high
readings have been a leading bullish indication for IBM over the following 20 sessions. Given the technical backdrop, we
believe Big Blue should proceed higher in price
in the near term. Traders should continue to target a move to 84.80 on IBM with a stop-loss on a close below
75.50."
"We've been eyeing a short position in Qualcomm
(QCOM NASDAQ) for a while and it seems that there isn't
much time to wait before the selloff in the stock resumes," says Elliott
Gue, editor of Wall Street Winners . "There was a heavy-volume selloff after the
company announced it added a small dividend to make its shares more
attractive. Bottom line, Qualcomm is one of the last men left standing, and
we think it's coming down due to overcapacity in the sector, high multiples, and
horrible-looking technical indicators to top it off. Short QCOM at prices above
34.75. Use limit orders and be quick. Cover the short position on any move above
38.50."
"I consider gold's correction as a buying opportunity," says
Adrian Day, editor of the Global
Analyst. "The truth is that gold had moved too far too fast,
accelerating out of its orderly upmove. So a correction was
overdue, exaggerated by futures positions. Where are we now? Gold's
near-term direction will depend largely on developments regarding Iraq and the
dollar, as well as technical market factors. The move back up to $390 won't be
as swift as the decline, but over the next several weeks we expect to see gold
move back up over $370. Meanwhile, gold shares now offer good value again,
both relative to bullion and to fundamental measures. For those who are
underinvested in gold stocks, then, this is a good time to buy some of the
top-quality seniors including Newmont Mining (NEM NYSE), Harmony (HMY NYSE), Freeport (FCX NYSE), Meridian Gold (MDG NYSE), Gold Fields (GFI NYSE), and AngloGold Ltd. (AU NYSE)."
"Several intermediate-term indicators have turned negative," says
technical analyst Ralph Acampora, technical analyst with Prudential Securities. "Volume -
as seen by our 'Buying Power/Selling Pressure' indicators continue to point to a
much weaker market. Price - the well known Dorsey Wright Point and Figure
Service has confirmed that their 'Bullish Percent' indicator is flashing an
intermediate-term negative signal. And momentum - the weekly MACD Indicator of
the S&P 500 experienced a 'dead cross' last week - a sign that further
deterioration is upon us. Conclusion: the stock market is currently in a weak
spot prior to a resolution of the Iraqi situation which will most likely produce
a rally. Unfortunately, the confluence of indicators just mentioned along with a
series of support violations suggests that this weak spot could easily take the
leading market averages back to their respective October lows, if not, much
lower."
"Right now, the tech stocks that we really like are
Energizer Holdings (ENR NYSE),"
says Vahan Janjigian, editor of Special Situation
Survey and The Forbes Growth Investor . "This is a company that recently announced
they are buying the Schick shaving division of Pfizer, putting them more in
direct competition with Gillette. We like a very small company called
MTS Systems (MTSC NASDAQ). They make equipment for the automotive
industry primarily, but also for other areas. Nokia (NOK NYSE) is a stock that has recently shown up in our
screens. The stock is down quite a bit recently. Of course, it's a telecom
stocks, which is out of favor. But it's starting to do well in our rankings. One
more I'd mention is QLogic (QLGC NASDAQ),
the software company."
"Some of my best picks have been in the
bond market during the past several years," says Neil George,
editor of bygeorgenewsletter.com . "And it's not just
for income, either. Bonds from around the world consistently provide
opportunities for gains, and credit and inflation conditions are improving,
helping to make fixed-income assets more attractive to hold. Buy the
Templeton Global Income Fund (GIM NYSE), which is trading at a discount of slightly
less than 2%. It offers an attractive yield exceeding 6%. Buy it now and hold as
long as the premium remains less than 4%. I also like an Iraqi oil play.
While not announced, I think that the interests of France's Total
Fina Elf (TOT
NYSE) has been granted primary rights to develop Iraqi oil reserves."
"Nuvelo (NUVO NASDAQ), which was formerly known as Hyseq,
is creating value for its shareholders," says
John McCamant, editor of The Medical
Technology Stock Letter. "The company will focus on developing
alfimeprase for peripheral arterial occlusion and catheter occlusion.
Catheter occlusion is a large market opportunity with five million catheters put
in each year and 25% becoming occluded for a potential market of 1.25 million
patients. As of the merger date, January 31, 2003, the company had a cash
position of $53.2 million. This is projected to last through the end of 2004. We
understand that investors have become hesitant to invest in companies that have
undergone restructurings. But this new entity has over $2 per share in
cash. Plus, they have a promising therapeutic in alfimeprase. This makes the
current sub-$1 stock price a no-brainer to us. This stock is a strong buy at
current levels."
