Thursday - December 23, 2004
 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=1517. 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.
Stocks continued their upward bias last week. However, unless there are sharp gains over the last two weeks, stock returns will be below that of their historical average. Indeed, stocks continue to have an upward bias despite rising interest rates. However, due to the sustained fourth quarter rally, Insight now considers the stock market to be reasonably valued, although valuations differ among the different capitalizations. Small- cap stocks are generally offering the lowest valuations. It is quite possible that overall valuations will rise further in the short term; however, Jim Collins looks for future performance to be largely driven by earnings growth. The good news is that earnings growth should be somewhat above the long-term historical average in 2005 with small-cap stocks offering the highest potential. The next set of earnings reports will be released in January. Many of the companies in the Dow Jones Industrial Average and in the S&P500 have international operations, and profits from those operations will give a bigger than expected boost to earnings. Every euro earned now converts into about 1.34 dollars….that`s 34% higher than two years ago. Hence, the big indexes should do well in January and early February. If that occurs, small caps will be pulled up with the move. The January ``effect``-an average upward move-may very well occur. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Retails are on track to rise about 3.5% this year. That`s not bad. Through November, retail sales were rising the fastest quarterly clip since the start of this year. Rising payrolls has increased households ability to spend and borrow. Consumer strength in the second half has been a key to resilience of the overall economy. Should stocks suffer a decline, which Collins thinks is unlikely, he would not hesitate to add to positions. American Eagle Outfitters (NASDAQ: AEOS)is a specialty retailer of all-American casual apparel, accessories, and footwear for men and women between the ages of 16 and 34. The company sources, designs, and markets a versatile line of timeless and relaxed clothing classics. American Science & Engineering (NASDAQ: ASEI) develops, produces, markets, sells and provides research and engineering services with respect to, X-ray inspection systems. Alamosa Holdings (NASDAQ: APCS) is a provider of wireless personal communications services, commonly referred to as PCS, in the southwestern and midwestern United States. InfoSpace (NASDAQ: INSP) announced an agreement on Wednesday to acquire Elkware, a German mobile games company, for approximately $26 million in cash. Elkware has more than 90 original and branded game titles for use on mobile phones. The company also will be able to provide InfoSpace with strong international mobile operator relationships. Elkware games are available in over 10 European countries through major mobile operators including Vodafone, O2, Orange, T-Mobile, Telefonica Moviles, 3 and TIM. They also are pre-installed on handsets from Siemens. Autodesk (NASDAQ: ADSK) and Microsoft announced a cross- licensing agreement on Thursday that allows increased access to each company’s respective patent portfolios. The agreement will enable each company to broaden its product offerings and deliver more comprehensive, cost-effective solutions. Through this arrangement, Autodesk and Microsoft will promote the exchange and implementation of patented technologies in many areas, including data management, collaboration, design data management, digital effects, digital rights management, project management, computer-aided design and location-based services. Terms of the agreement were not disclosed. OTC Insight® specializes in growth stocks, particularly in the small to mid-cap range. This monthly publication, which focuses on Nasdaq listed stocks, is a by-product of the research we use to select stocks for our managed client portfolios through Insight Capital Research and Management, Inc.® Learn more about this newsletter and free trial offer at: http://at.zacks.com/?id=342. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Ron Rowland says this year’s Christmas shopping season is a
good news/bad news scenario. Find out why it is a good time to
be a Christmas shopping procrastinator and a bad time to own
retail stocks. Then learn which sectors are making waves in
this expert’s fund portfolios. More... c) Preparing for a January Hangover Kelley Wright discusses some current economic trends and leaves
us with food for thought regarding what the future may have in
store. Read this expert’s investment outlook and learn about a
pair of highlighted stocks. More... Gregory Spear is observing a rotation to consumer staples and
healthcare. Learn about a `Consensus Basket` for the former
sector and learn why it may be more useful that the Consumer
Staples ETF. More... e) Top Stocks for 2005 and Beyond Paul Tracy and his staff have put together ten stocks poised
for a solid performance in 2005 and beyond. Learn about three
of them and get yourself in a good position for the New Year. More... Richard Moroney says investors shouldn’t be playing guessing
games. Instead, they should be working to put the odds in their
favor. Learn how to do so with this expert`s analysis. 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.
2. 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. Of Santa Claus and the New Year Last week, we examined Experts discussion of the likelihood and predictability of a Santa Claus rally and the January effect. However, that 30,000 foot level view becomes quaint each December as traders attempt to determine what the market is doing and will do in the last few trading days of the year and opening of the next year. The Experts are currently applying sentiment and technical analysis tools to time their trades in what they think could turn into a very strong year end rally, yet continue to scrutinize key levels for evidence that the market may have a choppy start to 2005. Learn where you want to be to prepare for the current and coming market moves and the stocks best suited to help you profit in those scenarios. The banner headline for the indices this week is the multi-year high on the Dow Jones Industrial Average hit a three and a half year high, which also represents a new high for the bull market that began in October, 2002. Jack Schannep, editor of Schannep's Timing Indicator & the Dow Theory reminds investors that a new bull market high represents the clearest and most fundamental re-confirmation of his Buy signal. Schannep thinks this is evidence that the Dow will head higher into the new year. Further, the S&P 500 and NASDAQ are within a stone's throw of new highs for the year. 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 A Simple Dividend Strategy with Extraordinary Returns Kevin Matras goes over a winning, longer term, dividend
investment strategy. In both up markets and down markets, this
strategy has been able to show average annualized gross returns
of nearly 30% a year. Find out how (and how to trade it). Plus
get 3 new longer term picks. More... ALL STAR TOP PICKS New Ways to Process Profits from Computer Services The computer services industry continues to grow, thanks to
innovative segments such as transaction processing. The All
Stars can make sure you operate more efficiently in the market
with five recommendations from this burgeoning space. 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 Commerce Bancorp (CBH) - Growth Continues Unabated Gables Residential (GBP) - Dividend Issues Harming Growth Oil Prices to Stay Above Historical Trend Levels Toy Manufacturers Facing Weakened Demand U.S. Economy Takes Comfort in ''Goldilocks Factor''
4. TRADING STRATEGIES: Profit Tracks 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 strategy focuses primarily on Positive EPS Estimate Revisions and Brokerage Rating Upgrades. Over the last 20 years Zacks Investment Research has proven that “earnings estimate revisions are the most powerful force driving stock prices.” Studies have also shown that stocks receiving upward EPS revisions tend to receive additional upward revisions in the future. Then consider that stocks receiving these upward revisions generally have brokers upgrading their Ratings, which is also a proven mover of stock prices. There are other parameters to this strategy, but the Rating Upgrades and positive EPS Revisions are the two powerful active ingredients. This screen focuses on EPS Revisions, along with Ratings and Rating Changes. According to Zacks Investment Research “earnings estimate revisions are the most powerful force impacting stock prices”. Couple that with the proven benefits of upgrades in ratings from brokerage firms and you have a strategy with a compounded return of over 378% over the last few years. (1/5/01-11/5/04) Avid Technology, Inc. (NASDAQ: AVID) develops, markets, sells and supports a wide range of software and systems for creating and manipulating digital media content. For the three months ended September 30, 2004, Avid Technology reported pro forma non-GAAP net income of 58 cents per diluted share. That result topped the consensus by almost +14%, putting it well above the +10% positive surprise that is one of the parameters for this Profit Track. Also, the company’s 5-Year Historical EPS Growth is +104.48%. To continue your research on AVID, click here. General Maritime Corporation (NYSE: GMR) is a leading provider of international seaborne crude oil transportation services within the Atlantic basin. General Maritime enjoys a Zacks Rank of #1, and its easy to see why. Excluding items, the company reported third quarter earnings per diluted share of $1.48, marking a strong advance from a year ago and, more importantly, topping Wall Street’s expectations by more than +17%. General Maritime achieved record revenues, cash flow and earnings for both the quarter and nine-month period, and analysts have taken notice. To continue your research on GMR, click here. Layne Christensen (NASDAQ: LAYN) provides drilling services and related products and services in four principal markets: water- related products and services, mineral exploration drilling, geotechnical construction and oil and gas services and production. All of Layne Christensen’s divisions experienced year-over-year growth in its fiscal third quarter. Net income reached 27 cents per share, marking a positive earnings surprise of as much as +35%. Its 5-Year Historical EPS Growth is at +136.40%, while the parameter for this Profit Track only calls for a +17% growth. The company said it is positioned in sectors of the economy that are currently very attractive. To continue your research on LAYN, 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 5. ZacksAdvisor.com TIMELY BUY of the WEEK Adobe Systems (ADBE) No bricks in this company's business plan. At the forefront of the desktop publishing software industry, Adobe Systems offers the ubiquitous Acrobat Reader (distributed free of charge), a tool that displays portable document format (PDF) files on the Internet. The company's Web and print publishing products include Photoshop, Illustrator, and PageMaker. Adobe's offerings also include print technology geared toward manufacturers, as well as Web design (GoLive) and electronic book publishing software. Its InDesign publishing package provides professional layout and design applications. Adobe's Professional Services group offers implementation, training, and support. Adobe Systems Inc.'s income rose 62 percent in its latest quarter on stronger-than anticipated revenue growth. In the fiscal third quarter ended Sept. 3, Adobe earned $104.5 million, or 44 cents a share, on revenue of $403.7 million. In the same period last year, it earned $64.5 million, or 28 cents a share, on revenue of $319.1 million. Excluding an investment loss from the company's venture program, earnings rose to $105.6 million, or 43 cents a share, from $66.3 million, or 28 cents a share. Third-quarter results beat the company's most recent forecast. In early August, Adobe raised its third quarter earnings outlook to a range of 36 cents to 41 cents a share, citing higher revenue from Adobe Photoshop and Acrobat software. Adobe anticipates fourth-quarter revenue of $400 million to $415 million, beating Wall Street's expectations of $389.3 million and last year's $358.6 million.
On 12/17/04, UBS said it is increasing its estimates on ADBE for 2005 to $2.04 a share from $2 a share after the company beat estimates for the fourth quarter. Target price raised to $73 a share.
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. 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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