HOME ZACKS RESEARCH FUNDS PORTFOLIO BROKER RESEARCH MARKETS SCREENING VIDEO EDUCATION SERVICES
Quote:
Login Free Membership
Search:

Press Releases  

Zacks.com featured expert Kevin Matras highlights: Houston American Energy Corp., LogMein, Inc., MicroStrategy Inc., RealPage, Inc. and Sina Corp.

Share
By: Kevin Matras
October 04, 2011 | Comment(s): 0
Recommended this article (6)
HUSA | LOGM | MSTR | RP | SINA

Chicago, IL – October 4, 2011 - Stocks in this week's article include Houston American Energy Corp. (AMEX: HUSA - Snapshot Report), LogMein, Inc. (NASDAQ: LOGM - Snapshot Report), MicroStrategy Inc. (NASDAQ: MSTR - Snapshot Report), RealPage, Inc. (NASDAQ: RP - Snapshot Report) and Sina Corp. (NASDAQ: SINA - Analyst Report). Kevin Matras pulls out his Toxic Stocks bearish screen that gained over 120% in the bear market of 2008, and shows how you might use it this year.

Screen of the Week written by Kevin Matras of Zacks Investment Research:

2008 was one of the worst bear market years in recent history. And there was almost no place to hide.

To be sure, there were still bullish strategies that made money, but it was a brutal sell-off and almost nothing was safe.

Back then, the short-sellers cleaned up.

With the market now approaching bear territory once again, it's time to pull out a screen I was running back then. And it's called Toxic Stocks.

The main theme of this screen is to find overvalued companies.

Granted, even undervalued companies were getting hammered then (not to mention downright great companies too), but usually the best opportunities for short-selling are the ones that are overvalued on valuations, underperforming on growth and are receiving downward earnings estimate revisions.

So how did it do?

In 2008, this strategy, using a 4-week rebalancing period, produced an average compounded return of over 120% while the market plummeted nearly -40%.

In fact, even if you didn't start trading this strategy until the official beginning of the bear market, which began in July of 2008 (a bear market isn't officially called until it goes down by -20% or more), the strategy still produced an average annual return of over 70%.

And it's not too late to consider this one now.

For the rest of this Screen of the Week article, please visit Zacks.com at: http://www.zacks.com/commentary/19010/

Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don't wait for the market to get better before you decide to do better. Start learning how to be a better trader today: http://at.zacks.com/?id=5529

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here http://at.zacks.com/?id=5530

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros http://at.zacks.com/?id=5531

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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.

Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
support@zacks.com
http://www.zacks.com

 

Read the full analyst report on HUSA

Read the full analyst report on LOGM

Read the full analyst report on MSTR

Read the full analyst report on RP

Read the full analyst report on SINA

 

Please login to Zacks.com or register to post a comment.



Email

Print

Share

Rate Pos

Rate Neg
Attn. Zacks.com Visitors
7 Best Stocks for the Next 30 Days
Get your free Welcome Gifts today*:
 1.  Special Report with best short-term Zacks recommendations from the list that averages a gain of +26% per year
 2.  Our free e-newsletter with 4 "Strong Buy" stocks, Bull & Bear of the Day, and market commentary in every issue.
Get them free right now
  
No cost. Unsubscribe anytime. Privacy Policy
*Only for non-members. May end at any time.

More Zacks Resources

Market Summary May 26, 2012 14:28 pm ET
DJIA 12454.83  -74.92 -0.60%
NASD 2837.53  -1.85 -0.07%
S&P 500 1317.82  -2.86 -0.22%
Partner Center