Sunday, October 21, 2012

Trading Picks


Sunday, October 14, 2012

Trading Picks


Saturday, October 6, 2012

Trading Picks


Tuesday, October 2, 2012

Sunday, September 23, 2012

Trading Picks

My picks for September 21, 2012.


Sunday, September 16, 2012

Trading Picks

My picks for September 14, 2012.


Sunday, April 1, 2012

Trading Picks for April

We are continuing our series of suggesting several companies for further study. The companies listed below share several characteristics: the generate meaningful free cash flows which we consider very important, they are very profitable as measured by return on equity and they appear to be undervalued when the Enterprise to EBITDA metric is used. These companies also share one additional characteristic. Namely, they are recognized by the market and trade at or near their fifty-two week highs. Each of these companies has had a big run-up in share price. We need to ask if this run will continue. For this reason, we look at these companies as trading opportunities and not long term investments. They need to be monitored closely for changes in sentiment and underlying fundamentals.



Disclosure: The author has a long position in XOM.

Saturday, February 25, 2012

22 Attractive Trading Opportunities


Each of the following companies generates plenty of free cash flow, is inexpensive based on enterprise value to EBITDA and is profitable. The companies are also showing signs of price momentum and are trading near their 52-week highs.


This list is just a starting place for your own due diligence.

Disclosure: I have a long position with MDF.

Saturday, February 18, 2012

Five Long Term Investment and 18 Trades


In an article recently published by Seeking Alpha a reader commented that a recommendation was better suited as a trade rather than a long term investment. I had expressed the same thoughts in the article by stressing that the stock required close monitoring and that the upside was limited. This exchange suggested to me that I could more clearly distinguish between my selections for long term investment and picks that are more suited to trading.

This first group of companies is suggested for the long term. Each of these companies exhibit strong operating results over the last five years. They grow earnings, free cash flow, sales and equity at a rate of at least seven percent. Analysts estimate earnings will grow at a minimum rate of seven percent over the next 3-5 years. Balance sheets appear solid with little or manageable levels of debt.


 
On the other hand, there are companies better suited to a more active trading profile. Each of the following companies generates plenty of free cash flow, is inexpensive based on enterprise value to EBITDA and is profitable. The companies are also showing signs of price momentum and are trading near their 52-week highs.


 
Lists such as these are just starting points for more detailed analysis and should not be taken as a recommendation. Due diligence is always required.

 
Disclosure: I have a long position in MDF and may initiate a position in other stocks mentioned here.
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