1. ZACKS RANK BUY STOCKS: Today we highlight four new stocks:
New Oriental Education (EDU), Ctrip.com (CTRP), Coca-Cola
FEMSA (KOF) and Nam Tai Electronics (NTE). Get these stories
2. BEST OF EQUITY RESEARCH: The telecom industry is still
growing at a rapid pace in the Asia/Pacific region. Read the
Analyst Interview and get our Bull and Bear Stocks of the Day.
3. STRATEGIES & IDEAS: Kevin Matras talks about
diversification and the importance of an equally dollar
4. ZACKS $100,000 Challenge: Simulator player "TheUncle" looks for stocks
with a high return on equity, consistent earnings growth and a
low forward price-to-earnings ratio.
Read current and past issues of this newsletter.
ZACKS REVEALS THE MOST EFFECTIVE WAY TO BENEFIT FROM #1 RANK STOCKS"
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Wednesday - December 12, 2007
As I predicted last Friday, the Fed voted yesterday to cut the
federal funds rate by 25 basis points to 4.25%. Although the
initial reaction was not positive, I think there are several
benefits going forward:
The softer language in yesterday's statement all but ensures
additional rate cuts. The Fed realizes that it has a problem
on its hands and needs to act accordingly. It is also very
possible that we could see further action involving the
discount window and overnight lending - actions that could
provide much needed confidence to lenders.
- The Federal Open Market Committee (FOMC) dropped the
language that described upside risks to inflation and
downside risks to growth as being equally balanced.
- The FOMC acknowledged that it needs to be more proactive,
saying, "Recent developments, including the deterioration in
financial market conditions, have increased the uncertainty
surrounding the outlook for economic growth and inflation."
- Not only was there a dissenting vote, Boston Fed President
Eric Rosengren, but the dissension was for a larger rate
cut. We have not seen this in quite some time. (In October,
Kansas City Fed President Thomas Hoenig voted against any
Wishing you prosperity,
Charles Rotblut, CFA
Senior Market Analyst & Editor,
Profit From the Pros
1. ZACKS RANK BUY STOCKS
Zacks #1 Rank stocks average a 32% annual return. Every day on Zacks.com we highlight four new Zacks Rank Buy stocks based on the four main schools of investing: Aggressive Growth, Momentum, Growth & Income and Value.
Aggressive Growth - New Oriental Education & Technology Group (EDU)
New Oriental Education & Technology Group, Inc. (EDU) is being
buoyed by surging enrollments. Earnings and revenue growth have been terrific to say the least. Read the full analysis on EDU now!
Growth & Income - Ctrip.com International Ltd. (CTRP)
Ctrip.com International Ltd. (CTRP) offers exposure to China's
burgeoning economy. The company announced third-quarter
earnings of 21 cents per share, surpassing the consensus
estimate by 31%. Read the full analysis on CTRP now!
Momentum - Coca-Cola FEMSA (KOF)
Coca-Cola FEMSA (KOF) gained almost 10% in value within the
last month. The company reported a strong quarter in late
October with earnings easily beating analyst expectations. Read the full analysis on KOF now!
Value - Nam Tai Electronics (NTE)
Nam Tai Electronics (NTE) is trading at about 10x next year's
earnings estimates of $1.11 per share. This would represent 17.7% growth over this year. Read the full analysis on NTE now!
OTHER ZACKS RANK RESOURCES
- Zacks Rank Home Page: Go there now.
- All Zacks #1 Rank Stocks . Learn more...
- Zacks/Schaeffer's Options Trader: Gain the 1-2 punch of the
powerful Zacks Rank and Bernie Schaeffer's proven option
trading expertise for market-beating profits. Learn more...
- Zacks Wealth Management: Own all the Zacks #1 Rank stocks in a portfolio managed by Zacks. Learn more...
2. BEST OF EQUITY RESEARCH
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The Zacks Equity Research team of 50 analysts generates a mountain of timely research every day that is geared towards long term stock investing. Here we turn the spotlight on some of their hottest insights.
ZACKS ANALYST INTERVIEW
PHI Among Pacific Rim Buys
The telecom industry is still growing at a rapid pace in the Asia/Pacific region. More...
Stocks featured recently include Vodafone Group (VOD), Equifax (EFX), Snap-on (SNA) and American Capital Strategies (ACAS). To see the latest analyst posts, click here.
BULL OF THE DAY
Abbott Labs (ABT) - Pipeline to Pay Off. For the full Zacks research report, click here.
BEAR OF THE DAY
Avici Systems (AVCI) - Growth Too Slow. For the full Zacks research report, click here.
EARNINGS TRENDS w/ Dirk Van Dijk
Analysts are relentlessly cutting their estimates for the financial sector. More...
EARNINGS PREVIEW with Charles Rotblut
The Week of Dec 10 - Dec 14
Five S&P 500 members are scheduled to report: COST, HRB, KR, LEH and PLL. More...
ZACKS INDUSTRY RANK with Charles Rotblut
Bullish Revisions on Two Tech Companies
Good earnings led to higher estimates on SIGM and TECD. Also,
read about video game companies ATVI and NTDOY. More...
OTHER ZACKS EQUITY RESEARCH RESOURCES
- Zacks Equity Research Home Page: Go there now.
- All Rating Upgrades . Learn more...
- Powerhouse Energy Stocks: Five Ways to Fuel Big Profits as Oil Prices Soar pinpoints those stocks set to skyrocket. Learn more...
- Zacks Elite narrows down Zacks Equity Research
recommendations into three focused portfolios. Learn more...
3. STRATEGIES & IDEAS
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Here you will find fresh articles loaded with profitable investment strategies and ideas to help you beat the market.
Today we highlight...
SCREEN OF THE WEEK
Diversification and Portfolio Weighting
Kevin Matras talks about diversification and the importance of
an equally dollar weighted portfolio. Stocks featured include
CASY, CY and LEA. More...
ZACKS WEALTH MANAGEMENT
Protecting Your Assets from Creditors
The more accessible the asset is, the greater the risk that a
creditor will have claim on it. More...
PROFIT TRACKS: RECENT PRICE STRENGTH
Find stocks trading in the upper ranges of their 52-week highs
through this screening method. Four stocks that pass this
screen's test include TX, HSR, MTD and CLR. More...
Get Back on the Train
This screen identifies companies that have rebounded nicely
from the recent sell-off. Stocks highlighted include DECK,
PCLN, TRA and SIGM. More...
TIMELY BUY of the WEEK
Synaptics Inc. (SYNA)
This company's stock price has had a great year and looks well
positioned to continue higher. More...
FREE REPORT: Top 10 Stock Picking Strategies
Most of the strategies highlighted in the articles above were created using the Zacks Research Wizard screening and backtesting software. Learn more about this powerful tool and get your free copy of our special report "Top 10 Stock Screening Strategies". More...
4. ZACKS EXTRA
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Top Zacks Challenge Player Interview: TheUncle
"TheUncle" looks for stocks with a high return on equity,
consistent earnings growth and a low forward price-to-earnings
Read the full article.
BEST OF ZACKS CHALLENGE BLOG
OPTIONS AND TREND TRADING - ORACLE CORPORATION (ORCL)
The December $22.50 call options had an unusually high volume...
This is an unusually bullish move considering these options
will be expiring on Dec 15... I believe this creates a unique
Read More or Comment on this post.
INTRODUCING ERIC S. ROSENGREN, MY FAVORITE FOMC MEMBER
Based on both his speech and his dissenting vote on the fed-
funds rate target, Rosengren in now my favorite FOMC member.
Of course, his current tour of duty on the body will draw to a
close with the end of the year. Alas, Mr. Rosengren, we barely
Read More or Comment on this post.
The put/call open interest ratio filter takes a look at this
fast-food giant. More...
Zacks Dividend Yield Portfolio Crushes the S&P
Zacks Dividend Yield Portfolio consists of 15 amazing stocks
that have crushed the S&P over the past seven years. If you
had invested $10,000 in the market, it would have inched up to
only $11,556. But $10,000 invested in Dividend Yield
Portfolio picks would have soared 342.3% to $44,232! If you're
looking for a portfolio that delivers high dividend yields as
well as strong growth click here to learn more.
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about our time tested stock ranking system that gas
generated 32.2% average annual return since 1988: click here.
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Regards and Happy Investing,
Charles Rotblut, CFA
Senior Market Analyst
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 performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
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.
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