Invest in Investors...

03/10/2006 12:00 am EST

Focus:

Louis Navellier

Editor, Blue Chip Growth and Emerging Growth

"We’re now in the midst of a great era for growth stocks," says Louis Navellier, an advisor with the enviable #1 position for 20-year performance in the Hulbert rankings.. Here, he looks at four stocks that benefit from increased trading and investing.

"The economic environment is especially positive right now and investor optimism is rising. Now that interest rates are rising, money is fleeing interest-rate-sensitive value stocks and migrating into growth stocks. We’re in a consumer-driven economy that has started 2006 much more positively than economists had expected. Economists now forecast that the first quarter will be the strongest quarter since 2003. That’s why money is pouring into the market and chasing growth stocks, which fare the best when investors are optimistic.

"NASDAQ Stock Market (NDAQ NASDAQ) is a floorless market that trades approximately 3,300 companies electronically. As trading volume continues to rise, it will likely help to boost the company’s earnings further in the upcoming months. 370% compared with the same quarter one year earlier. JLG just boosted its dividend, and the stock just split 2-for-1 on March 27. The stock is a great buy.

"Greenhill & Company (GHL NYSE) is an investment bank that specializes in mergers and acquisitions, and corporate restructurings. Its merchant bank makes private equity investments typically in the $10 million to $75 million range. GHL was founded in 1996 by former Morgan Stanley president Robert Greenhill. It is riding the big boom in private equity. The latest quarterly revenue rose over 60%, and its earnings-per-share rose over 81% over last year. Greenhill has fat operating margins and very strong cash flow. The stock has been rallying steadily and is a great buy.

"Investment Technology Group (ITG NYSE) was spun off from the Jefferies Group in 1999. Its provides automated equity trading services to institutional investors. More than 500 global institutional clients use its POSIT system to trade shares confidentially and stock portfolios among themselves. The company also offers client site trading products and electronic trading desk services. To augment its services, ITG is acquiring Plexus Group, which provides trading consulting services. The stock should benefit from rising trading volume and is a great buy.

"TradeStation Group (TRAD NASDAQ) uses its proprietary electronic trading platform to offer commission-based, direct-access online brokerage services. This platform helps investors develop custom trading strategies and executes orders for equities and futures. It also operates an online trading strategy community site. Co-founders and brothers William and Ralph Cruz collectively control almost 50% of the outstanding stock. The latest quarterly earnings doubled to $7.3 million, or 16 cents per share. Sales rose 35.1% to $27.3 million. TradeStation is benefiting from surging trading volume on Wall Street. The stock is a great buy."

Related Articles on