Thursday - September 16, 2004
![]() Want to view the archive of past issues? Go here. Manage Profit from the Pros subscription: 1. LETTER FROM THE EDITOR Dear Customer, Last week we shared with you the feedback from our recent surveys showing that customers wanted more timely delivery of content to make investment decisions. Given that information we initiated a two-pronged strategy. 1) Improved PFP Email Format: Starting September 7th there is only 1 version of Profit from the Pros that is sent 3 times per week as opposed to 3 versions sent once per week. The benefit is that each of these emails now contains the timeliest commentary available from Zacks.com. No more waiting a week for pertinent information to arrive. 2) Real Time Alerts: We have partnered with Forbes.com to create a simple, yet powerful software application that delivers the investment content you want in real time to your computer desktop. We call this Profit from the Pros: Real Time Alerts and that launches...TODAY! Learn more about Real Time Alerts with free download instructions at: http://at.zacks.com/?id=1460. We are very excited about the launch of this new service and look forward to your feedback. Enjoy! Best Regards, Stephen Reitmeister 2. 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 primary trend remains bullish, according to Richard Moroney, editor of the Dow Theory Forecasts newsletter. However, the Dow Theory says that more needs to be done for this positive momentum to be reconfirmed. In this featured expert, Moroney offers detailed analysis of this market and how the recent stock rebound relates to the Dow Theory. Furthermore, learn about some modestly-valued growers that could help you take advantage of this sudden, bullish tone. Stocks have bounced, as a decline in oil prices and improvement in the job market have triggered a broad-based rebound. The Dow Theory remains in the bullish camp, and Richard Moroney’s recommended cash position remains at 10% to 15%. But, for the primary bullish trend to be reconfirmed, the Dow Industrials will need to close above the February high of 10,737.70. The market’s recent rebound has been encouraging, as stocks have finally begun to respond to positive news. Oil prices have dropped nearly 11% from recent highs as feared supply shortages have not materialized, and employment and wages showed decent growth in August. While some bounce was to be expected given the positive news, the broad nature of the rally provides grounds for optimism. Since the Dow Industrials and S&P 500 Index bottomed on Aug. 12, all 10 sectors of the market have advanced. Cyclical stocks have jumped sharply, as bad news from the technology sector is no longer weighing on such economically sensitive groups as materials, industrials, and transports. Meanwhile, such rate-sensitive groups as utilities and financials have rallied impressively, suggesting concerns regarding inflation and interest rates have diminished. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Among NYSE stocks, advancing stocks have outnumbered declining stocks in more than three-fourths of the trading days since Aug. 12. Among NASDAQ stocks, advancers have led decliners in nearly two-thirds of the trading days since Aug. 12. While the breadth of the advance is heartening, the Dow Theory evaluates rallies by their ability to penetrate previous highs. With a close above 10,737.70 in the Industrials, the bullish primary trend would be reconfirmed. While the Dow Transports are already in an uptrend after reaching a new closing high of 3204.31 on June 30, a close above that level would be a bullish development. Conversely, a failure to reach new highs in the Industrials and Transports would be discouraging, and a joint failure followed by a move in the Transports below 2750.80 would shift the Dow Theory into the bearish camp. The primary trend remains bullish, and investors should continue to look for opportunities in individual stocks. High-quality stocks with low price/earnings ratios have outperformed over the past two months, and Moroney remains bullish on such modestly valued growers as: Ball Corporation (NYSE: BLL) is a manufacturer of metal and plastic packaging, primarily for beverages and foods, and a supplier of aerospace and other technologies and services to commercial and governmental customers. Brunswick Corporation (NYSE: BC) is the global leader in consumer products for active recreation with leading brands in pleasure boating, marine engines, fitness equipment, fishing, camping, bowling, billiards and biking. The company has been implementing growth strategies to expand its active recreation business by creating superior products and services, pursuing innovation, aggressively marketing its leading brands and acquiring complementary businesses to enhance growth of its core products. Delphi Financial (NYSE: DFG) is a holding company whose subsidiaries provide integrated employee benefit services. The Company manages all aspects of employee absence to enhance the productivity of its clients and provides the related insurance coverages: long-term and short-term disability, excess and primary workers' compensation, group life and travel accident. The Company's asset accumulation business emphasizes individual annuity products. Manulife Financial (NYSE: MFC) is the holding company of The Manufacturers Life Insurance Company and its subsidiaries. Manulife Financial is a leading provider of financial protection products and investment management services to individuals, families, businesses and groups in selected international markets. Wells Fargo (NYSE: WFC) is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Get clear Buy, Hold and, yes, SELL advice from one of the nation`s oldest and most successful investment newsletters. Our in-depth analysis and advice have been helping subscribers weather market volatility since 1946. Learn more about this newsletter and free trial offer at: http://at.zacks.com/?id=346. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - b) Troubling Chart Patterns - Wait for Proof in Oil, Market Pudding Dennis Slothower describes the stages the oil and stock markets have gone through over the last months. Find out what he needs to see for the stock market to break out and what he expects from oil, stocks and the election. More... c) Defensive Play in Document Storage Company Paul Tracy seeks conservative long term picks in this environment and profiles one of his favorites, the leading document storage company. More... Price Headley discusses the recent strength in tech stocks and the values among a sector that would score higher save for poor intermediate performance. 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=637.
3. WEEKLY COMMENTARY: Experts Watch Zacks.com offers 3 unique weekly commentaries that all further
our mission to help you Profit from the Pros. Today is the
latest installment of Experts Watch from Trace Johnson. Each
week Trace shares winning strategies from leading investment
experts to outperform in any market environment. Election, 2004 and the Market Does the market prefer a Republican or Democrat in the White House? Does it care, ultimately, who wins? What can be expected of the Dow and S&P in a presidential election year? What have those two indices done between August and the election over the last 19 elections? Will the answers to any of these questions tell us anything about what can be expected from the market right now and in reaction to the 2004 election? The Experts turn to these questions and the germane studies at least once every four years and the insights they offer are worth scrutinizing for any investor. Discover how they account for elections in their investment outlooks and core recommendations right now. What is to be Expected in an Election Year? The election year cycle has been an oft-cited positive to be expected from 2004. Aside the from vitriol and invective that are to be expected in any election year, it is important to try and discern what we can expect from the market. Independent of political parties, the market, interestingly has a history of performing very well in election years. According to John Reese, editor of the Validea Hot List notes, “during the last 19 presidential election years, the Dow has ended the year higher than it was at the end of August, while the same is true for the S&P 500 in 15 out of 19 presidential election years.” Dennis Slothower, editor of Stealth Stocks, observes that the market tends to rise from mid-term elections through the presidential election. The election is inherently an uncertain outcome. Combined with the inherent randomness of the market, it is possible that the two could make simultaneous moves. Inevitably, analysts in the 24 hour news cycle will seek to impose interpretations and explanations of market moves relative to the popular conception of who will win an election. Yet, we must consider the possibility that they are independent entities. Over the last 84 years, the market has perceived war, peace, victory, defeat, inflation, stagflation and roaring growth, all coupled with optimism and pessimism. Further, modern election coverage eternally casts the contest in terms of a horse-race that sometimes isn’t resolved until more than a month after election day. However, the cyclical behavior of the market is undeniable, and 2004 will provide one more data point. More...
And More... Click here to read the full article with commentary and
recommendations from leading market experts. http://at.zacks.com/?id=14 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SCREEN OF THE WEEK Cheap Stocks and Big Returns Kevin Matras goes over one of his favorite strategies for
finding cheap stocks with big returns. So far this year, it is
up 25.1%. Find out how and get this week’s top picks. http://at.zacks.com/?id=1410 ALL STAR TOP PICKS Better Reception for Telecom Equipment Renewed interest in cell phones has helped to upgrade the telecom equipment industry, and the All Stars have five recommendations to connect you with this enterprising space. http://at.zacks.com/?id=1411 4. 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 EnCana Corp. (ECA) iPass Inc. (IPAS) Software Story: Survival of the Fittest Transportation Industry Outlook - Neutral Summer Earnings Lull Is Upon Us
5. TRADING STRATEGIES: Model Portfolios 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… This Growth and Income Strategy is pretty straightforward, yet amazingly profitable. The goal is to find solid companies paying out extraordinary dividends. With money market rates being so low, we think many investors will find appeal in this strategy with minimum dividend yield of 8% plus attractive equity appreciation potential. This screen has the least turnover of any of the Profit Tracks and has shown excellent results with both 12 and 24 week holding periods. We know there are those of you who may be worried about too much REIT exposure in this type of strategy. The good news is that we have also backtested this strategy by removing REIT stocks and the results were still outstanding. Discover the full details, parameters and performance information for the Growth & Income strategy at: http://at.zacks.com/?id=1458. Novastar Financial (NYSE: NFI) is the world's second-largest manages a portfolio of sub-prime mortgages originated by its affiliates. The company reported second quarter earnings that demonstrated 5% growth on a year over year basis. The company offers a dividend yield of 13.4%, and some analysts expect the company to increase that yield in the latter half of the year. To continue your research on NFI, click here. Primewest Energy (NYSE: PWI) is a leading provider of is a Calgary-based conventional oil and gas royalty trust that actively acquires, develops, produces, and sells natural gas, crude oil, and natural gas liquids for the generation of monthly cash distributions to unit holders. Primewest has increased its monthly distributions effective in its September 15th payout due to forecast increased production volumes and strong commodity prices. The company offers a dividend yield of 13.3%. To continue your research on PWI, click here. MCI Inc. (NASDAQ: MCIP) is leading global communications provider, delivering advanced communications connectivity to businesses, governments and consumers and with the most expansive network in the business. The company is out of bankruptcy, generating strong results thanks to cost-cutting and offers a 9.4% dividend. To continue your research on MCIP, click here. All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this Upgrades and Revisions strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to the this powerful stock picking tool. Learn more about the Research Wizard and Free Trial offer at: http://at.zacks.com/?id=1370 6. OPTIONS CENTER The phrase “It is all Greek to me” - can Schaeffer’s Investment Research offers the Option Tool: Greek Montage on the Zacks research site. What may seem like Greek Speak to some is a very pivotal tool for the serious option trader. Simply put: The Greeks, detailed within the Greeks Montage, are a collection of statistical values that give the investor a better overall view of how you can expect an option to perform with respect to the underlying stock. When used to describe options, Greeks primarily compare the movement of an options theoretical price or its volatility in relation to the underlying stock’s change in price or volatility as the option nears expiration. These statistical values can be helpful in deciding which options strategies are best to use. In addition, as Schaeffer’s always suggests, it is good to use ANY option tool in correlation with other option tools to best determine your strategy. Use these additional market indicators as support of our Sentiment Tools to reinforce your market take. To learn more about the Greek Montage, click here.
Recent Options Commentary from Zacks.com a) LEAPs are a Good Long-Term Play LEAPs are less volatile than shorter-term options, and Ken Trester believes that this is a good time to use such long-term strategies. Find out why this expert remains cautious even though his indicators are giving bullish readings, and then learn about a pair of LEAPs. More... The stock market`s rallies over the past couple of weeks are
unlikely to continue, according to Dr. Edward Olmstead. This
expert`s long-term outlook is quite bearish, and therefore he
offers a few option trades to help you capitalize. More... Discover all the tools and commentary available from the Zacks.com Options Center at: http://at.zacks.com/?id=1421. 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=1424. Or view the full list of Zacks #1 Ranked stocks at: http://at.zacks.com/?id=1423. 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. 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. | ||||||||||

