The Stock Playbook : IPO's

Issue: 6/17/2008

Dave Dispennette — Tue, 17 Jun 2008 14:28:00 GMT

IPO's and New Issues

TGH @ $19.84 (Textainer Group) provides worldwide inter modal container leasing with over 1.3 million containers and more than 130 locations. Revenues have accelerated 10%, 13%, 22% and 22% over the last four quarters. TGH came public in October at $17 and has pulled back to its rising 50 day moving average for the first time since we first recommended it on 4/28/08 at $16.84. We feel this is a great level to add or establish a new position in this company with a stop loss set at $18.50.

This newsletter has been sent to you for informative purposes only and in no event should be construed as a representation by The Stock Playbook or its employees as an offer to sell or solicitation of an offer to buy any securities. The factual information given is taken from sources we believe to be reliable, but is not guaranteed as to its accuracy or completeness. The opinions expressed should be given only such weight as opinions warrant. employees and/or family members may have a position in the securities mentioned and may make purchase and/or sales of such securities from time to time in the open market or otherwise Recipients of The Stock Playbook prohibited from, directly or indirectly, distributing, forwarding , plagiarizing or copying any part of this message without expressed written consent from The Stock Playbook. Some content may have been based, at least in part, on material gathered from Investor's Business Daily ® and/or YAHOO!®

Issue: 6/1/2008

Dave Dispennette — Mon, 02 Jun 2008 02:20:00 GMT

IPO's and New Issues

ES @ $25.40 (Energysolutions) provides specialized, technology-based nuclear services to government and commercial customers. Revenues have accelerated 88%, 219%, 222% and 340% during the last four quarters. Earnings are expected to rise 42% next year to $1.04 a share. ES came public in November at $23 and appears ready to emerge from its first trading pattern as upside volume steadily increases. We are establishing half a position here and will enter the remaining half on a pull back to $23.50. Our stop loss will be set at $20.50.

Issue: 5/8/2008

Dave Dispennette — Fri, 09 May 2008 01:52:00 GMT

Momentum Stocks

STEC @ $11.26 (S T E C Inc.) manufactures custom non-volatile and DRAM drives and memory cards for defense, aerospace, computer and networking markets. Earnings are expected to grow 85% this year and another 81% in 2009 to 0.67 cents a share. We originally recommended this stock on 8/3/06 at $5.95 and sold it for a 113% profit a few months later. We are revisiting the stock here by establishing half a position here and will enter the remaining half on a pull back to $9. Our stop loss will be set at $8, so adjust the size of your trade.

IPO's and New Issues

VIT @ $10.84 (Vance info Tech) is a Chinese provider of outsourced software research and development, maintenance, testing and IT services. Revenues have increased between 96% and 153% during the last four quarters. Earnings have accelerated 50%, 100%, 100% and 167% during the same time frame and are expected to grow 48% this year and another 41% in 2009. They came public in December at $9 and appear to be ready to work there way out of their first base. They are expected to report earnings before the open and we will establish a position at any level below $10. Otherwise, we will establish half a position at these levels and add on a pull back to $9.50. Our stop loss will be set at $8.

Issue: 4/27/2008

Dave Dispennette — Mon, 28 Apr 2008 04:47:00 GMT

IPO's and New Issues

HCCI @ $18.45 (Heritage-crystal Clean) provides parts cleaning and containerized waste services via 54 branches in 38 states to small and mid-sized customers. Revenues have increased between 20% and 24% during the last four quarters. HCCI came public in March at $12 and recently emerged above its trading pattern at $16. We will establish half a position here and add the second half on a pull back to the $16 level. We will set our stop loss at $15.

Stocks Under $10

ARTG @ $3.92 (Art Technology) develops web-based commerce, customer service and marketing software applications and related services. Revenues have increased between 22% and 64% during the last four quarters. Earnings are expected to grow 50% this year and another 89% in 2009. We originally recommended this stock in December at $4.60, but were stopped out for a small loss and are re-establishing a position here with a stop loss at $3.60.

Issue: 4/21/2008

Dave Dispennette — Tue, 22 Apr 2008 12:56:00 GMT

Growth Stocks

ARD @ $46.87 (Arena Resources) is engaged in the exploration and production of oil and natural gas properties in Oklahoma, Texas, Kansas and New Mexico. Revenues have increased between 47% and 113% during the last four quarters. Earnings are expected to grow 56% this year and another 41% in 2009 to $2.42 a share. A breakout above a triple top has us establishing half a position here and buy the remaining half on a pull back to $42. Our stop loss will be set at $39.75.

IPO's and New Issues

HOO @ $14.30 (Cascal) is a Dutch provider of water and wastewater services to homes and businesses in eight countries. Earnings are expected to grow 63% this year and another 55% in 2009. They came public in January at $12 and recently emerged from its first tradable base with a move above $12.50. We are establishing half a position here and will enter the remaining half on a pull back to $13. Our stop loss will be set at the IPO price of $12.

Issue: 4/13/2008

Dave Dispennette — Mon, 14 Apr 2008 04:46:00 GMT

IPO's and New Issues

SOL @ $12.69 (Renesola) is a Chinese manufacturer of solar wafers for the production of solar cells and modules. Revenues have increased 334%, 182%, 159% and 198% during the last four quarters. Earnings are expected to grow 46% this year and another 67% in 2009 to $1.75 a share. They came public in January at $13 and appear close to completing their first base. With solar stocks heating up again, we will establish a position here and set our stop loss at $11.

Options

CCJ IE @ $12.70 (Cameco September $25 Calls) are currently in the money by $11.76, with CCJ closing at $36.76 on Friday and charging less than a $1 in time value. There has been huge call buying in the April and May $40 an d$45 Calls and with consolidation running rampant in this sector, we felt we'd add these option s to our portfolio. We've been fans of Cameco's stock since last year and like the risk to reward ratio with these options. We will add to position on pull back in Cameco to $33 and close position on move below $31. A move to $50 in CCJ will net us better than a 100% return.

Issue: 4/1/2008

Dave Dispennette — Tue, 01 Apr 2008 19:47:00 GMT

IPO's and New Issues

DMAN @ $10.53 (Demandtec) provides consumer demand management software for retailers and consumer product companies. Revenues have accelerated 25%, 32%, 40% and 49% during the last four quarters. They are expected to announce their first profit this year and then grow earnings 238% next year. We've made money on this stock in the past and are re-establishing a position by buying half here and we will add the remaining half on a pull back to $9. Our stop loss will be set at $8.50.

ETF's

PBW @ $20.15 (Powershares Clean Energy) is an ETF seeking performance corresponding to the Wilderhill Clean Energy index. We've made money in this ETF before and are re-visiting it here. We will establish half a position here and enter the remaining half on a pull back to $18.50. Our stop loss will be set at $18.

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: 3/24/2008

Dave Dispennette — Mon, 24 Mar 2008 19:58:00 GMT

IPO's and New Issues

MDAS @ $15.95 (MedAssets) provides revenue cycle and spend management software for hospitals and other healthcare providers. Revenues have increased between 23% and 46% during the last four quarters. Earnings are expected to grow 307% this year and another 25% in 2009. They came public in December at $16 and staged a dramatic reversal off a new low last week. We will establish half a position here and enter the remaining half on a pull back to $14. Our stop loss will be set at a violation of the recent low of $11.80 set last Thursday, so adjust the size of your trade to accommodate for the amount of potential downside, although we don't think this stock will see $12 again.

Stocks Under $10

SMCI @ $8.80 (Super Micro Computer) manufactures application optimized server systems, server boards, chassis and power supplies to distributors and OEM's. Revenues have increased between 21% and 39% during each of the last four quarters. Earnings are expected to grow 46% this year to 0.76 cents a share. We've been involved with this stock since they came public last April at $8 a share. For the investors among us, we feel this is a great entry level and would set our stop loss at $8. The more aggressive traders could establish a position here with a stop at $8.35, just below last weeks low.

Issue: 3/19/2008

Dave Dispennette — Wed, 19 Mar 2008 20:01:00 GMT

The Playbook 100

CELG @ $57.68 (Celgene) develops therapies to treat cancer and immune-inflammatory related diseases. Revenues have increased between 43% and 76% during each of the last four quarters. Earnings have increased between 72% and 136% during the same time frame and are expected to grow 43% this year and another 50% in 2009 to $2.28 a share. We've made money a few times in this company over the last few years and feel a good risk to reward is being offered by establishing a position here with a tight stop at $53. Our option players have a nice option listed below.

IPO's and New Issues

V @ $56.50 (Visa) gapped higher, so we didn't chase it. We will wait for a pull back toward the $45 level for now and until then, feel Mastercard (MA) offers us a better value.

ETF's

FXI @ $123.69 (Ishares Xinhua China) is an exchange traded fund seeking performance corresponding to the FTSE/Xinhua China 25 Index. We will establish a position on continued weakness that allows us an entry at $115 and will place a tight stop at $110.

Options

VCS AF @ $29.90 (Celgene January 2009 $30 Calls) are only costing us $2.22 in time value and could be a huge winner on a Celgene breakout above $60. Otherwise, we risk $4 to the downside for potentially $20 plus to the upside.

Issue: 3/18/2008

Dave Dispennette — Tue, 18 Mar 2008 20:03:00 GMT

The Playbook 100

BRKR @ $15.42 (Bruker Corp) develops life science tools based on mass Spectrometry and materials research tools based on X-Ray technology. Revenues have accelerated 16%, 21%, 26% and 35% over the last four quarters. Earnings are expected to grow 74% this year and another 31% in 2009. We are establishing half a position here and will add the remaining half on a pull back to $13.50. Our stop loss will be set at $12.

IPO's and New Issues

V @ $44 (Visa) priced above its range of $37-$42 tonight and will raise $17.9 billion, easily eclipsing the previous U.S. record IPO of $10.6 billion set by AT&T Wireless eight years ago. We were a little surprised by the pricing in this market. Many people feel this will be the next Mastercard (MA) but it won't, and I'll tell you why. After the offering, Visa will have a market value of $36 billion, or $8 billion more than Mastercard's current $28 billion value. When Mastercard came out, they priced their deal and only had less than a $6 billion market cap. In other words, Visa is being priced off of Mastercard's current value. Unlike Mastercard, you will not see Visa climb 500% over the next two years. However, we feel you could see a 100% increase over the next two years. We are going to establish half a position under $45. Otherwise, we will exercise patience and wait for it to come in for us. The remaining half will be added on any weakness that brings the stock toward the $40 level, which could easily happen in the current environment. This stock will be added to the Playbook 100.

Shorts

SLB @ $84.37 (Schlumberger) provides technology services, project management and information solutions to the international oil and gas industry. We are bullish on this stock long term but feel a short here with a tight stop at $90 could be rewarded nicely if oil pulls back to $100 a barrel. For the options players, we would play the April $95 Puts (SLB PS) at $11.60 with a stop set at $8. A move to $72 on the downside could net us in excess of 100% return and that is a good risk to reward ratio.

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.

Issue: 3/13/2008

Dave Dispennette — Thu, 13 Mar 2008 20:10:00 GMT

Growth Stocks

EAC @ $39.46 (Encore Acquisition) is engaged in the exploration and production of crude oil and natural gas from onshore fields in the United States. Earnings are expected to increase 93% this year to $3.28 a share. Volume has steadily increased as the stock emerges from its recent consolidation. We are establishing half a position here and enter the remaining half on a pull back to $35. Our stop loss will be set at $34.

Momentum Stocks

COIN @ $11.22 (Converted Organics) is a development stage company seeking to manufacture fertilizers from organic food waste for the agribusiness market. We originally featured this stock on 1/3/08 at $5.74 and have been in and out a couple times over the last couple of months. We are establishing half a position here and will enter the remaining half around $9.75. We will set our stop loss at a close below $9.

IPO's and New Issues

RMG @ $17.01 (Riskmetrics Group) provides risk management and corporate governance products and services to institutional investors and corporations. We originally recommended this stock two weeks ago at $21.98, but were stopped out for a .50 cent loss. RMG came public in January at $18 and is now trading below its IPO price after gapping 33% higher on its first day of trading. We like this stock long term and will start to accumulate a small position here. We don't want to fight the recent selling, so establish just 25% of your position here. We will add another 25% on a move back above $18 or continued weakness that allows us to get in at $15.

Issue: 3/3/2008

Dave Dispennette — Mon, 03 Mar 2008 15:37:00 GMT

The Playbook 100

ACI @ $52.11 (Arch Coal) is engaged in the mining, processing and marketing of coal with low Sulfur content in the Eastern and Western U.S. Earnings are expected to grow 97% this year and another 41% in 2009 to $3.36 a share. We are establishing half a position here and will add the remaining half on a pull back to the $47 level. Our stop loss will be set at $45. We like the LEAP listed below, for those that like to invest in options instead.

IPO's and New Issues

ATAI @ $10.36 (ATA Inc.) is a Chinese provider of test-based educational programs, computer-based testing services and test preparation software. They came public last month at $10 and we feel establishing half a position here, with the remaining half purchased on a pull back to $9 with give us a great opportunity to make money going forward. We will set our stop loss at $8.50.

Options

OSE AF @ $24.10 (Arch Coal January 2009 $30 Call) is in the money by $22.11 and charging less than $2 in time value for the next ten months. We are buying these instead of the stock due to the compelling risk to reward ratio and will entertain writing calls against our position once Arch breaks out to new highs above $55. Once the stock gets to the $60 level, we will write the near term $65 or $70 Calls to increase our return.

Issue: 1/04/2008

Dave Dispennette — Fri, 04 Jan 2008 15:24:00 GMT

Market Summary:

The market closed narrowly mixed today as investors traded cautiously ahead of the Labor Department's Friday reading on December employment. Inflation jitters remained high as oil prices set a new trading record above $100. The Dow rose 12.76, or 0.10 percent, to 13,056.72. The S&P 500 was unchanged at 1,447.17, and the Nasdaq slipped 6.95, or 0.27 percent, to 2,602.68.

Momentum Stocks:

IDRA @ $13.29 (Idera Pharmaceuticals) develops DNA and RNA-based therapeutics for the treatment of cancer, asthma, allergies, HIV and other infectious diseases. Revenues have accelerated 186%, 215% and 246% during the last three quarters, yet they are still a few years away from turning a profit. However, heavy upside volume has landed this company on our radar for the last few months, almost daily. Therefore, we will establish half a position here and enter the remaining half on a pull back to $11. Our stop loss will be set at $10.25.

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IPO's and New Issues:

KGS @ $25.75 (Quicksilver Gas Service) is engaged in the gathering and processing of natural gas from the Barnett Shale located at Fort Worth basin in Texas. Revenues have increased between 107%and 222% during the last four quarters. Earnings are expected to grow 190% this year and another 341% in 2008 to $1.28 a share. KGS came public in August at $21 and appears ready to emerge from its first trading pattern. We are establishing half a position here and will enter the remaining half on a pull back to $24. Our stop loss will be set at $22.50.

(INSERT CHART HERE)

Stocks Under $10:

COIN @ $5.74 (Converted Organics) is a development stage company seeking to manufacture fertilizers from organic food waste for the agribusiness market. This tiny $24 million company has seen volume explode over the last few days as it rose from $4 to almost $7. This is not for the faint of heart and we won't touch it unless we get a pull back to $4.75, where we will establish half a position. The remaining half will be bought at $4 and we will have a tight stop set at $3.75.

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DISCLAIMER:

This newsletter/blog is for informative purposes only and in no event should be construed as a representation by InvestorsInsight Publishing, The Stock Playbook or its employees as an offer to sell or solicitation of an offer to buy any securities. The factual information given is taken from sources we believe to be reliable, but is not guaranteed as to its accuracy or completeness. The opinions expressed should be given only such weight as opinions warrant. Employees and/or family members may have a position in the securities mentioned and may make purchase and/or sales of such securities from time to time in the open market or otherwise Recipients of The Stock Playbook prohibited from, directly or indirectly, distributing, forwarding , plagiarizing or copying any part of this message without expressed written consent from The Stock Playbook. Some content may have been based, at least in part, on material gathered from Investor's Business Daily ® and/or YAHOO!®