Briefly Speaking ...

09/30/2005 12:00 am EST


Here's a five-pack of favorites. Doug Hughes picks a top banking bet; Vivian Lewis looks to the Canadian tar sands; Mark Leibovit trades a shipping firm and a gold miner; Price Headley likes a utility; and Jim Oberweis looks to China.

Hughes, Doug

"Pinnacle Bankshares (PPBN OTC BB ) operates as the one-bank holding company, serving central Virginia for over 100 years," notes Doug Hughes, editor of The Bankstock Letter. "A new full service branch in Forest, Bedford County, Virginia, opened in August 2004. Deposits are just over $201 million and loans at just over $160 million. Earnings up 8% in the latest quarter to $0.33 a share, for a p/e of 15. They should be able to fetch $27 a share if they were to sell. With book value around $15.75, downside should also be limited to around the $17-18 area. The risk reward is very good and the 2.5% cash dividend is very nice. Asset quality is very strong. Insiders have been buying and own about 7%, with no sales. Accumulate under $19.75 and buy all you can under $18."

Leibovit, Mark

"Diana Shipping (DSX NYSE), which began trading in March, is a Greek holding company that owns and operates dry bulk carriers," notes trading expert Mark Leibovit, editor of Volume Reversal Survey . "The Greek firm charters its vessels to major trading houses, producers, and government-owned entities, carrying iron ore, coal, and grains. The stock is a buy, with a stop below the August 1 low of $12.32. Our upside price target is $20. Meanwhile, we think gold is on its way to a minimum target of $500 an ounce and we think Cambior (CBJ ASE) will benefit greatly from further strength in gold. The stock is a buy, with a stop below the May 16, 2005 low of $1.51. While we suspect that gold may pull back further here, we do not want to miss the turn north in CBJ when gold does reverse up out of its current pullback. Our upside target is $4.75."

Lewis, Vivian"Canada's laws have been used to turn many companies with hopefully steady revenue streams into income trusts," notes Vivian Lewis, editor of Global Investing. "Right now, the best Canadian Income Trust to buy would be Canadian Oil Sands Trust (CA:COS.UN Toronto), a pure play on the largest long-life oil reservoir in North America. This is the largest Canadian income trust. It has only one asset, which is a 35% stake in the Syncrude facility in Athabasca, which will produce oil from tar sands for the next 35 years based on current investment, at the rate of 350,0000 barrels per day. Its distribution level starting next year will be about 13% in Canadian dollars, and its p/e is a cheap 11 times."

Headley, Price"We are buying TXU Corp. (TXU NYSE) at the market as our latest swing trade," says Price Headley in his Big Aggressive Stock Trader. "TXU has made a series of new 52-week highs for over a year, and there doesn't seem to be an end to that trend in sight. While a utility stock isn't our usual type of holding for this aggressive portfolio, the recent performance speaks for itself. Indeed, TXU has more than doubled in less than a year. The buy signal is supported by the growing volume behind the recent movement. Our price target is 133.33, with a closing stop at or under 104.75."

Oberweis, Jim"Focus Media Holdings (FMCN NASDAQ) provides audiovisual TV display advertising through a network of nearly 23,000 flat-panel displays throughout China," notes Jim Oberweis, editor of The Oberweis Report. "The flat-panel displays are located primarily in high-traffic areas of commercial office buildings such as lobbies and elevators, as well as in large retail stores. Focus Media completed its IPO in July at $17. In its latest reported second quarter, its first as a publicly traded company, sales increased 128% to $14.6 million. Earnings were $0.13 versus a loss in the same quarter of last year. These shares may be appropriate for risk-oriented investors. Clients of Oberweis Asset Management own about 1.1 million ADS."

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on

Keyword Image
Major Market Outlook
03/25/2019 10:52 am EST

Our bias is neutral/bearish on S&P 500 and crude oil, and bullish gold, writes Bill Baruch, Pres...

Keyword Image
Recession Fears Overstated
03/25/2019 10:38 am EST

While the yield curve recently inverted, there are no clear sign of an imminent recession, notes sen...