The Stock Playbook : Foreign Stocks

Issue: 6/2/2008

Dave Dispennette — Tue, 03 Jun 2008 02:11:00 GMT

Foreign Stocks

APWR @ $23.43 (A-Power Energy) is a Chinese provider of distributed power generation systems to factories and users in China. Revenues have increased 55% during the last four quarters as earnings grew 100%. They are expected to announce earnings on Friday, so we will establish half a position here and add the remaining half after their earnings announcement, hopefully on a pull back to the $20 level. Our stop loss will be set at $18.

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Issue: 5/19/2008

Dave Dispennette — Mon, 19 May 2008 21:30:00 GMT

Foreign Stocks

NETC @ $15.59 (Net Servicos De Comm) is the provider of cable TV services throughout Brazil with more than 1.8 million subscribers passing through 7.2 million homes. Revenues have increased 53%, 74%, 81% and 74% during the last four quarters. earnings are expected to grow 68% this year and another 60% in 2009 to 0.75 cents a share. The company has come a long way since we first recommended it on 9/8/05 at $4.13 before they announced their first profitable year. For anyone that doesn't own it at those levels, we feel establishing half a position here and buying the remaining half on a pull back to $14 with a stop loss set at $13.25 will yield a nice return over the next few years.

Issue: 5/15/2008

Dave Dispennette — Fri, 16 May 2008 02:48:00 GMT

Growth Stocks

FSYS @ $25.26 (Fuel Systems Solutions) produces alternative fuel components used in engines for the industrial, transportation and power generation industries. Revenues have accelerated 15%, 18%, 53% and 73% during the last four quarters. Earnings are expected to grow 34% this year and another 16% next year, but we feel estimates may be low. We are establishing half a position here and will add the second half of position on a pull back to $22.

Foreign Stocks

GSI @ $11.90 (General Steel Holdings) is a Chinese manufacturer of hot-rolled carbon and silicon steel sheets for distributors, service centers and manufacturers. Revenues have increased 82%, 312%, 635% and 531% during the last four quarters. Earnings have increased 100%, 500%, 999% and 750% during the same time frame and are expected to grow 86% this year and another 25% in 2009 to $1.16 a share. GSI came public in October and appears ready to emerge from its first base. We are establishing half a position here and will enter the remaining half on a pull back to the $9.75 level, which could as soon as tomorrow. We saw a few trades in the after market around $9.75, but haven't found an explanation for it.

Issue: 5/12/2008

Dave Dispennette — Tue, 13 May 2008 01:59:00 GMT

Foreign Stocks

CTRP @ $62.74 (Ctrip.com) is a China-based consolidator of hotel accommodations and airline tickets targeting individual business and leisure travelers. Revenues have accelerated 54%, 59%, 63% and 69% during the last four quarters. Earnings have also accelerated, rising 33%, 57%, 73% and 107% during the same time frame an dare expected to grow 41% next year to $1.52 a share. With earnings on Wednesday and Priceline's recent strength after another strong quarter, we would like to establish half a position before earnings and add the remaining half on any weakness after earnings that brings the stock into the $57 area. Our stop loss will be set at $52.

Issue: 5/4/2008

Dave Dispennette — Mon, 05 May 2008 03:58:00 GMT

The Playbook 100

NETL @ $33.59 (Netlogic Microsystems) designs knowledge-based processors used to accelerate delivery of wireline and wireless voice, data and video communication. Revenues have increased 53% and 46% during the last two quarters. earnings increased 43% and 58% during the same time frame and are expected to grow 26% this year and another 16% in 2009 to $1.75 a share. We will establish half a position here and enter the remaining half on a pull back to $31. Our stop loss will be set at $28.50.

Foreign Stocks

EZCH @ $16.92 (Lanoptics) is an Israeli developer of network processor chips for high-speed networking switches and routers. Revenues have increased 172%, 192%, 153% and 70% during the last four quarters. They announced their first profit in their history last year and should grow earnings at least 100% this year, although their are no analysts covering the stock. We will establish half a position here and add the remaining half on a pull back to $14.50. Our stop loss will be set at $13.75.

Issue: 4/25/2008

Dave Dispennette — Fri, 25 Apr 2008 03:54:00 GMT

Foreign Stocks

HMIN @ $21.99 (Home Inns & Hotels) operates 134 hotels with 16,162 rooms and 48 hotels under development covering 50 cities throughout China. Revenues have increased 71%, 75%, 74% and 96% during the last four quarters. earnings are expected to grow 269% this year and another 58% in 2009 to 0.93 cents a share. We originally recommended this stock on 10/29/06 at $25 and watched it double in a few months to $50. We are revisiting it here and will add to position on any weakness that brings us down to $19. We will set our stop loss at $17.75.

JRJC @ $18.45 (China Finance Online) is a Chinese provider of subscription-based online financial data of China's listed companies through www.chinafinanceonline.com. Revenues have increased 184%, 289%, 322% and 252% during the last four quarters. Earnings have accelerated 100%, 267%, 275% and 999% during the same time frame and are expected to grow 47% this year and another 78% in 2009 to $1.39 a share. We originally recommended this stock on 7/13/06 at $5.62 and watched it run as high as $47 in a little more than a year. Since then it has fallen as low as $10 and appears to be trying to recapture its 200 day moving average. We will establish half a position here and enter the remaining half on a pull back to $16 with a stop loss set at $15.

Shorts

IT looks like the rotation out of these Chemical and Fertilizer plays might finally be here. We are short POT and CF, but feel MOS and AGU have the same downside. If you took our advice two nights ago and shorted them, you should tighten up your stops now that they have all fallen $15 to $20.

Issue: 4/23/2008

Dave Dispennette — Wed, 23 Apr 2008 22:00:00 GMT

Foreign Stocks

SDA @ $21.56 (Sadia) is a Brazilian processor of frozen and refrigerated food products and poultry and pork products sold worldwide. Revenues have increased between 32% and 51% during the last four quarters. Earnings have increased 50%, 525%, 229% and 61% during the same time frame. We are adding SDA to OME and CQB in this group as it breaks out of a base. We are establishing a position here and will add to position on pull back to $18. Our stop loss will be set at $17.20.

JST @ $35.73 (Jinpan International) is a Chinese manufacturer of cast resin transformers used to convert high voltage electric transmissions to lower voltages. We originally bought this stock at $9.35 on 1/31/06 and are ready to revisit here at these levels. We will establish half a position here and will add the second half on a pull back to $30. Our stop loss will be set at $28.

ETF's

FXI @ $160.05 (Ishares Ftse/Xinhua China) is the ETF we play when we want some exposure to China. After being beaten down from $220 in October to a low of $120 in March, the FXI has reclaimed its 200 day moving average today with a better than 7% gain today. We are establishing half a position here and will add on a pull back to $150. Our stop loss will be set at $140 as we head into the summer Olympics. For the options players among us, we like the November $80 Calls (IKI KW) at $80.60 much better than the ETF.

Issue: 4/17/2008

Dave Dispennette — Fri, 18 Apr 2008 04:39:00 GMT

The Playbook 100

HIL @ $14.65 (Hill Intl.) provides construction consulting services for the building, transportation, power, industrial and technology industries. Revenues have increased between 38% and 76% during the last four quarters. Earnings are expected to grow 36% this year and another 20% in 2009 to 0.73 cents a share. We are establishing half a position here and will add the remaining half on a pull back to $13. Our stop loss will be set at $11.50.

Foreign Stocks

GFA @ $36.42 (Gafisa) is a Brazilian builder of residential homes, communities and commercial structures in 35 markets and 16 states in Brazil. Revenues have increased 79%, 127%, 124% and 88% during the last four quarters. Earnings are expected to grow 168% this year and another 52% in 2009 to $4.90 a share. We've been involved with this company for over a year and have made money a few times. We are re-establishing a position here with a stop at $33 and feel a move above $42 could see this stock at $50 in a hurry.

Issue: 4/7/2008

Dave Dispennette — Tue, 08 Apr 2008 02:09:00 GMT

Stocks Under $10

ICO @ $6.38 (I C G) is engaged in the production of metallurgical and steam coal in Maryland, Kentucky, West Virginia and Illinois. We are starting half a position here and will add the remaining half on a pull back to $5.50. Our stop will be set at $5.25.

Foreign Stocks

SUTR @ $6.28 (Sutor Technology) is a Chinese manufacturer of finished steel products for the construction, infrastructure and manufacturing industries. Revenues have increased 108%, 42%, 62% and 46% over the last four quarters. Earnings have increased 175%, 92%, 89% and 29% during the same time frame and are expected to grow 19% this year and another 14% in 2009. We are establishing half a position here and will add to position on a pull back to the 45.25 area. OUr stop loss will be set at $5.

Issue: 4/4/2008

Dave Dispennette — Fri, 04 Apr 2008 18:56:00 GMT

The Playbook 100

SUP @ $21.49 (Superior Industries) manufactures cast and forged aluminum wheels for U.S., European and Japanese automotive OEM's. Earnings are expected to increase 54% this year and another 45% in 2009. We are establishing half a position here and will enter the remaining half on a pull back to $19.75. Our stop loss will be set at $18.75.

Foreign Stocks

SDTH @ $8.70 (Shengdatech) is a Chinese manufacturer of coal-based chemicals and nano precipitated Calcium Carbonate primarily sold in North China. We originally recommended this stock on 11/18/07 at $7.18 and sold it for a profit between 57% and 100% within a couple of months. We are now ready to revisit it again at these levels. We feel the bottom is in, so we will establish a position here and set a close below $8 as our stop loss.

Issue: 3/31/2008

Dave Dispennette — Mon, 31 Mar 2008 19:44:00 GMT

The Playbook 100

SYNO @ $15.68 (Synovis Life Tech) develops implantable biomaterial products, surgical and micro-surgical tools and interventional devices. Revenues have increased between 29% and 39% during the last three quarters. Earnings are expected to grow 31% this year and another 38% in 2009 to 0.58 cents a share. Institutional sponsorship continues to pick up as the stock attempts to round out its low at the current level. We originally featured this company last March at $13.17 and are back to it for a second time after it has come down from it's high around $25. We will establish a position here and set our stop loss at $14.50.

Foreign Stocks

SID @ $35.99 (Companhia Siderurgic) is a Brazilian producer of galvanized, hot and cold rolled and tin mill steel products. Revenues have increased 34%, 74%, 34% and 40% over the last four quarters. Earnings have increased 100%, 167%, 150% and 640% during the same time frame and are expected to grow 20% this year and another 51% in 2009 to $3.47 a share. We are establishing a position here and will set our stop loss at $33.50.

Issue: 3/25/2008

Dave Dispennette — Tue, 25 Mar 2008 19:56:00 GMT

IPO's and New Issues

LL @ $10.98 (Lumber Liquidators) operates 111 stores in 42 states offering pre-finished and unfinished hardwood flooring. Revenues have increased between 20% and 24% during the last four quarters. Earnings have climbed 27% and 83% during the last two quarters and are expected to grow 70% this year and another 32% in 2009 to 0.96 cents a share. Lumber Liquidators came public in November at $11 and immediately traded lower, bottoming out around $6. Steady upside volume over the last two weeks has helped the stock hit a new high today. We are establishing half a position here and will enter the remaining half on a pull back to $9.50. Our stop loss will be set at $8.50. We feel this could be a great long term hold and will certainly add it to our Playbook 100 list.

Foreign Stocks

GNET @ $8.29 (Global Traffic Network) is an Australian broadcaster of customized traffic and news reports in Australia and Canada through 174 radio and 17 TV stations. Revenues have increased 68%, 73%, 80% and 60% over the last four quarters. They are expected to post their first profit in three years this year and grow another 150% in 2009. Volume has been heavy in this thinly traded stock over the last week. We originally featured this company on 4/24/07 at $7.07 and added to position on pull back to $6 and have held it ever since. Last year, four mutual funds were involved with this stock and today there are ten. We feel that makes this stock worth a shot for our more speculative accounts here or on a pull back to $7.50 with a stop set at $6.50 for now.

Issue: 3/17/2008

Dave Dispennette — Mon, 17 Mar 2008 20:06:00 GMT

Momentum Stocks

NUS @ $19.55 (Nu Skin Enterprise) is a network marketer of personal care products and nutritional supplements under the Nu Skin and Pharmanex brands. Earnings are expected to grow 38% this year and another 13% in 2009 to $1.36 a share. Institutional sponsorship has steadily increased over the last year and volume has steadily risen over the last month. The stock has closed higher during 15 of the last 18 days, as it's climbed from the $16 level. We will establish half a position here and enter the remaining half on a pull back to $17.50. Our stop loss will be set at $16.50.

IPO's and New Issues

V @ $37-$42 (Visa) which we discussed a couple of weeks ago is going to price their offering tomorrow and begin trading on Wednesday. If they price this offering in between $37 and $42 tomorrow, we will look to get involved with at least half a position on Wednesday at any price under $45 and will then re-evaluate after the initial euphoria subsides. Hopefully, anyone that has had the ability to get involved with the IPO has taken advantage of it.

Foreign Stocks

AUO @ $18.18 (A U Optronics) is a Taiwanese manufacturer of flat panel displays for desktop and notebook computers, LCD TV's and consumer electronics. For our more aggressive traders, we are establishing a position here and will set our stop loss at $17.50. Our investors could establish half a position here and enter the remaining half on a pull back to $16. Our stop loss will be set at a move below $15.20.

HSVLY @ $20.56 (Highveld Steel and Vanadium) is a South African manufacturer of Vanadium for the steel industry with interests in other metals. This stock is thinly traded and limit orders need to be used when purchasing. We will establish 1/4 of a position here and enter the second 1/4 at $19. The remaining half will be bought on our first pull back to its rising 50 day moving average and our stop will be 0.50 cents below that level, currently $16.