Great traders and true value investors know that it’s not only the return function that dictat...
Briefly speaking …
04/11/2003 12:00 am EST
To qualify as a Kevin Kennedy Super Seven , an issue must meet all of the following criteria: Relative strength of 97 or; a price less than 20 or more than 50; a float of ten million shares or less; a new listing since the last buy signal; new high in the previous two weeks; a 3x previous day volume and up in price in past two weeks; and a breakout out of a base of four weeks or longer in the past two weeks. The only stock to qualify is Netflix (NFLX NASDAQ), the world's largest online subscription-based movie rental service, providing more than 1 million subscribers with access to a library of more than 13,500 DVD titles. For $19.95 a month, Netflix subscribers can rent as many DVDs as they want, with three movies out at a time, and keep them for as long as they like. DVDs are delivered directly to the subscriber's address by first-class mail.”
“Last year, Scientific Atlanta (SFA NYSE), the leader in cable TV equipment, won the Cablevision account, which is now the firm’s largest customer,” notes John Dessauer’s Investor’s World . “The firm has roughly $5 a share in cash and no significant debt, and recently bought back 8 million shares. Digital service is sweeping away analog and in just the fourth quarter, Cablevision added 136,000 new digital subscribers. The market values the stock at just $7.39 a share, net of cash. That is below book value below sales per share And the stock trades at just ten times 2003 estimates. Buy.”
“There is one new buy recommendation for April: Occidental Petroleum (OXY NYSE),” says Louis Navellier, editor of The Blue Chip Growth Letter. The stock is for conservative at prices below $32. Operating margins have more than doubled its production at minimal additional costs. Occidental's long-term goodwill with Russia has helped the company become more dominant internationally. They have a 3.5% dividend yield. I also expect that Occidental will be a big winner after the Iraq invasion. Occidental should post strong earnings for at least the next several months.”
“Gen-Probe (GPRO NASDAQ) is a global leader in rapid and cost-effective nucleic acid testing products used for the clinical diagnosis of human diseases including strep throat, pneumonia, tuberculosis, and sexually transmitted diseases,” notes Jim Oberweis, editor of The Oberweis Report . “The company partnered with Chiron to offer tests for screening of donated human blood to blood bank facilities. The company recently announced that the FDA accepted an investigational new drug application for the West Nile virus. Revenues for the most recent fourth quarter rose 33% while earnings rose 250%. The shares are appropriate for risk-oriented investors.”
“Although we expect to
see oil prices retreat to the low to mid-$20s, gas remains a different story,”
notes Adrian Day, editor of Global Analyst . “There is a genuine
shortage of natural gas for delivery in North America. Pan American Silver
(PAAS NASDAQ) reported another loss, largely the result of further
write-downs at its main mine of Quiruvilca. Although the company has cut costs
dramatically, the low prices of silver and, increasingly more important, zinc.
Apart from Quiruvilca, however, existing operations are positive, with further
projects in the pipeline. Despite on-going losses, Pan American has built a
solid reserve base with several interesting projects at various stages of
development, which provide good leverage to the silver price. Accumulate under
David Fried, editor of The Buyback Letter, is the leading authority on companies buying back their own shares. In his Premium Portfolio, he is buying the following five positions: Polymedica Corp. (PLMD NASDAQ), R.J. Reynolds Tobacco Holders (RJR NYSE), Keyspan Corp. (KSE NYSE), US Oncology (USON NASDAQ) and USANA Health Sciences (USNA NASDAQ).”
“Our best advice here is to use any surprise spikes up on the indexesto make sure you have a good mix of our income plays,” says Tobin Smith, editor of ChangeWave Investing. “Our top picks are Aberdeen Asia-Pacific Prime Income Fund (FAX NYSE), PrimeWest Energy (PWI NYSE), RAIT Investment Trust (RAS NYSE), FBR Asset Investment (FB NYSE), New America Income Fund (HYB NYSE), Williams Coal Seam Gas Royalty (WTU NYSE), Apex Mortgage Capital (AXM NYSE), and PIMCO Corporate Opportunity Fund (PTY NYSE). These names give you a great mix of gas royalty trusts, mortgage REITs, and corporate bond funds.”
“Our favorite prime rate fund Van Kampen Senior Income Fund (VVR NYSE) is yielding 6.1%, while still selling at an 8% discount to net asset value,” notes Mark Skousen, editor of Forecasts & Strategies. “It’s my favorite bet on higher short-term interest rates. Remember, prime rate funds move in the opposite direction of traditional bond funds. When interest rates drop, bond funds rally, but prime rate funds fall because dividends, linked to the prime rate, decline. When interest rates go up, bond funds fall, but the prime rate funds rally because dividends rise, and investor interest increases. I’m betting on the latter, and investing in prime rate funds.”
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