TA/FA Sponsored Stocks:
1. CBS 29 7/8, 12 mo 18 -36 5/8. 50 dma 29, 200 dma 26, stock should encounter resistance at 32-33. Stochastics are very high. CBS has a lot going for it: reported better than expected earnings, has new ceo who is very dynamic and focused, just added to S&P 100, will be spinning off 20% of Infinity Broadcasting late Nov, early Dec, and has a large share buy-back program underway.
2. DOL - Dole Foods 34 1/16 12 mo 29 3/8 - 57 5/16. 50 dma 31 1/2, 200 dma 33 1/2. Stochastics in middle of nice rising slope. DOL reported poor earnings (which it had warned about) and also reported that Hurricane Mitch had devastated the banana crop in Central America. Earlier, had reported that because of Russia's economic weakness, there was a surplus of bananas. looks like mitch took care of the surplus. DOL is a world class food company, which by definition is cyclical. This is a down time and a time to buy. Today if filled the gap from 35 to 29 of mid october, now look for it to trade to the 38-39 area where there is a lot of resistance. Longer term, excellent core holding and a very attractive price now.
3. G - Gillette 47 1/2 12 month 35 5/16 - 62 5/8. 50 dma 47, 200 dma 44. stochastics are extended. World class consumer products co. Got knocked down on poor than expected reaction to new razor, which it invested big bucks in, plus stock had a high multiple (still does) based on past consistent growth and institutional favorite. target is 50-52 area.
4. GLM - Global Marine 13 5/16 52 week 8 1/4 - 34 5/8, PE 9.22. 50 dma 12.50, 200 dma 11.87. double bottom at 8 1/2, triple resistance formation right here at 13. GLM is an oil service co, primarily shallow water drilling. Deep water drilling better sector, as shallow is more susceptible to oil prices. I am bullish on oil and oil service sector here, feeling that while the price of oil is low, and many of pauls friends are living on the streets, it seems that such utter contempt for the sector is a sign of a major bottom, in stock prices, if not in oil prices. Also, we are seeing some takeovers in this sector, and think we will see a lot more. Target is 15 1/2- 16 short term, and 18-20 longer term.
5. MUEI - Micron Electronics 22 1/8, 52 week 8 7/16 - 24 3/4. One of the sweetest graphs i've ever seen. Lot of support in the 13-16 range, then major break-out to above 20. 50 dma 21 1/2, 200 - 19. Stochastic extended. MUEI sells excellent computers direct to consumers. Is comparable to Dell in quality. Is 60 % owned by MU. Suffered under poor management; last year brought in top ex-Dell Ex-Power Computing guy and his staff. Now focused, good advertising, good production. Going for grand slam on this one. target 35-60. might sell sooner. ggg
6. SPTR - Spectran 5, 52 week range 3 3/4 13 1/4. 50 dma 4.7, 200 dma 4.5, both have turned up in past weeks. 200 dma was resistance all year, now looks to be support. same with 50 dma. Stochastics are rising and have room to go. SPTR is a manufacturer of Fiber Optic material. Stock fell from 20s last year when GLW (Corning, Inc) announced slowing of growth of fiber optic sales. GLW has recently rebounded sharply from mid 20s to 40 area. Think that SPTR will mirror GLW on the way up. See 6 as resistance, then 7 1/2 - 8. Recently reported lower earnings than prior year, but still had earnings. This is a little stock that could move big.
Other attractive ideas: MME - Midlantic Medical, big move today, UNP - Union Pacific - in major recovery mode after disasters resulting from merge with other railroads. CD - Cendant - acting very nice, mid 13s, on the way back to 20 area, IMO.
happy hunting. larrry |
