Briefly Speaking: A Six-Pack of Picks

Kevin Kennedy, editor of The Coolcat Report , has added three medical tech stocks to his list of momentum buys; each shows relative strength of 99 (out of 100) and trades for below $15: "I-Flow (IFLO NASDAQ) designs and markets technically advanced, low-cost ambulatory infusion systems that are redefining the standard of care by providing life enhancing, cost-effective solutions for pain relief and infusion therapy. LCA-Vision (LCAV NASDAQ) owns and operates 33 LasikPlus laser vision correction facilities in the US, plus two centers in Canada and a joint venture in Europe. Vascular Solutions (VASC NASDAQ) is an interventional medical device company with a focus on sealing technologies."

"Earnings have been strong for the last quarter," says Lou Dobbs in The Lou Dobbs Money Letter. "Results from nearly all of the S&P 500 companies are now in and 86% of them have matched or beaten targets, and profits are up roughly 10% on the quarter. Now that’s what I call good news. One of our featured companies, GreenPoint Financial (GPT NYSE), had record earnings this quarter. The company issued a 15.2% dividend increase this month, and has had a total dividend increase of 44% this year. GreenPoint’s stock also had a 3-for-2 split this week. That’s the kind of news we all want to hear."

"Cognex (CGNX NASDAQ) designs machine vision systems that are used to automate a wide range of manufacturing processes," says Donald Rowe, editor ofThe Wall Street Digest . "These interpret video images to determine if a part is defective. It also detects defects on the surface of products including the paper used to print US currency. In 2002, Cognex posted $114 million in revenue and achieved its 16th consecutive year of profitability. Over the past three quarters, it has realized earnings growth of 367%, 167%, and 500% on sales increases of 37%, 51%, and 34%, respectively. The company is expecting earnings of $0.34 per share this year, an increase of 780% from last year. Long-term earnings growth is expected to average 20% annually."

"In the past, we have taken bullish positions in the CRB Index as a way of ‘playing the field’ in commodities," says Larry McMillan in The Option Strategist. "In addition, there is a Commodity-Related Stocks Index ($CRX) that includes stocks such as Phelps Dodge, Newmont Mining, Alcoa, Baker Hughes, etc., that is designed to be a way that ‘stock traders can trade commodities as a basket.. The $CRX stock index has been stronger than the actual commodities since March. Buy 2 November CRB futures contracts at 238.50 or less. We're recommending the futures because they are more liquid than the $CRX options. However, if you prefer the $CRX index, then buy the $CRX October 270 calls –priced at about $7; stop yourself out on a close below 236."

"There is a bull market in small-cap security and defense companies," says Gregory Spears, editor of The Spears Report. "Engineered Support (EASI NASDAQ) is just such a company. It is in the business of preparing for the worst. EASI has particular expertise in environmental engineering for both civilian and military emergency situations. The company has developed a 150-bed prototype of a 500-bed mobile hospital, which could be used to provide observation, quarantine, isolation, and treatment to victims of infectious disease outbreaks, or other natural or man-made disasters. For the six months ended 4/30/03, revenues rose 35% to $246 million, while net income from continuing operations rose 36% to $16.9 million. Technically, the stock has been in a beautiful uptrend since 1992. EASI could, at the very least, function as a 'bad news hedge’."