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Showing posts from September, 2010

ON Semiconductor -- on a roll as it breaks out

ON Semiconductor ($ONNN) popped up on a reversal alert screen on Tuesday evening. I only publish reversal alert lists on the weekends but now and then I do find some pretty interesting picks during the week. So let's start with the chart and we can take a look at the reversal in progress. There is a clear breakout that has taken place over the 50-DMA and the blue trend line. The stock is now right at a resistance level at $7.25. A move above that level would take it to the resistance level embodied by the 200-DMA. These two resistance levels will be a real test of how strong this breakout actually is. What also makes this stock interesting is the attractive valuation. Here are a few measures that make the point: The PE of 13 is modest (for a semiconductor company/growth stock) PEG is only 0.5 which is quite low Price to Sales is also modest at 1.48 Enterprise Multiple of 6.39 is definitely in the value stock range These numbers imply the stock is not over-priced. This n...

Value investing -- simple ratios still provide valuable insight

I wanted to alert readers to an excellent post at the Aleph Blog titled " Portfolio Rule Two ". Those of you who have looked at the Trade-Radar Stock Inspector software know that I have included an extensive collection of valuation measures on the Fundamental Analysis tab of the Dashboard ( see a screenshot ). You know that the software automatically evaluates each one and flashes a red, yellow or green light indicating how well each measure fits the valuation criteria built into the program. These indicators provide a quick estimation of whether a company is a value stock, is over-priced or is somewhere in between. David Merkel's post at the Aleph Blog touches on pretty much all of the valuation indicators in the Stock Inspector software and provides a deeper explanation of why some of them are more important for certain industries, which ones are least susceptible to "faking" and, most importantly, provides confirmation that these seemingly simple ratios d...

Faster, better, easier -- new Stock Inspector software release is best yet

I'm excited to announce that a new release of the Trade-Radar Stock Inspector software is available. Version 6.0 can be downloaded today at Trade-Radar.com . Anyone who has already purchased an earlier version or downloaded an evaluation copy of an earlier version is free to grab the new one. Why am I excited? A major focus in this release is usability. Where the previous version did a lot of computations under the hood to make it easy to analyze stocks, there was still a lot of clicking of buttons required and windows popping up and things like that. This new version now integrates the chart screen into the main screen. That means that the program's menu system and toolbar are accessible at all times. You can switch stocks and view new charts quickly and easily without ever leaving the main screen. Here is a screen shot: (Click to view larger image) Please note the two drop-downs at the bottom of the chart screen. With one of the drop-downs, you can turn on and off ...

A Divergence in Tech - why it's important

What is going on in tech these days and why is it important? If you read the post " Chart of the Day: Looking for Sector Leadership " at the Vix and More blog, you can see from the chart that tech is not the leading sector in the current rally (there are several sectors doing better) but but it has been performing decently. To see the rally continue, however, investors would like to see tech step up and assume more of a leadership role as it usually does when stocks break out to new highs. Something is holding tech back. Let’s look at three tech-focused ETFs and see graphically what is happening. The first is the iShares Dow Jones Technology Index ETF ($IYW). You can see a beautiful breakout above the 200-DMA and the 50-DMA. Indeed, the 50-DMA is now trending upward. The next one is the iShares S&P North American Tech-Software ($IGV). This ETF is in a full-fledged, all-out bullish trend. Finally we have the iShares S&P/GSTI Semiconductor ETF ($IGW). This E...

Offering a big dividend and threatening to break out -- BT Group bears watching

Here's a stock I found on the weekend's screen for Total Return Ratio (you can get a free preview of this and other screens that will soon be available at Alert HQ premium ). The company is BT Group (BT). BT is a UK-based provider of communications solutions and services operating in more than 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale. The perhaps more well-known entity British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. In addition to more mundane telecom activities like phone service, the company is als...

4 reasons Intel deserves another look

Intel's stock price has been circling the toilet lately but I'm not so sure the company deserves the scorn of investors. In actuality, the outlook is not nearly so dismal. First, let's start by looking back a couple of months. At that time Intel announced blow-out earnings and margins at the high end of their historical range. The stock popped briefly and then began a steady decline. Here is the chart: The nail in the coffin was when Intel announced that they were reducing their guidance for the third quarter of 2010. The stock dropped like a rock and took much of the semiconductor sector down with it. Why should Intel merit your attention? Here are four reasons: Intel has turned into a value stock. Looking at some of the classic valuation measures for Intel you would never suspect the company is a tech industry growth stock. For example, the PE is less than 11 which is very close to the 5-year low for the company, PEG is only 0.76, Enterprise Value/EBITDA is a mere...

8 value stocks with increasing dividends

There have been a plethora of posts about dividend stocks lately. Quite a few have pointed out that many stocks that offer dividends now yield more than Treasuries or corporate bonds. Others tout the advantage of dividends being able to add to total return in a choppy, range-bound market. For a good round up of the latest articles on this topic, you can visit the Investing Ideas page at Seeking Alpha and check out the section on dividends. One of the planned features of the upcoming Alert HQ Premium site will be a couple of stock screens that focus on dividends. In particular, I will be identifying those stocks that just raised their dividend during the previous week and yet are still more or less in the value stock category. The following list is from this weekend's screen. Symbol Name New Dividend Yield New Annual Dividend Old Annual Dividend ACGY Acergy S.A. 1.24% 0.21 N/A BOBE Bob Evans Farms, Inc. 2.91% 0.80 0.72 ...

Stocks surge to resistance -- real momentum or just another head fake?

It's been over a month since the last time I wrote a post like this so I'm taking the opportunity today to provide an overview of this weekend's stock market BUY and SELL signals available at Alert HQ and to take a look at what our indicators are saying. This weekend we had the following stock picks and signals: Reversal Alerts based on daily data, we have 98 Alert HQ BUY signals and 1 SELL signal Reversal Alerts based on weekly data, we have 7 Alert HQ BUY signal and 3 SELL signals We have 72 Bollinger Band Breakouts based on daily data and 59 are bullish. We also have 101 Breakouts based on weekly data of which 86 of them are bullish. We have 578 Cash Flow Kings 31 Swing Signals --  every single one is a  BUY signal 112 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. We have 41 stocks that are new additions to the list and 14 that fell off the previous list from Thursday. 81 Tr...