Gug's Hot Buys

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gugaplex

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I will start off this thread with one of my recent buys. The stock is National Dentex Corp (NADX). I bought a week ago at $18.80. The stock trades a mere 3,000 shares daily, so it is not a day-trading candidate. The fundamentals for the stock are strong (dental industry will benefit from Baby-Boomers), the valuations are LOW (trades at 1.3 x's Book Value and has a 0.96 PEG ratio), and the stock is extremely over-sold. I believe NADX is fairly valued in the mid $20's, and should reach this level within a year or less.

Please let me know what you think, and some of your "Hot Buys"....
 
Nudder "Hot Buy" for ya, buy BRCM on a dip. May trade down to $27 at worst, but has up-side potential to $40 within 6 months.

Good luck....
 
Hi gugaplex,

I trade exclusively U.S. Stocks so was quite interested when I saw your thread.

I'm afraid I would not personally touch a stock like NADX. With trading volume at just 3000 shares a day, I would question the general market interest in this stock and I would also be concerned about the wide bid-offer spread created by this thin volume. If I was wanting to go for a stock in this industry sector (ie - Medical Supplies), I would be going for sector leaders like CHDX or CPTS - both are leading this sector in terms of earnings and recent price performance.

As for BRCM - again, if I was going to invest in the Semiconductors sector, I would personally choose RFMD which in my opinion has stronger earnings and is currently in a nice price uptrend on the daily chart.

All of this is my opinion of course - please don't think I'm disagreeing for the sake of it!

After all, it's all those differing opinions that make a market in the first place!


Thanks


Damian
 
damianoakley said:
Hi gugaplex,

I trade exclusively U.S. Stocks so was quite interested when I saw your thread.

I'm afraid I would not personally touch a stock like NADX. With trading volume at just 3000 shares a day, I would question the general market interest in this stock and I would also be concerned about the wide bid-offer spread created by this thin volume. If I was wanting to go for a stock in this industry sector (ie - Medical Supplies), I would be going for sector leaders like CHDX or CPTS - both are leading this sector in terms of earnings and recent price performance.

As for BRCM - again, if I was going to invest in the Semiconductors sector, I would personally choose RFMD which in my opinion has stronger earnings and is currently in a nice price uptrend on the daily chart.

All of this is my opinion of course - please don't think I'm disagreeing for the sake of it!

After all, it's all those differing opinions that make a market in the first place!


Thanks


Damian
Click to expand...

Thanks for the input! As for CHDX, whew up over 300% in a year! Seems a little over-valued here. The chart shows a nice little bubble, and should correct soon (although, not immediately). The stock also has a price/book ratio of over 4, while NADX sports a modest price/book of 1.32. Also, the chart is deflated for NADX, giving more room for up-side.

I guess it depends on your style, if the trend is your friend, then CHDX is a good quick pick (but keep yer eye on it, the tide will change abruptly).

Good luck to you my friend.....
 
Hi gugaplex,

Like you say, I think it all depends on trading style.

I should stress that I won't be getting involved in any of the stocks I mentioned - I just think that they are the strongest stocks in the particular industries that you highlighted.


Good luck with your trading!


Thanks


Damian
 
Another "Hot Buy", just bought TOA today at $10.11...

Technical Olympic USA (TOA) is a home-builder that has seen an extreme pummeling of its stock. So much of a schlacking, that the market values the shares at nearly half of its Book Value (0.55). Also, TOA has a forward P/E ratio of only 5.19, a PEG ratio of 0.23, and a Return on Equity of 29%!

These numbers jump out at any value investor. The company has faced some scrutiny over a joint venture that they likely will have to write-off, but the stock already reflects this issue and then some. The 5-year chart above shows how badly TOA has been trashed by the market, and how there is a great deal of up-side potential to be had...

Good Luck
 
Guga - me thinks Phelps Dodge 8276+411(not just the Morgan Stanley upgrade ....... it gapped up after major low)

and Conoco 5788+110 (gap up after 52L) now look interesting......
 
Hook Shot said:
Guga - me thinks Phelps Dodge 8276+411(not just the Morgan Stanley upgrade ....... it gapped up after major low)

and Conoco 5788+110 (gap up after 52L) now look interesting......
Click to expand...

For a trade these stocks look good, but as a longer-term play, I would stay away....


Good luck....
 
Your'e right ..................... but there is something funny going on which I can't explain!
Lets see what happens....

HS
 
Hook Shot said:
Your'e right ..................... but there is something funny going on which I can't explain!
Lets see what happens....

HS
Click to expand...

Hey, if you can't explain it then stay away from it. Hedge funds may be manipulating the stock which is why something funny is going on. You are better off buying stocks out of favor than over-valued stocks that are destined for declines...


Best of luck HOOK.....
 
looks to me if it could go to $10 or there abouts then its a good buy IMO
 
gugaplex said:
Hey, if you can't explain it then stay away from it. Hedge funds may be manipulating the stock which is why something funny is going on. You are better off buying stocks out of favor than over-valued stocks that are destined for declines...


Best of luck HOOK.....
Click to expand...

Guga
Thanks for the Luck - Phelps Dodge took off like a ....... 8300 to 9200 by today (under a week- amazing!)
Now all we need is Conoco to get off it's ....... and make me some money.

Hook Shot.
 
I purchased Powerwave Technologies (PWAV) today @ $5.89 because it is a great value/growth investment. The company provides technologies for wireless communications networks like Cingular and Nokia. PWAV will benefit from the coming boom in wireless broad-band speed phones (3G) that the majority of consumers will upgrade to as prices decline. Consumers will increasingly rely on their cell phones and lap-tops for more functionality such as video, internet, etc.

Another great reason for investing in PWAV is the low valuations. The stock is trading at a mere 1.06 x’s Book Value, and has a forward P/E ratio of only 14. PWAV may have lower to go over the short-term, but I would not be surprised if it hit $20 over the next 3-4 years. This makes the stock a low risk/high reward investment.
 
Hi gugaplex,

Looking at your trading style, I would say that you certainly like to bottom-fish!

PWAV is hanging around at about a 3 year low and to me looks risky, but I think our trading styles are radically different !

Personally, if I was looking for a growth stock in PWAV's industry sector (ie - Telecom Equip) I would be going straight for DTV - a stock that's in a strong uptrend with solid recent earnings performances.

But, that's just me of course !

Each to their own !


Thanks

Damian
 
Hook Shot said:
Guga
Thanks for the Luck - Phelps Dodge took off like a ....... 8300 to 9200 by today (under a week- amazing!)
Now all we need is Conoco to get off it's ....... and make me some money.

Hook Shot.
Click to expand...

Taken Profits on Phelps Dodge as it hits the downtrend line at 9200 luvly profit. Will re-enter on pbk

It will probably blow 9200 away now I'm out...!!
 
damianoakley said:
Hi gugaplex,

Looking at your trading style, I would say that you certainly like to bottom-fish!

PWAV is hanging around at about a 3 year low and to me looks risky, but I think our trading styles are radically different !

Personally, if I was looking for a growth stock in PWAV's industry sector (ie - Telecom Equip) I would be going straight for DTV - a stock that's in a strong uptrend with solid recent earnings performances.

But, that's just me of course !

Each to their own !


Thanks

Damian
Click to expand...

I hear ya, but the reason I like PWAV is because it possesses both good growth prospects and attractive valuations. DTV is a good growth play, but it trades at 4 x's book value. PWAV trades at 1.06 x's book. Maybe both will rocket up from here, but I will sleep a little easier at night knowing that PWAV is pretty darn close to its bottom, and there is little to no hype in the share price.
 
gugaplex said:
Nudder "Hot Buy" for ya, buy BRCM on a dip. May trade down to $27 at worst, but has up-side potential to $40 within 6 months.

Good luck....
Click to expand...

Watch BRCM this coming week. It trades at $29.72 today, but has good potential to break out to $32-33 area before earnings on Thur 10/19. Earnings will likely be weaker than expected, but guidance will be key. If they issue upbeat estimates, expect the stock to rocket to high $30's. If the outlook is a bit weak, the stock may still do well because the negativity is priced into the stock. With consumers paying less for energy, look for a nice holiday season where gadgets that run on BRCM chips will be snatched up.
 
Hook Shot said:
Your'e right ..................... but there is something funny going on which I can't explain!
Lets see what happens....

HS
Click to expand...


What happened was Phelps blew to 9550 (tipped at 8300) making new daily highs every day since tip. Me thinks I got out too early - but still profitable. Conoco is now getting busy now 6000 (tipped at 5788 ...but you could have got it for 5730 next day...) Go conoco - next 6100 ?

OOOOOOOOOHHHHH !!- I think I hear an ugprade coming Mystery Stock is 2442 can this hot trend really continue ?

HS (hot xxxx)
 
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