The Stock Playbook : Stocks Under $10

Issue: 7/7/2008

Dave Dispennette — Tue, 08 Jul 2008 02:00:00 GMT

Stocks Under $10

NR @ $6.95 (Newpark Resources) provides fluid management, environmental and oilfield services to the oil and gas exploration and production industry. Earnings are expected to grow 31% this year and another 29% in 2009. We are establishing a position here and will set our stop loss at $5.75, so adjust the size of your trade.

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: 6/4/2008

Dave Dispennette — Thu, 05 Jun 2008 01:49:00 GMT

Stocks Under $10

HIMX @ $6.14 (Himax Technologies) is a Taiwanese designer of display drivers for large-sized thin film transistor LCD panel displays. Revenues have increased between 21% and 37% during the last four quarters. The stock has come under heavy accumulation over the last month as it clears its $5.85 buy point. We are establishing half a position here and will add the remaining half on a pull back to $5.25. Our stop loss will be set at $4.50.

Issue: 5/13/2008

Dave Dispennette — Wed, 14 May 2008 02:02:00 GMT

Market Summary

The market turned in a mixed performance today after a fresh report on retail sales and a new oil price record told investors the same old story: The economy is hurting and costs are rising, but things could be worse. The Dow fell 44.13, or 0.34 percent, to 12,832.18. The S&P 500 fell 0.54, or 0.04 percent, to 1,403.04, and the Nasdaq rose 6.63, or 0.27 percent, to 2,495.12.

Stocks Under $10

KAZ @ $7 (B M B Munai) is engaged in the exploration and production of oil and gas in the Caspian Sea region of the Republic of Kazakhstan. Revenues have increased between 217% and 662% during each of the last four quarters. earnings are expected to increase over 1,000% this year to $1.12 a share. Volume has exploded to the upside over the last week. We are establishing half a position here and will enter the remaining half on a pull back to $6.25. Our stop loss will be set at $5.50.

Issue: 5/11/2008

Dave Dispennette — Mon, 12 May 2008 03:05:00 GMT

The Playbook 100

AMAT @ $19.29 (Applied Materials) manufactures deposition, inspection, etching and cleaning equipment used in the fabrication of IC's and flat panel displays. However, it is their recent foray into the solar industry that has us intrigued. We are establishing a position here and will set our stop loss at $18.25.

Stocks Under $10

WATG @ $8.79 (Wonder Auto Technology) is a Chinese manufacturer of electrical components for the automotive industry. Revenues have increased between 25% and 55% during the last four quarters. Earnings increased between 33% and 55% during the same time frame and are expected to grow 30% this year and another 27% in 2009 to 0.99 cents a share. We've made money in this name in the past and are ready to revisit it here with a stop loss at $7.50. We'll add to position on any weakness that allows us to invest 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: 4/20/2008

Dave Dispennette — Sun, 20 Apr 2008 15:18:00 GMT

The Playbook 100

EGLE @ $28.44 (Eagle Bulk Shipping) provides international tanker transportation charter services for dry bulk goods through a fleet of 18 vessels. We mentioned it last week at $26.39 when we featured QMAR, which closed its deal of being acquired by Excel Maritime Carriers (EXM) the next day, so never traded. Those who bought DRYS, TBSI or EGLE that day are up anywhere from 10 to 30% in a week. We still like EGLE here for anyone who still isn't involved and would establish a position here with a stop loss at $25.50. We also would add to position on any weakness to $26.

Stocks Under $10

DGLY @ $9 (Digital Ally) produces video surveillance products for law enforcement, homeland security and commercial security applications .Revenues have increased between 254% and 999% during the last four quarters. Earnings have accelerated, rising 113%, 138%, 150% and 700% during the same time frame. Volume has been heavy on the buy side for the last two weeks. We will establish a quarter position here and add second quarter on a pull back to $8. The final half will be bought if we see $7.50. Our stop loss will be set at $7.

Issue: 4/14/2008

Dave Dispennette — Tue, 15 Apr 2008 03:52:00 GMT

Stocks Under $10

CLS @ $6.89 (Celestica) is a contract manufacturer of printed circuit assemblies for the communications, computing and consumer markets. Earnings are expected to grow 96% this year and another 26% in 2009. We are establishing half a position here and will add the remaining half on a pull back to $6.50. Our stop loss will be set at $6.

Issue: 4/10/2008

Dave Dispennette — Fri, 11 Apr 2008 01:03:00 GMT

Stocks Under $10

UFPT @ $9.50 (U F P Tech) manufactures engineered component products using laminating and fabricating technologies for industrial and consumer markets. Earnings are expected to grow 25% this year to 0.89 cents a share. Volume has steadily increased in this stock over the last couple of weeks. We will establish half a position here and enter the remaining half on a pull back to $8. Our stop loss will be set at $7, so adjust the size of your trade accordingly.

QSC @ $4.66 (Questcor Pharmaceutical) develops prescription drugs for the treatment of diseases and disorders of the central nervous system. Revenues have accelerated 24%, 266% and 697% during the last three quarters and earnings also grew by triple digits during the same time frame. Institutional sponsorship has increased from 4 to 10 mutual funds owning the stock over the last year. We are establishing a position here and will set our stop loss at a move below recent low's of $3.65. We would prefer to own this closer to the $4 level. If you'd like, you could establish half a position here and enter the remaining half on a pull back to $4, but it may never come. We feel this stock could double over the next year, if not sooner.

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: 4/2/2008

Dave Dispennette — Thu, 03 Apr 2008 14:37:00 GMT

Growth Stocks

LMNX @ $20.80 (Luminex) develops biological testing systems to perform genetic analysis for the development and identification of new drugs and genes. Revenues have increased 28%, 32%, 55% and 51% over the last four quarters. The stock recently cleared the $18 resistance level and volume has steadily increased over the last couple of months. We are establishing a 1/4 position here and will enter the second 1/4 at $19. The remaining half will be bought around $18 or a test of its rising 50 day moving average. Our stop loss will be set at the 200 day moving average.

Stocks Under $10

AEHR @ $8.65 (Aehr Test Systems) manufactures wafer test and burn-in systems used to analyze memory and logic IC's for the semiconductor industry. Revenues have increased 18%, 7%, 55% and 90% over the last four quarters. Earnings have grown 86%, 33%, 90% and 400% over the same time frame and are expected to increase 116% this year and another 44% in 2009 to $1.18 a share. This stock is cheap and not followed by anyone on Wall Street. We are establishing half a position here and will enter the remaining half on a pull back to $7.50. We feel this is at least a $20 stock in a year or two and are treating it accordingly by adding it to the Stock Playbook 100. Just an FYI, we didn't list a stop loss level because we plan to accumulate more if we see the $6 level. Every once in awhile, we break our own rules and fall in love with a stock, which you should never do. We won't consider bailing on this stock until we see a move below $5.25 and we'll re-evaluate there depending on volume.

Options

For the options traders, we feel SLB and MOS are both ready to roll over and have a defined downside.

We like the SDB PT (Schlumberger April $100 Put) with a stop set on a move above $93 by SLB.

We also bought the MTJ PE (Mosaic April $125 Put) with a stop set on a move above $110 by MOS.

Issue: 3/30/2008

Dave Dispennette — Sun, 30 Mar 2008 19:49:00 GMT

The Playbook 100

SFLY @ $15.32 (Shutterfly) provides an online marketplace to share, print and preserve personal and professional digital photos via Shutterfly.com. Revenues have increased between 49% and 58% during each of the last four quarters. Earnings are expected to grow 16% this year and another 39% in 2009 to 0.68 cents a share. We originally invested in this stock on 10/2/06 at $15.55 and again on 5/9/07 at $18.60. We sold it most recently on 11/7/07 at $30 for a 61% profit after it fell from a high of $37. Volume has been very light as the stock consolidates down here at its recent lows. Institutional sponsorship has increased from 26 to 68 mutual funds owning the stock over the last year. We are re-establishing a position in SFLY here and will use their annual low of $14.61 as our gauge for setting our stop loss at $14.50. This offers us a downside of 0.82 cents compared to a potential double on the upside with patience.

Stocks Under $10

RMTR @ $4.12 (Ramtron) is a leading developer and supplier of nonvolatile ferroelectric random access memory (F-RAM) and integrated semiconductor products, announced that it will exhibit at this year's Embedded Systems Conference. At the show, Ramtron will demonstrate the semiconductor industry's first Event Data Recorder (EDR) with embedded nonvolatile F-RAM memory -- an integrated event monitoring solution that stores state changes in 24KB of F-RAM and alerts the system to those changes. We've been involved with this company a few times over the years and have made money each time. We already own this company at $3.25 but feel the current level offers a great entry point. Aggressive traders can set a stop at either $3.90 or a move below its 200 day moving average, currently around $3.65. Investors could establish half a position here and enter the remaining half on a pull back to $3.50 over the next month with a stop set at $2.70.

Issue: 3/26/2008

Dave Dispennette — Wed, 26 Mar 2008 19:54:00 GMT

Growth Stocks

MFLX @ $18.88 (Multi Fineline Electronix) manufactures flexible printed circuits and component assemblies used in mobil phones, bar code scanners and PDA's. Revenues have increased 51% and 49% during the last two quarters. Earnings are expected to grow 361% this year to $1.43 a share. We are establishing half a position here and will enter the remaining half on a pull back to $17. Our stop loss will be set at $16.

Stocks Under $10

IG @ $2.01 (I G I) develops cosmetic, skin care and consumer products utilizing its Lipid Vesicle Encapsulation technology. This stock is thinly traded and limit orders need to be used. For those more inclined to take on risk, we would establish half a position on a pull back to $1.90 and enter the remaining half at $1.70. Our stop loss will be set at $1.60.

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: 3/6/2008

Dave Dispennette — Thu, 06 Mar 2008 21:22:00 GMT

The Playbook 100

VCLK @ $17.51 (Valueclick) provides online advertising campaigns and programs to direct marketers, brand advertisers and advertising agencies. Revenues have increased 14% each of the last three quarters. Earnings are expected to grow 22% next year to 0.96 cents a share. We've made money in this stock a few times over the last couple of years and feel this is another great opportunity at these levels. We feel VCLK will probably be bought out by the end of the year, but if it doesn't, it still should see $25 a share. For the investor, we are establishing half a position here and entering the remaining half on a pull back to $15. Our stop loss will be set at $13, so adjust the size of your trade accordingly. The more aggressive traders can establish an entire position here with a tight stop set at $16.75.

Stocks Under $10

DYN @ $7.48 (Dynergy) provides electric energy, capacity and ancillary services to customers in the Midwest, New York, Texas and the Southeast. Revenues have increased between 106% and 118% during the last three quarters and earnings are expected to grow 140% this year and another 62% in 2009. We've made money a few times in this name as well and it could be added to the Playbook 100 also. We are establishing a position here and setting our stop loss at $7.

Watch List

CMED, GS, NYX and C have all hit our entry levels for establishing at least half a position. We expect to get our entry in Apple (AAPL) shortly. Also, to those who have written about Fannie Mae (FNM) over the last two days, the stock should have been stopped out. We realize we spoke favorably about the stock only a week ago, but we cannot stay invested in this falling knife. We took a shot and it didn't work out, move on because this stock could go much lower just as easily as it could bounce to $30 and we don't hold losers and hope for a rebound, we move on.

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.

(INSERT CHART HERE)

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.

(INSERT CHART HERE)

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!®