IBD's Fastest Growing, Top Rated Stocks

Here is IBD's list of fastest growing, top rated stocks. This is by no means a buy list.

1. GOL Intelligent Airlines (GOL)
2. Ceradyne (CRDN)
3. Edge Petroleum (EPEX)
4. ASV (ASVI)
5. Gilead Sciences (GILD)
6. Armor Holdings (AH)
7. Companhia Vale do Rio Doce (RIO)
8. Ultra Petroleum Corp (UPL)
9. Click Commerce (CKCM)
10. Cognizant Technology Solutions (CTSH)

To view the full article click here.
Note: I am long Gilead Sciences (GILD)

Google Finance Coming?

There have been quite a few rumors that Google will launch a website to compete with Yahoo Finance. I personally can't wait to hear what Google has to say at their annual analyst meeting this Thursday. Here is a link to the rumor about a Google.com/Finance

I wouldn't be suprised if Google then goes after WebMD.com and tries to create a health related site.

Random Readings

Apple could bid for Disney: Barron's

Google Talk Turns to Finance Site

Mittal Chief: Takeover Opposition Softens

Investment trends merging

Dividend ETFs take different routes to provide income

Barron's Touting Interactive (IACI)

Watch for the Barron's bounce on Monday for Barry Diller's internet conglomerate Interactive Corp. (IACI). I think Interactive Corp. is an interesting mix of dot.coms. The individual components actually have a nice mix of value and growth. Comparing IACI to a Tyco or Cendant, I would much rather own IACI. With IACI you get Ticketmaster, The Home Shopping Network, Ask.com, Lending Tree, Bloglines, Match.com, and many other sites. Plus CEO Barry Dillar still owns a large chunk of the outstanding shares (20+% of the float). Legg Mason Value Trust manager Bill Miller and a few other Legg Mason funds continue to buy shares of Interactive Corp.

Herb Off The Hook - For Now

If you already haven’t heard that Marketwatch.com journalist Herb Greenberg received a subpoena from the SEC, now you know. I personally enjoy reading Herb's work. It's good to see that someone in the media is skeptical most of the time about certain companies. Recently Herb wrote on his column that the SEC is not going to seek his unpublished communications that have come under fire.

I find it rather ridiculous for a company (Overstock.com) to blame the media (Greenberg and others) for knocking down the price of its stock. If your company isn't profitable or at least isn’t hitting its targets then negative articles should be written. In the end, the investor makes the decision to sell a particular security, not the journalist. SEC, leave Herb alone!

Stock I'm Watching

Here is a brief list of some of the stocks that I am eyeing to go long.

Brokers
Etrade (ET) & OptionsExpress (OXPS)

Metals
Southern Copper (PCU)

Real Estate: Technology
Equinix (EQIX) & Digital Realty Trust (DLR)

Security
LaserCard Corp (LCRD)

Technology
JDSU (JDSU) & Corning (GLW)

Note: I have no position in any of these stocks as of 2/24/06.

Data Storage Device Stocks Oversold

I have been looking to get into either Seagate (STX), Maxtor (MXO), or Western Digital (WDC). The prices look right to me at these levels. You will see modest EPS growth and a below market P/E. The technicals look oversold especially on Western Digital (WDC). Although the volume has been heavy for all three on the downside. You can play the arbitrage game with Maxtor (MXO) and get a nice premium.

Marvell Technology (MRVL) Call Option

Purchased (1) March $60 call option for Marvell Technology (MRVL) today. After the bell, earnings beat estimates by a penny and MRVL raised guidance for Q1 2006. Should be interesting to see where it opens tomorrow.

Bank Stocks Near Breakout

The Financial Select Sector SPDR (XLF) is right on the verge of breaking out to new highs on above average volume. Also keep an eye on the Broker/Dealers as they are again making all-time highs (BSC, GS, LEH).

Titanium Bulls Roaring

I have been long Titanium Metals (TIE) since October 2005. TIE was the best performing stock in 2005. Yet while Titanium Metals' shares were up over 400%, insiders continue to accumulate shares on the open market. I am surprised Boeing (BA) has not acquired TIE yet. Especially considering that Titanium Metals is their number one supplier of titanium.

Recent Purchases
Harold Simmons: Chairman & Director Bought 75,000 @ $34.25 (Split Adjusted) on 2/15/06
Harold Simmons: Chairman & Director Bought 145,000 @ $34.66 (Split Adjusted) on 2/14/06
Norman Green: Director Bought 4,000 @ $33.76 (Split Adjusted) on 2/14/06

Harold Simmons and Norman Green have made other purchases from September 2005-October 2005 and are up over 100% on some those purchases.

Aircraft demand pushes titanium sky high, buyers say


Note: I am long TIE

Who will benefit from the Playstation 3?

Merrill Lynch recently put out a research report indicating the companies that are suppliers to Sony for building the PS3. The main focus of the article was the high production costs of the PS3 and the potential for production delays that could negatively impact suppliers and game publishers.

PS3 Costs at Launch

• IBM Processor $230
• NVIDIA RSX @ 550MHz $70
• Blu-Ray $350
• 256 XDR Main RAM $50
• 6 Ports $5
• Gigabit Ethernet $5
• WiFi 802.11 b/g $5
• Bluetooth 2.0 $5
• Analog IC/ASICs $80
• TOTAL $800

Source: Merrill Lynch

Sony Suppliers

IBM (IBM), NVIDIA (NVDA), and Marvell Technology (MRVL)
Game Publishers
Activison (ATVI), Electronic Arts (ERTS), and THQ (THQI)

Latin American Stocks Are En Fuego

Investing in emerging markets can be a risky choice but can pay off with substantial rewards. For my own personal portfolio I have owned Banco Bradesco (BBD) and America Movil (AMX). There are many great Latin American stocks but the safest way to play Latin American is through an ETF (Exchange Traded Fund) called iShares Brazil Free Index (EWZ). There is quite a bit of buzz regarding Brazil and Marketwatch has a bullish article on Latin America.

Trend Trader

Philip has a great blog called Trend Trader that I suggest you take a look. He really puts a lot of effort into his posts. When you have some free time check out his blog.

The Hypothetical Portfolio

I am participating in a little investment challenge for the next two months. I was given $1,000,000 hypothetical dollars. The maximum number of shares per transaction is 10,000 and the brokerage commissions are 1% of the order. This pretting much eliminates stocks under $10. Last time I did this I got fourth place out of about sixty participants.

Short Term Hypothetical Portfolio
Buy 2,000 Fluor (FLR) @$81.38
Buy 1,000 Lehman Brothers (LEH) @147.08
Sell Short 10,000 China Natural Resources (CHNR) @ $15.73


Note: This is NOT a real account

China Natural Resources (CHNR) Gets Delisting Notice

It didn't take long for CHNR to get a delisting notice from the Nasdaq Stock Market Company. February 22nd is the official date that CHNR will trade on the pink sheets. I have been short CHNR for a over a week. I would look at shorting more at these levels.

S&P 500 Chart

I am not buying this move up in the S&P 500 until I see a nice breakout above 1290. Will HP's earnings be enough to take the broader market higher?

Quick Look At Gold

Looks like gold is giving a buy signal. Trading right near the 50 moving average. Look for further support at 130 and then 120.

Today's Stock Market Action

The Dow is looking short term overbought. It has gotten some help in 2006 from AT&T (T), Merck (MRK), Pfizer (PFE) and other hated names in 2005. I am watching the S&P 500. A break above 1290, would break the downward trendline.

From Nasdaqtrader.blogspot.com:
"CNBC is frothing at the mouth here and of course pumping the move like it's the next coming of Christ. Pleazzzz CNBC we know your game your in the pocket's of your advertisers the big brokerage houses and we know the gig. Oh and don't you love the "it's the oil being down" reason? Give me a break, oil has declined $9 and now we get the big move?"
-Roberto: Author of NasdaqTrader.Blogspot.com

Top Rated Stocks Under $10

I am not a big fan of stocks under $10. Bema Gold (BGO) is the only stock under $10 that I own. I am looking at JDSU but feel that JDSU is fairly valued at $3.00. If JDSU were to fall to $2.50 I will consider buying it.

Investor Business Daily
Highest Rated Stocks Under $10

1. Comtech Group (COGO)
2. Synergetics USA (SURG)
3. Vaalco Energy (EGY)
4. American Oriental Bioengineering (AOB)
5. Technology Research (TRCI)
6. ADDvantage Technologies Group (AEY)
7. Art Technology Group (ARTG)
8. Tandy Leather Factory (TLF)
9. New Dragon Asia (NWD)
10. Taseko Mines (TGB)

This list is by no means a buy list. Invest at your own risk. Full Article.

Random Readings

Google shares may fall another 50 percent-Barron's

PayPal Prepares For a Challenge From Google (WSJ)

Lexus Recall Brings iPod Nano Windwall

Gas Prices Drop

MySpace Rises As New Online Star

Laggards Push Indexes Higher

I didn't like today's move up. Pfizer (PFE) (Up 5.74%) & Verizon (VZ) (Up 3.47%) inflated the Dow while Cisco (CSCO) (7.24%) and Dell (DELL) (6.16%) inflated the Nasdaq. Most of the leaders had a flat or down day see: AMD, MRVL, BRCM, ABX, JOYG, PCU, DO, & GOOG. Today's move higher is overdone by the bulls. I would not want to own Pfizer, Verizon, Cisco, or Dell. They are hardly showing any earnings growth, no new groundbreaking technology, and every mutual fund already owns them.

Investors Business Daily Founder Bill O'Neil

I am a big fan of Investors Business Daily and try to mimic a lot of Bill O'Neil's CANSLIM investing strategies. He has definitely helped me with technical analysis and spotting proper buy points. I have read two of his books and subscribe to IBD. I would put him on the top ten list of best traders/investors of all-time. He had a recent interview on Marketwatch.com (bottom right). Definitely worth a listen.

Some highlights from the interview

• US market looks healthy with brokers leading
• Favors internet, engineering, & brokerage stocks
  
• New/recent issues will lead the market higher
  

Sold To You: China Natural Resources (CHNR)

This morning I sold short my first stock in my young trading career (15+ months). China Natural Resources (CHNR) is sold to you my friend. This could be one of the worst companies in Wall Street history with the exception of Overstock.com and a few others. When a company changes their name to deceive investors and then the new company name has nothing to do with the business. I will throw a red flag CHNR and sell it short on both fundamental and technical analysis. I am just starting to get my feet wet with shorting stocks.

Note: I am short CHNR

A Closer Look at China Natural Resources (CHNR)

First off, I am drooling to short this China Natural Resources (CHNR). It might be the first thing I do on Monday morning. Don't let the name of the company fool you. This is NOT an oil, gas, or precious metal company.

From Yahoo Finance :
CHNR "...provides advertising, promotion, and public relations services in Hong Kong and Mainland China."

I don't think advertising counts as a natural resource.

CHNR is acquiring a mining company that made $5 million in 2004. There is no financial information for 2005 on Feishang Mining. 4,500,000 warrants will be issued along with CHNR common stock to Feishang Mining shareholders. CHNR claims to have 1,250,000 shares outstanding as of 2/4/06 (Source: Yahoo Finance).

CHNR Facts

• No financials for 2005
• Never made a profit in company history
• No company website/investor relations
• No institutional ownership
• "Deal" with Feishang Mining Holdings Ltd will dilute “earnings”

China Trash Stocks Moving

The speculative China stocks listed below have moved upwards of at least 50% in the past week. Trader Mike also has a post about the below stocks. They all look like good shorts; no earnings, no real business, and overbought.
The Short Candidates
CDC Corp (CHINA)
China Development Group Corp (CTDC)
China Automotive Systems (CAAS)
China Energy Savings Technology (CESV)
China Natural Resources (CNHR)

Short At Your Own Risk

Bema Finds More Gold

Bema Gold Corp (BGO) put out a press release stating that they discovered additional gold and silver reserves at their Julietta Mine in Far East of Russia. Good news for Bema shareholders. Gold stocks have had a nice run in 2005 and 2006. I continue to stay long Bema Gold Corp (BGO).

Cleveland-Cliffs (CLF) Call Option

Today I purchased a Cleveland-Cliffs (CLF) in the money call option. They report earnings on the 15th. CLF has a small float, no debt, and is showing strength today as some of the other metal stocks are off their highs.