Here we offer a six-pack of ideas: an addiction treatment play Mark Leibovit; a sentiment forecast from George Muzea; a new favorite from bank stock specialist, Doug Hughes; a trading play from Joe Sunderman; and a value "land" pick from Alexander Green.
"Our latest trading buy is Hythiam Inc. (HTM
ASE)," says trading expert
Mark Leibovit, editor of VRTrader. "Its HANDS treatment protocol is designed to treat addictions
to alcohol, cocaine, and other addictive stimulants. HANDS is used
for neurostabilization and detoxification from alcohol and/or
addictive psychostimulants designed to simultaneously eliminate cravings,
enhance cognitive function and facilitate a pain-free withdrawal, resulting
in accelerated recovery. Technically, HTM has declined from 7.40 to 2.70 and is
at or approaching major technical support. We have added HTM to our trading
positions for an intermediate move back toward $5.00. No stop at this time,
recognizing we're trying to catch a falling knife into theoretical
support."
"Insiders are negative across all market caps," says
George Muzea, editor of Magic T. "The problem is not with their selling but their lack of insider buying, a
sign that they see little value at current levels. For the first time
ever, there are no insider open market buys in the NASDAQ 100. I recommend
you avoid stocks in this index. And while insiders are cautious, the public is not. Momentum
investors have come back in the market and I judge them to still be in
the ebullient phase. July sometimes brings a summer rally. However, with insiders
now in the 'stay out' camp, one should be very selective in buying and use a
trading mentality. I also expect that mutual funds will start to sell their
losers beginning in early August this year. My advice is to stay on the
sidelines and be patient."
"The bank stock market and over-all market continue their very
choppy ways and we would stay only with the best asset quality banks and
best franchises in very hot markets," notes Doug Hughes, editor of
Bankstock Newsletter. "Our latest new feature is First Bank of Long Island
(FLIC
NASDAQ), with 24 locations in Nassau and Suffolk Counties, and 3 new locations
in NYC. They're going after high net worth clients as many of their
branches are in some of the hottest real estate markets in the country. Total assets are over
$900 million and growing. They have strong net interest margins and very few bad
loans. The bank has grown earnings at 16%+ for the past 20-25 years and also has
increased their cash dividend 19% per year in that time. Wow! This is a solid
performing bank with great asset quality and they should earn over $3.00 a share
in 2004."
"Quicksilver Resources (KWK NYSE) is an independent exploration firm that
owns interests in more than 5,700 wells in Indiana, Michigan, Montana, Wyoming,
and Canada," notes Joe Sunderman
, in The Daily Contrarian
. "The stock is
the focus of some extremely heavy pessimistic sentiment. The number of shares sold short spiked 14% higher
in June to 6.07 million. This accumulation of bearish bets accounts for more
than 44% of the equity's total float and would take almost 12 days
to cover. An unwinding of these positions could easily fuel a rally
in the shares. While options open interest is light on KWK, investors
are displaying a definite preference for puts over calls. Wall Street hasn't completely jumped on the bandwagon
either, and any upgrades could boost the security higher. Technically,
the shares continue to rally along the support of their 10-day moving average and
are now trading at an all-time high. Traders should target a move to 39.60 with
a stop on a trade below 31.83."
"Our analysts spend a lot of time sifting through data,
calculating a company's net worth and earnings potential," notes Alexander
Green, investment director of the Oxford Club. "A good example is Dan
Ferris' recommendation of Hawaii-based conglomerate Alexander &
Baldwin (ALEX
NASDAQ). Dan camped out in Hawaii's government buildings, going
through thousands of musty land records, to determine exactly what lands the
firm held, and what they were truly worth. What he found is pretty
surprising. Dan explains, 'ALEX owns 90,600 acres of Hawaiian
land. Almost all of it is carried on the books at its original average cost of
just $150 an acre. Some of that land is worth in excess of $1 million per acre
today.' I'd add that ALEX isn't just
attractive based on undervalued assets. Earnings are on fire as well. In the
first quarter, revenues rose 26%, to $344.9 million, and net income skyrocketed
151%."