The Stock Playbook : Momentum Stocks

Issue: 6/17/2008 Part 2

Dave Dispennette — Wed, 18 Jun 2008 14:19:00 GMT

Momentum Stocks

CYBX @ $22.37 (Cyberonics) develops an implantable device to treat epilepsy, depression and other debilitating neurological and psychiatric diseases. Heavy upside volume has made its way into this stock over the last few days, as the company closes in on announcing their first profit in a few years. They are expected to increase earnings 208% next year. We are establishing a quarter position here and will enter the second quarter on a pull back to the $20 level. The remaining half will be bought on any weakness that allows us to get in around $18.50 to $19. Our stop loss will be set at its rising 50 day moving average, currently $16.75.

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: 5/20/2008

Dave Dispennette — Wed, 21 May 2008 01:53:00 GMT

Growth Stocks

CYBS @ $18.41 (Cybersource) provides risk management and electronic payment solutions for businesses that process sales transactions online. Revenues have accelerated 40%, 53%, 117% and 141% during the last four quarters. Earnings have also accelerated, climbing 50%, 67% and 100% over the last three quarters. CYBS has been a favorite of ours for some time now, originally featured on 1/31/06 at $8.89 and most recently on 12/17/07 at $15.80. We are buying more after today's pull back at these levels and will add to position on any further weakness that brings the stock down to the $16 level. Our stop loss will be set at $15.50.

Momentum Stocks

MXC climbs another $14.63 or 52% today, in a weak market. This stock has gone parabolic, climbing almost 1,000% in a month. We would be interested in shorting this stocks at these levels, but couldn't find any to borrow. Needless to say, if you bought this on breakout or today, you are crazy if you don't book profits.

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: 4/30/2008

Dave Dispennette — Thu, 01 May 2008 03:07:00 GMT

Growth Stocks

RBA @ $24.95 (Ritchie Brothers Auctioneers) conducts auctions of trucks and equipment via 110 locations, including 33 auction sites in 25 countries around the world. Revenues have increased between 18% and 22% during the last four quarters. Earnings are expected to grow 18% each of the next two years to $1 a share. They just completed a 3 for 1 split and sold off. It appears they found support at their rising 200 day moving average. We will establish a position here with a tight stop set at $24, so you have 0.95 cents downside, compared to $5 to $10 up.

Momentum Stocks

Don't look now, but the hospitals group is heating up and making its way higher for the first time in a couple of years. This doesn't make sense to us during an election year, but we can't fight the tape. Our favorite is:

CYH @ $37.53 (Community Health System) which operates 115 non-urban acute care hospitals geographically diversified across 27 states. Revenues have accelerated 110%, 129% and 136% during the last three quarters. earnings are expected to grow 268% this year and another 26% in 2009 to $2.92 a share. We are establishing a position here and will set our stop loss at $33.50. We also like UHS @ $62.64 (Universal Health), DYII @ $6.01 (Dynacq Healthcare), LPNT @ $30.12 (Lifepoint Hospitals) and THC @ $6.40 (Tenet Healthcare) at these levels.

Issue: 4/15/2008

Dave Dispennette — Wed, 16 Apr 2008 02:08:00 GMT

The Playbook 100

QMAR @ $24.29 (Quintana Maritime) provides international marine transportation services for coal, iron ore and grain with a fleet of 29 drybulk carriers. Revenues have increased between 75%, and 203% during the last four quarters. Earnings are expected to increase 80% this year to $2.39 a share. We feel the drybulk shippers are ready to start their trek higher. We also like DRYS, TBSI and EGLE but have chosen QMAR as our drybulk shipper play. We are establishing a position here and will add to position on any weakness around $22 with a tight stop loss set at $21.50.

Momentum Stocks

BJS @ $30.50 (B J Services) provides pressure pumping and oilfield services to the petroleum industry. The stock has broken above a downward sloping trendline last month and today broke out of a base that dates back to last year at this time. We picked up some of this today around $30 and feel a position established here with a stop loss set around $26 will allow us to make at least a 25% return over the next few months. We will add to position if we see weakness that pulls the stock back to the $27.50 area.

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: 3/2/2008

Dave Dispennette — Sun, 02 Mar 2008 21:34:00 GMT

Momentum Stocks

The oil and gas exploration sector has had many stocks climb to new highs recently and we feel this may be one of the sectors that shows leadership once we emerge from the recent market doldrums. We wouldn't buy all of these stocks but would choose one or two of the following if you didn't invest in BZP @ $13.85 a few weeks ago when we recommended it.

PQ @ $15.76 (Petroquest Energy) is engaged in the exploration and production of oil and natural gas in Oklahoma, Texas and the Gulf Coast basin. We would establish half a position here and enter the remaining half on a pull back to $14. Our stop loss will be set at $13.

CLR @ $28.08 (Continental Resources) is engaged in the exploration and production of oil and natural gas in the Rocky Mountain, Mid-Continent and Gulf Coast regions. We would establish half a position here and buy the remaining half on a pull back to $25.50. Our stop loss will be set at $24.50.

MMR @ $16.80 (Mcmoran Exploration), SGY @ $50.76 (Stone Energy), and SD @ $37.64 (Sandridge Energy) are also attractive and could be played on any weakness.

Watch List

Here is a look at some of the stocks we plan on buying if this weakness brings us to our next entry levels. GS @ $160, AAPL @ $118, CMED@ $40, NYX @ $62 and believe it or not, while we still don't like many financial's beyond Goldman Sachs, we are ready to dip our foot in on Citigroup (C) @ $22. We also like the Citigroup 2010 $10 Calls at $14.35.

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.

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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!®