Tuesday - December 7, 2004
 Want to view the archive of past issues? Go here. Get Profit from the Pros content in Real Time. 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.
From Down Escalator to Up The down staircase market of lower lows that lasted 8 months from February to October and dropped -9% was a consolidation of the previous +47% gains and has now started back up into a new pattern of higher highs. Of course there will be more rock’em and sock’em ahead, the charts look like a 200-300 point setback could even happen, but Jack Schannep would rather be ‘in the game’ than on the bench, hence fully invested for the months and year ahead. The current setback should start the pattern on higher lows to go with the higher highs already established, thus meeting the definition of an up market. This year was ‘supposed’ to be an up year following as it did the multiple down years of 2000, ’01, and ’02, and it looks like it will be for the S&P500 but that does not assure that 2005 will also end up. More likely it will be up because this 3rd and the 4th quarter will last as long as the 1st and 2nd quarters did, which was 16 months from the Oct ’02 low to the Feb ’04 high. Such a measured move could get us through 2005, particularly if the major problems of “Terrorism, Oil, Iraq” will settle down. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The Election is out of the way, and Oil might be topping, but certainly Terrorism and Iraq show no signs of going away. We’ll need continuing progress on those fronts and a little help from our economy for the new year to be a good one. The Dow Jones Industrials has been lagging most of the ‘Major Stock Indices’ shown daily in the Wall Street Journal with only the NASDAQ Biotech Index showing a loss for this year-to-date. With the Dow up 5% in the last month alone, it nonetheless has thus far failed to gain on the broader based NYSE Composite as shown on the Subscribers page. Jack Schannep, who deals in Spiders (AMEX: SPY ) and Diamonds (AMEX: DIA) , still expects it to close the gap in the months ahead and to parallel the advances of the 26 out of the 27 other ‘Major Stock Indices’ which are up this year. On October 9th, 2002 this man called the bottom, before anyone else, AND HE WAS RIGHT. Featured in TheStreet.com, Dow Jones Newswire, Forbes.com, and “Technical Analysis of Stock Trends” by Edwards & Magee. This is THE authority on the Dow Theory with a documented record of outperforming the stock market and other Dow theorists by a wide margin for many years. http://at.zacks.com/?id=342. Learn more about this newsletter and free trial offer at: http://at.zacks.com/?id=217. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Donald Rowe says you should be fully invested. Find out how the
Great 2005-2009 Bull Market will unfold and then learn about
several stocks to purchase now. More... c) Buying Scarce Among Company Insiders A rise in insider selling suggests that some people are getting
cautious, according to Bill Martin and Matt Ragas. However,
there has been some insider buying as well, and this pair points
out four examples from their portfolio holdings. More... d) Don`t Misunderstand Moves in Oil After a $3 drop in the price of oil, Price Headley exmaines the
market, dispels some myths and provides guidance for the
precious commodity. More... e) December 1st Comes Through Again On December 1st, stocks started out strong and never looked
back. David Moenning examines the combination of factors that
led the charge. More... f) Short Cycles Primed for End of Year Rally Dennis Slothower says the market could be poised for a strong
end-of-the-year rally. Let this mutual fund expert get you
positioned to harness the upcoming profit potential. 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 Biotechnology Industry It’s hard to imagine a more exciting industry than biotechnology. However, excitement doesn’t always translate into profit for investors, and finding real winners can be as tricky as the diseases that this space fights. While there’s no magic formula for picking the most innovative and best-run biotech companies from the hundreds of candidates, there are ways for investors to weed out a bulk of the undesirables. If done effectively, biotech can live up to the better half of its reputation; as one of the most intriguing and life-changing segments of the market. At present, the biotech industry has a Zacks Industry Rank of 2.95, according to Nick Raich's "Weekly Earnings and Sector Update," ranking 91st out of more than 200 industries. The summer months were rough for biotech, as is usually the case. Even though many of the space’s stalwarts reported decent quarters, investors weren’t willing to put money in riskier ventures when so many other factors were pressuring the market. Analysts remained largely patient, opting to tout the industry’s innovation while keeping their distance until a more advantageous time. Caution among analysts, and investors for that matter, remains high, but it might be a good time to try and find those companies poised for success. One of the leading factors that analysts like to see in a biotech investment revolves around their ability to fulfill a unique niche. By nature, this space moves quicker than the larger, more traditional pharmaceutical companies. If a company can be the first to target an underrepresented health issue with an effective treatment, then that company could become a true ‘hot spot’. Most of the larger biotech companies, such as MedImmune and Genentech, are so well known because they have already fulfilled this crucial requirement. Finding the next ‘diamond in the rough’ can be a perilous road if you don’t have some help. From a tamer perspective, a truly revolutionary treatment in a well-represented area could also aid investors. Equally as important is the company’s cash position. Bringing drugs to market is a long and expensive process, which promises to have several setbacks along the way. A solid investment should have an effective balance sheet that can maneuver through such obstacles and find a way to get approved. Biotech companies have several ways in which to keep research and development moving forward, including acquisitions. There are numerous other factors that analysts use to find ‘the next big thing.’ Biotech is a very large, and growing, space with some companies focusing on a pipeline and others looking for their first big break. Investors should be very careful as they move through the industry, because oftentimes the duds outnumber the winners. However, you can make your own luck by consulting the analysts before making your move. They already have their finger on the pulse of this space, and can help you treat a lackluster portfolio with some therapy from the biotechs. 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. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Is the bull moment over? The Experts debate and provide their
hopes and fears on the technical and economic fronts. More... Using Common Sense to Manage your Portfolio Kevin Matras shows how monitoring the stocks you’re in can be as
important as picking the stocks you get into. It’s simple common
sense but it can make all of the difference. He also gives out
three top picks from some of his winningest screens. 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 PolyOne Corp. (POL) - Debt Cut, Profitability Restored Synopsys, Inc. (SNPS) - Continued Earnings Disappointment Falling Dollar Helps Latin American Growth Strength in Steel Tempered by Costs Fourth Quarter Preannouncements On Deck 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: 19 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, Schaeffers Investment Research, to provide you the best options commentary, research and trading tools on the market today. Read below more on Schaeffers Tools to Profit with Options. One stock that caught our eye in the High Open Interest Position – Calls section was Cisco Systems (CSCO). CSCO was not only ranked once, but twice, in the Open Interest Calls list. Now remember - it is Key not to rely on one filter as gospel, instead to be sure to compare and compare again one filter against another. With the before line as our mantra, we can reflect that we have read recent Schaeffer’s commentary pertaining to CSCO. Combine that, with research on the crowd’s feelings toward CSCO through their recent market activity, and we may have a “mover?” Now let’s do more research and review the commentaries to solidify our view: CSCO is one of the largest, most well known tech companies in the world. Its CEO John Chambers reached near rock star status in the late nineties when CSCO was the most valuable company in the world. Now years later the crowd still loves the stock even though it has lost over 21-percent this calendar year. From our contrarian point of view, weak performance amid optimistic sentiment is a warning sign that the underperformance may just be beginning. After a closer look at the data we find that there is a huge amount of calls at the January 20 strike. In other words, investors are extremely optimistic that CSCO will go higher over the next month and a half. Ryan Detrick, author of Schaeffer's Opening View, suggest that "A very large amount of calls at a strike can act as a huge level of resistance at that price." Meaning that from our contrarian-based approach, with CSCO trading near $19.40 currently, it will be very hard for the shares to move above the $20 level going forward. Next - let’s compliment our research by comparing and comparing again our selection against other facts and filters (sound familiar … it should!). So far we know that CSCO is on the High Open Interest Position list, but that's not the only place CSCO pops up in our filters, as the January 20 call can also be found on the daily most active list for Wednesday, December 1. This shows that the optimism could very well be building going into the end of the year. Now let’s compare our findings still further with the Zacks.com Ranking System. When we plug CSCO into the Zacks system we find that the Street is bullish on the shares as well, as there is only one sell out of 32 total recommendations. Add it all up and everyone seems to love this underperformer. What does it all mean? Well, remember that ANY option play is a gamble and that no system is totally fail-safe - however, this particular stock looks like a contrarian's dream and that it is ready for some kind of downward move. So this information, combined with the results from our filters, would encourage us to possibly take part in buying puts and in turn, playing the move against the calls. You must decide; rather to jump or not – so, do you feel froggy? Good Luck with your trading and remember to use the Option Filters, provided by SchaefferResearch.com, found at Zacks.com: to analyze, interrupt and help determine your course of action – we will review our CSCO play next week to see how we did. Happy Holidays! To learn more about the Unusually High Option Volume, click here. a) Signs Point to Strong December Ken Trester and his team expect a bullish December. Use a pair
of this expert`s option trades to stay on the path of profitability
and start next year on the right foot. More... Dr. Edward Olmstead says market breadth can be a useful indicator
for investors. Learn how to measure for such a characteristic, and
read about this expert`s option play of the month. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Zacks #1 Stocks on the Move 05/17/2013
| Company Name | Symbol | %Change |
|---|---|---|
| VIASAT INC | VSAT | 19.35% |
| OLD SECOND B | OSBC | 5.76% |
| GAMCO INVEST | GBL | 4.61% |
| CORNING INC | GLW | 4.47% |
| SYNCHRONOSS | SNCR | 4.23% |
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