Hot Stocks from Coolcat

10/22/2004 12:00 am EST

Focus:

Kevin Kennedy

Publisher, Coolcat Explosive Small Cap Growth Stock Report

The Coolcat Explosive Small Cap Growth Stock Report was ranked #1 by the Hulbert Financial Digest for 1999-2003, with a gain of 529%–a 44.5% annualized return. Here, editor Kevin Kennedy offers some of his latest small cap, high momentum trading ideas.

" We focus on strong performing stocks that have the characteristics of past major market winners. We look for a low float, where there is the potential for big demand and small supply. We look for a low price. It’s easier for a stock to go from two to 20 than it is to go from 20 to 200. We also look for high relative strength. Huge winners start as big winners. We also look for new highs, which suggest that there are no disappointed buyers holding the stock. We look for strong industry groups, particularly in growth-related areas like technology and healthcare. We also look for breakouts from bases on big volume, and pullbacks on lighter volume. We also look for a low price-to-sales ratio, which often attracts bargain hunters.

"What are the characteristics of the very best performing stocks? I look for are an average three-day volume of less than 150,000 shares a day, a relative strength rank of at least 96, a price below 12 (below five is even better, a price-to sales ratio of 5-to-1 or less, no trailing 12-month earnings and no p/e ratio or a p/e above 30, and a market cap of $150 million or less. I'd note that with the market drop over the past couple weeks I now have more stocks passing my screens than at any time since May. Here are the latest stocks to meet this criteria.

"Benthos (BTHS NASDAQ), through its Undersea Systems Division, designs, manufactures, sells and services a variety of oceanographic products for underwater tasks. The company makes systems for testing consumer packages made of glass, metal or plastic through its TapTone Package Inspection Systems Division.

"Century Casinos (CNTY NASDAQ) is an international casino company that owns and operates Womacks Casino and Hotel in Cripple Creek, Colorado; owns and operates The Caledon Hotel, Spa & Casino near Cape Town, South Africa; operates the casinos aboard the ultra-luxury vessels of Silversea Cruises, The World of ResidenSea, and Oceania Cruises. The company continues to pursue other international projects in various stages of development.

"Isonics (ISON NASDAQ) is a world leader in isotopically engineered materials and through its semiconductor division produces isotopically pure silicon-28 chemicals and wafers for the semiconductor industry. Through advances in nanotechnology, the company is also focused on research and development opportunities for further value-added product and application development. Its Life Sciences division markets and sells stable isotopes for the health care industry such as carbon-13 for diagnostic breath tests and drug design, and radioisotopes and stable isotopes such as oxygen-18 for positron emission tomography (PET) imaging. The company's efforts in the homeland security segment are getting attention, due to its prototype eutroTest explosive detection product. We caution, however that ISON has been be a crazy mover this week; it has doubled and I don't want to chase it.  I'll try to get a half-position in it if it settles down and pulls back.

"Media Services Group (MSGI NASDAQ) is a proprietary solutions provider developing a global combination of innovative emerging businesses that leverage information and technology. MSGI is currently comprised of two operating companies: Future Developments America and Innalogic. The company is principally focused on the homeland security, public safety and surveillance industry.

"Parlux Fragrances (PARL NASDAQ) is a manufacturer and international distributor of prestige fragrances and holds the licenses to manufacture and distribute the designer fragrance brands of Perry Ellis, GUESS, Paris Hilton, Ocean Pacific, Fred Hayman Beverly Hills, and its recent addition, Wimbledon champion Maria Sharapova."

Related Articles on