Stockscom Report for Sunday May 20 2007
Publisher: Colin Alexander
Editor: Ken Wilson (450-691-4617)
Subscriptions and Administration: Pierre Fichaud (toll-free: 866-487-9711)
- ·
Strong technicals persist in boosting stock
markets
Technically Speaking
The broader large cap markets, the S&P 500 and the DJ-30, sustained their
unlikely climb into its seventh consecutive week. The Nasdaq twins both finished
higher on Friday but closed just short of also marking new gains for the week.
Volumes on the Dow were reasonably strong, especially so on Friday’s rise, while
the other indexes were left to contend with three losing days out of five and
volumes that left traders perplexed owing to the volume increases with
directional changes.
The S&P 500 remains the index to watch as it approaches its all-time high near
1553, a scant 31 points from its current location. The pull of the all-time high
has become irresistible and while it may take a breather between now and then,
it certainly will not stop, barring a climactic outside event. Though China’s
move this week to reign in “irrational exuberance” could elicit a dampening
response through their stock markets, it would seem unlikely at this point to
cause widespread damage. More likely is that China’s markets continue higher
unabated until some unrelated event triggers a slide. With 300K more
participants per day in Mainland China’s stock market, it will understandably
take a far greater incident than the mild tightening of lending requirements for
gravity to act on these markets.
The tech sector, a mere shadow of its former self, retains the title of laggard
as it presses to reach the 50% level of its all-time high. The Nasdaq Composite
has indeed managed to attain this not-so-lofty target however the Nasdaq-100 has
yet to claim the same status. Interestingly though, on a short term basis, the
Nasdaq is finding support from technical levels such as the February highs but
this amounts only to a diversion from the new “tech shares”, which are raw
materials and related industries.
New Buy Recommendations (in order of preference):
Gerdau Ameristeel (GNA) This steel producer recently announced first quarter
results that largely exceeded expectations and while the stock enjoyed an
initial jump, it now appears prepared to launch stage two. Friday’s jump on
increasing volume indicates that the retracement of the first movement has ended
and we expect that the price will now extend its solid gains of the past month.
New Short Sales
None.
Stock Positions to Sell/Exit:
We were exited from Regeneron Pharm (REGN) this week as the stock price spiked
lower on heavy volume.
Portfolio Comments:
New stops have been added to the list while others have been modified. Those
that have blanks are being carried unstopped for now. Please see our complete
list of stops in the table below.
List of Current Stock Recommendations:
Action Ratings. The following is the legend for designating immediate action
for our stock recommendations. The first is B, meaning the stock is timely
to buy but the case for doing so right here is not overwhelming. Either the
stock may have gotten ahead of itself and may be vulnerable to a retracement or
else the stock has been performing disappointingly but may simply be
regrouping. B+ and B++ indicate stocks for which there is a technical case
to buy now, with plusses adding weight according to how many there are, up
to a maximum of two. Stocks rated H are ones to hold, awaiting confirmation
to buy more or to sell. SELL, of course, means what it says. It seldom pays
to override this designation. In the case of stocks held short, the rating is S
where positions should be retained. S+ and S++ indicate stocks for which there
is a technical case to add to the positions with plusses adding weight similar
to long positions. The maximum number of plus signs is 2.
N.B. There are no longer restrictions on foreign stocks held in Canadian
retirement savings accounts.
| Date of Entry
|
Name |
Symbol |
Entry Price |
Current Price |
Stop |
Action Rating |
| 04/30/07
|
Allied Waste Ind. |
AW |
13.37 |
13.29 |
12.00 |
B |
| 04/09/07
|
Cameco Corp. |
CCJ |
46.22 |
50.05 |
42.00 |
B |
| 12/26/06
|
Cheniere Energy |
LNG |
29.15 |
35.74 |
31.90 |
B |
| 01/16/07
|
Echostar Comm |
DISH |
40.36 |
49.24 |
44.00 |
B |
| 03/26/07
|
Fronteer Dev’t Grp |
FRG |
12.40 |
12.72 |
11.00 |
B |
| 11/13/06
|
Goodyear Tire |
GT |
18.00 |
34.98 |
30.00 |
B |
| 03/12/07
|
Grant Prideco |
GRP |
46.75 |
57.01 |
50.00 |
B |
| 05/07/07
|
Intercont Exch Inc. |
ICE |
138.48 |
139.18 |
120.00 |
B |
| 04/09/07
|
Matrix Service Co. |
MTRX |
24.28 |
25.85 |
23.00 |
B |
| 04/16/07
|
Merck & Co. |
MRK |
50.01 |
53.25 |
46.00 |
B |
| 14/05/07
|
NA Galv. And Cts |
NGA |
14.70 |
15.40 |
13.00 |
B |
| 04/30/07
|
Portfolio Rec. Ass. |
PRAA |
56.17 |
52.51 |
49.00 |
H |
| 04/23/07
|
Regeneron Pharm |
REGN |
25.75 |
23.45 |
23.45 |
SOLD |
| 04/23/07
|
Synalloy Corp. |
SYNL |
36.39 |
39.65 |
30.00 |
B |
| 05/14/07
|
Titanium Metals |
TIE |
39.52 |
37.60 |
35.00 |
H |
| 03/19/07
|
Tsakos Energy Nav |
TNP |
49.50 |
59.14 |
50.00 |
B |
| 03/26/07
|
Vasco Data Sec’y |
VDSI |
17.92 |
20.40 |
18.00 |
B |
New stops in BOLD
* Stop on a closing basis
** Buy if above entry price
*** Split-adjusted price