To: Slugger who wrote (10560 ) 6/27/1999 8:53:00 PM From: Tharos Read Replies (2) | Respond to of 17367
Yeah, You'd think an educated woman would learn to wax herself ;-). From a free market-letter, walks the wilder side of investing--US Pink Sheets, Vancouver Stock Exchange, Alberta Stock Exchange--but I found this interesting. Perspectives Weekend Edition - Jun 25 **Note: In recognition of the US and Canadian National Holidays next weekend (and my short vacation plans), there will not be a Weekend Edition next weekend. Our column will resume the weekend of July 10th. Thanks.** Commentary The trend is your friend. A good way to find opportunities is a top down approach in which the investor determines which sectors of the market look the best and then works to find the industry leaders in those sectors. By starting at broad market indices, the investor can drive down to opportunities by latching onto the sectors that look to have the upward trend. This week, we thought we would highlight some market sectors that look like they have good potential to lead the market in the near term. Biotechnology Perspectives Rating - 6/10 - has been trading sideways for some time, but the market seems to be getting more optimistic about these stocks. Look for industry leaders to break to new highs. Computer Software Perspectives Rating - 7/10 - has already done quite well the past two weeks, it looks like it can continue to move higher although we may see a bit of weakness in the next couple of weeks before the resumption of an uptrend. Consumer Products Perspectives Rating - 7/10 - we use the Toronto Stock Exchange Consumer Products Index as the benchmark here, the index broke to new highs this week and looks good to continue into an uptrend. Tobbaco stocks are leading the way. Dow Jones Industrial Index Perspectives Rating - 4/10 - the world wide benchmark for stocks, the Dow looks more likely to head lower through the summer, perhaps moving to as low as 9500. The big companies are feeling the effects of the threat of an interest rate hike. Technology Perspectives Rating - 6/10 - I use the Goldman Sachs Technology Composite index as a good indicator for the health of the broad technology market. Overall, this sector of the market looks strong after about 6 months of sideways trading. Good potential to see a break into an uptrend in the weeks to come. The Internet stocks have been the weak performer of this broad sector so far this year, but look to be finding some support and could rally higher from here. Semiconductors (8/10) look strong as does Software (7/10). Russell 2000 (Small Cap stocks) Perspectives Rating - 6/10 - the small cap stocks look to be doing all right, which makes sense since they will have less correlation to the broader market and raising interest rates. Upside potential a little bit limited, however, we could see the US Small Cap stocks lead a summer rally of about 20%. The Scores - What They Mean --------------------------- A score of 7 to 10 This stock is worth considering as a buying opportunity. Our analysis indicates that the stock has good potential to go higher in the short term, and is worth taking time to consider. Complete your due diligence on this stock so that you can make your own judgement on the quality of the company before making a decision, and remember that our score is valid for the price that the stock is at when we applied the score. Of course, a score of 10 has more potential than a score of 7, but all stocks in this range deserve your consideration. In addition, if you are short this stock, you should consider covering the short position. A score of 4 to 6 We are neutral on this stock. It may be that the stock has an excellent story, but much of the opportunity has already been priced in. Or, the stock may have seen a great run and is now taking some time to catch its breath. This is a stock worth hanging on to if you bought it at lower prices or shorted it at higher prices. However, because it is in a profit zone, you should be prepared to take profits on the stock if it shows signs of heading against you. Keep a close eye on the stock if you own it, and make sure you dance close to the door. A score of 1 to 3 This stock is worth considering as a shorting opportunity. Our analysis indicates that the stock has good potential to go lower in the short term, and is worth taking time to consider. Complete your due diligence on this stock so that you can make your own judgement on the quality of the company before making a decision, and remember that our score is valid for the price that the stock is at when we applied the score. Of course, a score of 1 has more potential to go lower than a score of 3, but all stocks in this range deserve your consideration. In addition, if you are long this stock, you should consider selling. Subscribing: ------------ Our Weekend Edition is available for free. Anyone who wishes to receive the Weekend Edition can simply send a subscription request to stockperspectives@home.com