Tuesday - January 18, 2005
![]() Want to view the archive of past issues? Go here. Get the latest investment alert technology and receive the most up-to-date Profit from the Pros content as it’s published, in Real Time, with no waiting. Learn more about this free tool at: http://at.zacks.com/?id=1452. Manage Profit from the Pros subscription: 1. FEATURED EXPERTS Here we cast the spotlight on a timely Featured Expert commentary that recently appeared on Zacks.com. Following the article you will find previews of other profitable commentaries with insights and recommendations from leading investment experts.
The market will move higher after fourth-quarter earnings announcements are complete. In the meantime, stocks will rise on good earnings reports and fall on disappointing reports. The stock market is still undervalued by 33 percent, with six trillion dollars on the sidelines. Long-term investors should be patient with this temporary volatility. The market is experiencing its first consolidation since the gains of November and December and a healthy correction at this point is to be expected. Volume is normal, with no sign of heavy selling by institutions. Fund managers are still holding year-end monies, which will flow into the market this month. The U.S. stock market will outperform gold, bonds, real estate and all other investment sectors. Keep your money at home in the U.S. stock market. Do not invest in Europe or China. In 2005, investors in the U.S. stock market will see a record- breaking year. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - For Investment Strategy One, Donald Rowe recommends that you OWN or BUY the following stocks: Corporate Executive Board (NASDAQ: EXBD) provides best practices research and analysis focusing on corporate strategy, operations and general management issues. Best practices research identifies and analyzes specific management initiatives, processes and strategies that have been determined to produce the best results in solving common business problems or challenges. The company provides research and analysis on an annual subscription basis to some of the world`s largest and most prestigious corporations. Nextel Partners, Inc. (NASDAQ: NXTP) has the exclusive right to provide digital wireless communications services using the Nextel brand name. Nextel Partners offers its customers the same fully-integrated digital wireless communications services available from Nextel including digital cellular, text/numeric paging and Nextel Direct Connect - a unique digital two-way radio feature - all in a single wireless phone. Nextel Partners` customers can seamlessly access these services anywhere on Nextel`s or Nextel Partners` all-digital mobile network. A SUPER ECONOMIC BOOM IS COMING! Momentum investor, Donald Rowe brings decades of experience and helps you utilize The Wall Street Profit System 2005™ to double your money every three years! Learn more about this newsletter and free trial offer at: http://at.zacks.com/?id=28. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Judy Alster says VoIP is hitting its stride as both a
technology and an investment. Read about two innovative
companies that could become the next big thing in this growing
space. More... David Fried created a successful strategy based on investing in
companies buying back their own stock. Learn about two of the
most recent recommendations in the Buyback Premium Portfolio. More... Ed Bugos` decision to limit his exposure to gold stocks in 2004
turned out to be the right call. Read how this gold expert
performed last year and what he expects for 2005. More... Steve McKee says he will apply market timing directly to the
fund rather than on the market moving forward. Learn how fund
selecting working during both bull and bear markets, and then
read about three highly-ranked mutual funds. More... Dennis Slothower said the market spiked too quickly to correct
properly. Get this expert`s analysis of the market and make
sure you`re not caught offguard. More... Featured Expert articles are courtesy of the 60+ leading investment newsletters that have partnered with us to create the Zacks Expert Advice service. Check out the Experts section of Zacks.com daily to find profitable stock picks and timely market commentary at: http://at.zacks.com/?id=1340.
2. WEEKLY COMMENTARY: All Star Top Picks Zacks.com offers 3 unique weekly commentaries that all further
our mission to help you Profit from the Pros. Today we will
uncover the current top picks of 5 Star analysts in a hot sector
(a.k.a. All Star Top Picks). Why? First, it makes sense to tap
into industries that have potential to outperform the market.
Second, within that sector you want to be on board the stocks
with the best prospects. To help us uncover these top picks we
employ the keen insights of 5-Star analysts. Who are they? Check
out the "About Zacks All Star Analyst Survey" section below. This week we explore the Machinery Industry Machinery is an economically sensitive and rather cyclical industry. Luckily for investors, we are in one of the more beneficial cycles at the moment. This is underscored in Nick Raich’s “Weekly Earnings and Sector Update,” where the machinery space holds a Zacks Industry Rank of 2.67, or 42nd out of more than 200 industries. “The industry continues to have broad-based strength with little evidence of waning,” according to Jeff Hammond, manufacturing analyst for KeyBanc Capital Markets. Hammond said machinery moved from recession to recovery during the 2003/2004 period, and is now switching gears from recovery to expansion in 2005. Investors should know that growth does moderate once the industry fully recovers from a recession, but Hammond says the environment still remains favorable. The principal driver for the machinery industry’s solid performance comes from pent-up replacement demand. After three years of underspending, companies finally felt comfortable enough to start spending again and found that they had a lot of ground to cover. Other factors including increasing productivity and capacity expansion spending, which Hammond says hasn’t even kicked in yet. However, as every investor knows, an advantageous industry is not enough to ensure your full profit potential. Hammond looks at several company-specific issues to get an edge. Internal differentiation, such as the quality of the management team, is a very important factor. Also, while many machinery companies are fairly diversified, Hammond says it’s also very important to study the end markets that a company serves, since some are more interesting and better-positioned than others. Finally, since this is an economically sensitive space, Hammond wants to find companies that work on being less cyclical. Therefore, it’s very important to get the insights of analysts like Hammond before venturing out into any industry, including those that are on the rise. In addition to the domestic angle, machinery companies also have big ambitions globally, especially in emerging markets in Asia such as China. You need to have all the information possible for a cyclical industry full of heavily diversified companies. With the help of analysts, your portfolio could become a well-oiled machine with portfolio exposure to this industry. The answers to these questions are found in the remainder of this All Star Top Picks article at: http://at.zacks.com/?id=1451. To see the full All Star Survey with access to all ratings, research and stock picks, then visit: http://at.zacks.com/?id=12. These are the best stock picks from the best stock pickers in the business. This portfolio only includes stocks recommended by five or more of the 5-Star analysts based on stock picking performance. In 2003 it gained 46.6% nearly doubling the performance of the S&P 500. See the full portfolio at: http://at.zacks.com/?id=13. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Bull Markets Don't Take Passengers Sentiment was flying high through New Year's, but 2005
delivered the market a hearty hangover. What's next? The
Experts discuss and highlight top stocks. More... Creating a Custom Consensus of your Winningest Screens Kevin Matras combines some of his winningest strategies to
create a Custom Consensus screen. See how it's done and how you
can do it too. And get 3 top consensus picks from this week's
list. More... 3. BEST OF ZACKS INDEPENDENT RESEARCH The analysts from Zacks Independent Research create a mountain of insightful equity research everyday of the week. Here you will find the best of that information recently published on Zacks.com. BULL OF THE DAY Stora Enso ADR (SEO) - Strong Paper Demand in U.S. & Europe Tower Automotive (TWR) - Hurt by Ford Production Cuts Europe, U.K. Markets Neutral to Positive Increasing Rate Environment to Help Banks & Thrifts Fourth Quarter Earnings Kick Into High Gear 4. TRADING STRATEGIES: Zacks #1 and #5 Additions Zacks.com is proud to share with you some of the best trading
strategies that truly allow you to Profit from the Pros. Today
we highlight… Zacks Rank #1 and #5 Additions The Zacks Rank is a powerful stock indicator whose #1 Strong Buys stocks have risen +32.9% on average annual return since 1988 vs. +11.8% for S&P 500. And just as important it tells you which stocks to sell now (Zacks #5). Since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 168.4% annually (11.81% vs. 4.40% respectively). Learn more about the Zacks Rank following this section. Below you will find all the stocks added to the Zacks #1 and #5 Ranked lists this week.
More. . .
Zacks #1 Rank List continued...
To see the full list of Zacks #1 Ranked stocks (approx. 200 stocks), then click here. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Zacks #5 Ranked List: 53 New Additions (alpha by ticker)
More. . .
Zacks #5 Rank List continued...
To see the full list of Zacks #5 Ranked stocks (approx. 200 stocks), then click here. 5. OPTIONS CENTER Zacks has partnered with the leading options experts, Schaeffer’s Investment Research, to provide you the best options commentary, research and trading tools on the market today. Read below more on Schaeffer’s Tools to Profit with Options. Understanding ALL of the attributes in the Options tools arsenal, here at Zacks, is pivotal to your portfolio's success. One extremely beneficial option tool found here at Zacks is the Volatility Index Chart. This tool can help you to decide what actions to take with regard to the market. The basis of the VIX is the willingness of traders to protect their portfolios with puts. The more confident the traders, the less they feel a need for puts to protect against a possible decline. So on that basis, the VIX is a measure of confidence. When you have a low number on the VIX this means there is a high level of complacency as traders don't see the need to have any downside put protection. On the other hand, a high VIX would suggest that traders are scared as they are buying downside put protection. What this means to you is that when you see a VIX that is near multi-year lows, similar to current levels today around 13, you must be on the look out - as there is near extreme optimism. From Schaeffer's contrarian point of view, when everyone is thinking one way, it is usually a safe bet to be very careful or even to go the opposite direction. Conversely, when the VIX spikes higher as fear begins to take hold of the market and selling takes over. It is time to be on the lookout for a quick violent rally as the crowd has now become overly fearful. As we emphasize each week - there is no perfect strategy, each relies on the others to help you determine your best move. The Volatility Index Chart is just another means of protecting you and your portfolio. To learn more about the Volatility Index Chart, click here. Dr. Edward Olmstead saw the homebuilding stocks beginning to
breakout last week. Learn about his favorite company in the
space and a bonus option trade that could help you take
advantage. More... Ken Trester and his team continue to expect a rally at the end
of this month, after a pause to refresh. Get this expert’s
outlook for the rest of January and then take a look at a pair
of recent option trades. More... Discover all the tools and commentary available from the Zacks.com Options Center at: http://at.zacks.com/?id=614. OTHER TOOLS FROM ZACKS At the heart of Zacks Investment Research is the Zacks Rank investment philosophy that continues to vastly outperform the market. Our Zacks #1 Ranked (Strong Buys) have produced the following results for investors:
And just as importantly, our #5 Ranked stocks (Strong Sells) have alerted investors as to which stocks to dump from their portfolios to avoid unnecessary losses. To truly take advantage of the Zacks Rank, you need to first understand how it works. That`s why we created the free special report; Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Download a free copy now to prosper in the years to come at: http://at.zacks.com/?id=1346. Or view the full list of Zacks #1 Ranked stocks at: http://at.zacks.com/?id=1353. FREE PORTFOLIO TRACKER Do you believe that these events affect stock prices?
If you answered yes, then how are you staying on top of these changes for your stocks? If you are one of the 45,000 investors who wake up every morning to the Daily Portfolio Updates emails from Zacks.com, then you are all set. If not, then sign up now to get this vital information sent to you daily to help take definitive action to improve your portfolio's performance. Did we mention it's free? Get started now! We hope you enjoyed this issue of "Profit from the Pros", And we look forward to visiting with you again next week. REFER-A-FRIEND If you enjoy this e-mail newsletter, then please pass it along to a friend. Simply forward them the link below to sign up for their own free subscription. If you're reading a forwarded copy, sign up for your own, so you get this wealth of information every week. Just click here. THANKS! Regards and Happy Investing, Stephen Reitmeister p.s. What is the mission for Zacks Profit from the Pros? Click here to find out how we will help you become a more successful investor. *The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. To contact us by mail: Zacks Investment Research To unsubscribe from receiving "Profit from the Pros" e-mail newsletter, click here. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

