Wiser Trader Stocks and Options Newsletter

______________________________________________________________________________

 

Issue No. 77  May 22, 2006                           Prescott, Arizona                       Systems@WiserTrader.com

______________________________________________________________________________

 

1.0   Trading

     

      The character of the market has changed dramatically over the past month.

 

1.1 Transition

 

      There is a vast difference of opinion regarding whether the economy is slowing and whether the Fed may over tighten, even among Fed members.  Hold on to your hats.  Commodities have been hammered.  Bond buying has raised and then lowered treasury yields.  The dollar is up.  Oil prices are down.  Growth stocks that have led the market are being beaten down the most (Note to self.).  Indeed nothing passed the Growth-Momentum screen this week.  With these contradictory indications, the market is trying to come to grips with the reality of inflation and the possibility that overnight interest rates could approach levels significantly higher than many believe.  Respectable analysts have forecasted a maximum rate of 5.0% while the latest estimates go as high as 6.0% by the end of 2006.

 

 

FIGURE 1A

 

 

 

© 2006 WiserTrader.com, LLC.  Members of wisertrader.com are neither licensed brokers nor licensed advisors.  Trades discussed represent recommendations made by the editor for the wisertrader.com portfolio.  The newsletter and web site are for information only and should not be considered as personal advice.  While it is believed that the posted information is factual, mistakes can be made in transcription.  Investors should trade stocks only after verifying all information and consulting with a licensed broker or adviser.  WiserTrader.commarkets third party trading systems but has no other affiliation with trading system companies. 

   

 

 

     The intraday Williams %R pattern in Figure 1B was seen three times this week.  A snapshot of Friday intraday trading shows how the 5-index Williams %R was locked down at -100 with zero range.  The 200-day SMA for the 5-index indicator has moved to -43.

 

 

FIGURE 1B

 

 

 

      The S&P 500 tested its 200-day SMA on Friday, as seen in Table 1A.  The NASDAQ is 1.57% below its 200-day SMA, having gone negative for the year.  Technology and small caps have underperformed the broader market over the past month, as seen by the percentage decline of the NASDAQ and Russell 2000, respectively.

 

 

TABLE 1A

Major Indices

Major Indices Year to Date

Relative to SMA 200

200 Day High Close

Relative to High

 

12/30/05

5/19/06

% Chg

Today

Last Week

DOW

10717.5

11,144.06

3.98%

2.84%

7.68%

11642.7

-4.28%

NASDAQ

2205.32

2,193.88

-0.52%

-1.57%

4.16%

2370.88

-7.47%

S&P500

1248.29

1,267.03

1.50%

0.74%

5.31%

1325.76

-4.43%

Russell 2000

673.22

722.54

7.33%

3.39%

11.33%

781.83

-7.58%

NYSE

7753.95

8176.06

5.44%

3.96%

10.15%

8646.96

-5.45%

 

 

 

      One ray of hope can be found when comparing relative percentage gains over the past 4 days in Figure 1C.  The Russell 2000 and NASDAQ have begun to outpace the DOW and S&P 500, respectively.

 

 

 

FIGURE 1C

 

 

 

 

 

 

2.0 Market Analysis

 

      The core CPI is running slightly above the Fed forecast.  This leads one to expect that rate hikes will continue, perhaps slowing the economy and lowering earnings expectations.  Because of this, market sentiment has turned negative, well in excess of actual fundamentals. 

 

      Key industry ETF’s in Table 2A are Biotech and Semiconductors, which confirm the NASDAQ.  Transportation confirms the Dow Jones Industrial Average according to Dow Theory.  Banking and Financials are confirming indicators for the S&P 500.  Gold and Housing are respective indicators for the inverse health of the currency (inflation) and the capacity for consumer spending. 

 

 

Table 2A

Indices, Key Industry ETF’s and Sector SPDR’s

 

1 month

1 wk ago

2 wks ago

3 wks ago

4 wks ago

Dow Jones Industrial Index

-1.8%

-2.1%

-1.7%

1.9%

0.2%

NASDAQ Composite Index

-6.4%

-2.2%

-4.2%

0.9%

-0.9%

S & P 500 Index

-3.4%

-1.9%

-2.6%

1.2%

-0.1%

NYSE Composite Index

-3.4%

-2.8%

-2.6%

1.9%

0.1%

Russell 2000 Index

-6.4%

-2.7%

-5.0%

2.3%

-1.0%

HGX, Phil. Housing Index

-12.9%

-4.4%

-5.1%

0.7%

-4.6%

IYR, Real Estate

-4.4%

-1.5%

-3.2%

0.7%

-0.4%

GLD, GOLD

3.8%

-7.8%

4.6%

4.5%

3.0%

RKH, Banking

-0.6%

-1.9%

-3.4%

0.6%

4.2%

IYT, Transportation

-1.5%

-4.2%

-2.4%

6.4%

-1.0%

SMH, Semiconductors

-6.0%

-2.1%

-5.6%

1.1%

0.6%

BBH, Biotechnology

-5.2%

0.4%

-1.9%

0.9%

-4.6%

OIH, Oil Infrastructure

-10.2%

-7.4%

-4.6%

4.8%

-3.1%

XLE, Energy

-9.6%

-4.8%

-3.6%

3.0%

-4.4%

XLU, Utilities

-0.4%

-0.5%

-2.9%

2.7%

0.2%

XLB, Materials

-6.3%

-4.6%

-2.5%

3.4%

-2.6%

XLI, Industrial

-2.4%

-2.5%

-2.1%

3.3%

-1.0%

XLK, Technology

-6.6%

-1.8%

-4.3%

0.3%

-1.0%

XLV, Healthcare

-2.8%

-0.4%

-1.3%

-0.7%

-0.5%

XLF, Financials

-1.6%

-1.8%

-2.8%

0.6%

2.5%

XLP, Consumer Staples

0.9%

-0.2%

-1.6%

1.0%

1.8%

XLY, Consumer Discretionary

0.0%

-1.2%

-1.5%

1.5%

1.2%

 

 

 

      The VIX and VXN volatility indexes are listed in Table 2B.

 

 

Table 2B

Volatility

Indicator

Current

Last Week

2 Weeks Ago

Complacent

Cautious

VIX **

17.2

14.2

11.6

< 20

> 50

VXN ***

21.0

17.1

14.4

< 30

> 70

**   Above 20 day SMA = Short-term sell signal.

*** Above 20 day SMA = Short-term sell signal.

 

 

 

      Figure 2A compares the major averages with key ETF’s and Sector SPDR’s.

 

 

FIGURE 2A

 

 

 

 

 

 

 

 

Table 2C

Market Summary

 

Industries are listed according to the Dow Jones Classification System

 

 Major Indices 
 For the Past Week:
 Dow Jones     -2.1%
 NASDAQ        -2.2%
 S&P500 Index  -1.9%
 Russell 2000  -2.7%
 NYSE          -2.8%
 
 30 Year Bond 5.137%
 10 Year Note 5.054%
 
 Leading Industries
 For the Past Week:
 Aerospace & Defense
 Apparel Retailers
 Financial Administration
 Distillers & Vintners
 Tobacco
 Drug Retailers
 Soft Drinks
 Beverages
 Food & Drug Retailers
 Mobile Telecommunications
 
 Lagging Industries
 For the Past Week:
 Platinum & Precious Metals
 General Mining
 Coal
 Mining
 Nonferrous Metals
 Recreational Services
 Industrial Metals
 Gold Mining
 Basic Resources
 Steel
 Leading Industries
 For the Past Month:
 Brewers
 Broadcasting & Entertainment
 Hotels
 Personal Products
 Beverages
 Media Agencies
 Food & Beverage
 Media
 Food Producers
 Food Products
 
 Lagging Industries
 For the Past Month:
 Platinum & Precious Metals
 General Mining
 Home Construction
 Toys
 Specialized Consumer Services
 Leisure Goods
 Gold Mining
 Consumer Electronics
 Exploration & Production
 Forestry
 
 Crude Oil $69.30
 
 Gold for the past 30 days:
 USD    +6.04%
 CAD    +4.36%
 CHF    +1.10%
 GBP    +0.54%
 EUR    +2.38%
 JPY    +0.79%

 

 

 

 

 

 

 

 


3.0 Procedure

 

      The following watch lists contain stock candidates for consideration.  They are not necessarily trades.  Categories include checklists for insider buying and cash rich companies, as well as, filters that employ stock picking methods used by master traders.  The information is not meant to imply any endorsement or sponsorship by these master traders.

 

      Current stock rankings are based on the degree to which stocks are overbought or over sold based on the 28-period Williams %R for the past two trading days.  Two columns are labeled “%R1” and “%R2” with “%R2” indicating the Williams %R for the most recent trading day.  Of course, values more negative than -80 are oversold and those less negative than -20 are overbought.

 

      One should keep in mind that oversold stocks are not necessarily ready to move upward.  They could very well be in a condition of continuous decline.  The lists are meant to serve as a starting point for further due diligence. 

 

      A column labeled “Monthly % Gain” was added to show the inverse relationship between price action over the past month and the Williams %R.  The change from a 10-period Williams %R with a weekly percent change to a 28-period Williams %R with a monthly percent change was done to reflect a longer term view.

 

      The “Reference” is the date that a stock passed the indicated filter and was first added to or returned to the list.  The “% Change” is how the price has changed since the reference date.  Stocks that are down 10% or more after being listed are removed for a period of about two months.  The “% from Max” is the percentage the price has declined from the maximum price reached since the reference date.  Stocks that are down 8% from their highs after being listed are flagged in yellow.  Stocks that are down 15% from their highs after being listed are removed for two months.  More information on filters is available on the web site.

 

      A performance summary of filtering techniques for checklists and master trader selection methods is given in Table 3A. 

 

 

Table 3A

Stock Filter Summary

Filter

Avg. % Change Since Listed

Avg. % Change Monday

1 Month

1 Week Ago

2 weeks Ago

3 Weeks Ago

4 Weeks Ago

Net Insider Buying

4.9%

-0.3%

-1.8%

-3.3%

1.8%

0.6%

-0.9%

Cash Rich Companies

2.2%

-1.7%

-0.9%

-5.1%

1.0%

3.4%

-0.3%

Price to Free Cash Flow

4.0%

1.0%

1.4%

-1.0%

-0.9%

1.7%

1.7%

Growth Momentum

7.0%

0.9%

-6.8%

-5.5%

-3.1%

4.7%

-2.7%

Lynch

23.9%

0.2%

-3.3%

-3.1%

-3.4%

2.8%

0.6%

Buffett

19.9%

0.0%

-2.5%

-3.4%

-3.8%

3.4%

1.5%

Graham

9.9%

0.5%

-3.8%

-2.1%

-3.3%

1.9%

-0.2%

Templeton

4.7%

0.2%

-1.3%

-0.7%

-1.6%

0.9%

0.1%

 Zweig

2.4%

0.5%

-5.4%

-3.5%

-3.0%

3.2%

-2.0%

Average

8.8%

0.1%

-2.7%

-3.1%

-1.8%

2.5%

-0.2%

 

 

Key

Passed Recent Filter

Price declined by half of stop loss setting

Oversold  based on  Williams %R  (%R2 is most recent)

Overbought based on Williams %R  (%R2 is most recent)

 

 

      Companies that have experienced net insider buying within the past 6 months of 5% or more of issued stock are listed in Table 3B.  These stocks should also appear in one of the master trader screens or meet additional screening criteria before being given serious consideration.  This list is a mixture of stocks that are optionable and those that are not.

 

 

Table 3B

Net Insider Buying Check List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

EQS

04/13/06

0.0%

Equus II Incorporated

Financial

Investment Services

-7.2%

-4.9%

-87

-100

CWEI

05/12/06

0.0%

Clayton Williams Energy, Inc.

Energy

Oil & Gas Operations

-2.7%

-10.3%

-83

-84

ACME

05/12/06

-6.0%

ACME Communications, Inc.

Services

Broadcasting & Cable TV

-6.0%

-6.0%

-47

-49

LXU

12/23/05

30.7%

LSB Industries, Inc.

Basic Materials

Chemical Manufacturing

-7.8%

0.6%

-47

-47

NAHC

05/12/06

0.0%

National Atlantic Holdings Corporation

Financial

Insurance (Property & Casualty)

-1.5%

1.4%

-45

-42

 

 

      Companies with net cash positions that comprise at least 40% of their share price are listed in Table 3C.  These stocks should also appear in one of the master trader screens or meet additional screening criteria before being given serious consideration.  Again, this list is a mixture of stocks that are optionable and those that are not.

 

 

Table 3C

Capital Rich Companies Check List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

HRAY

05/19/06

0.0%

Hurray! Holding Co., Ltd. (ADR)

Services

Communications Services

0.0%

-25.8%

-54

-91

CLCT

05/19/06

0.0%

Collectors Universe, Inc.

Services

Business Services

0.0%

-10.0%

-86

-85

WSC

03/11/06

-0.9%

Wesco Financial Corporation

Conglomerates

Conglomerates

-2.9%

-0.1%

-41

-54

WSC

05/19/06

0.0%

Wesco Financial Corporation

Conglomerates

Conglomerates

0.0%

-0.1%

-41

-54

SCIX

04/07/06

8.3%

Scailex Corp., Ltd.

Technology

Computer Networks

-2.8%

8.0%

-24

-24

SCIX

05/19/06

0.0%

Scailex Corp., Ltd.

Technology

Computer Networks

0.0%

8.0%

-40

-24

ACTS

05/05/06

8.1%

Actions Semiconductor Co., Ltd. (ADR)

Technology

Semiconductors

0.0%

14.0%

-11

-11

 

 

      Table 3D was added to contain companies having a low price to free cash flow (P-FCF) less than 5.  Companies having P-FCF less than 10 are typically capable of financing the purchase of all their outstanding shares of stock.

 

 

Table 3D

Price to Free Cash Flow Companies Check List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

RHD

05/19/06

0.0%

R.H. Donnelley Corp.

Services

Advertising

0.0%

-4.7%

-91

-96

FIS

05/12/06

-0.1%

Fidelity National Information Services

Services

Business Services

-1.4%

-0.1%

-86

-85

RKT

05/12/06

0.1%

Rock-Tenn Company

Basic Materials

Paper & Paper Products

-0.3%

2.2%

-87

-60

KWD

03/04/06

19.9%

Kellwood Company

Consumer Cyclical

Apparel/Accessories

-5.4%

2.0%

-72

-60

MFW

05/19/06

0.0%

M & F Worldwide Corp.

Consumer Non-Cyclical

Beverages (Non-Alcoholic)

0.0%

-0.1%

-26

-32

 

 

      For the Peter Lynch style screen in Table 3E, the number of selections is reduced by selecting only optionable stocks having P/E’s less than 30. 

 

 

 

Table 3E

Peter Lynch Value Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

CAE

04/21/06

-5.6%

Cascade Corporation

Capital Goods

Misc. Capital Goods

-8.4%

-5.6%

-92

-92

KOF

04/29/05

36.9%

Coca-Cola FEMSA, S.A. (ADR)

Consumer Non-Cyclical

Beverages (Non-Alcoholic)

-9.3%

-7.0%

-90

-90

TM

12/13/04

46.5%

Toyota Motor Corporation (ADR)

Consumer Cyclical

Auto & Truck Manufacturers

-11.0%

-6.5%

-89

-89

AZN

02/03/06

13.2%

AstraZeneca PLC (ADR)

Health Care

Major Drugs

-4.9%

-1.8%

-58

-63

PKX

02/17/06

24.5%

POSCO (ADR)

Basic Materials

Iron & Steel

-6.9%

-3.6%

-47

-52

SKM

02/07/05

26.6%

SK Telecom Co., Ltd. (ADR)

Services

Communications Services

-7.9%

-0.7%

-50

-50

BTI

08/12/05

25.0%

British American Tobacco (ADR)

Consumer Non-Cyclical

Tobacco

-3.6%

-1.1%

-44

-49

 

 

      For the Growth Momentum screen in Table 3F, the number of selections is reduced by selecting only optionable stocks having P/E’s less than 30. 

 

 

Table 3F

Growth Momentum Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

HCC

10/21/05

15.5%

HCC Insurance Holdings, Inc.

Financial

Insurance (Property & Casualty)

-9.8%

-7.7%

-93

-93

ENDP

02/17/06

-3.5%

Endo Pharmaceuticals

Health Care

Biotechnology & Drugs

-14.0%

-8.1%

-92

-92

SYT

04/08/05

26.9%

Syngenta AG (ADR)

Basic Materials

Chemical Manufacturing

-12.0%

-0.4%

-92

-92

CHE

05/06/05

36.1%

Chemed Corporation

Services

Business Services

-13.7%

-13.3%

-89

-89

JEF

04/21/06

-9.7%

Jefferies Group, Inc.

Financial

Investment Services

-12.5%

-9.7%

-88

-88

GS

04/21/06

-9.9%

Goldman Sachs Group, Inc.

Financial

Investment Services

-9.9%

-9.9%

-86

-86

COG

05/12/06

-8.1%

Cabot Oil & Gas Corporation

Energy

Oil & Gas Operations

-8.1%

-13.3%

-85

-85

APC

02/10/06

0.0%

Anadarko Petroleum Corporation

Energy

Oil & Gas Operations

-12.3%

-12.2%

-82

-82

BEN

11/04/05

-2.6%

Franklin Resources, Inc.

Financial

Investment Services

-14.3%

-8.4%

-81

-81

BHP

09/09/05

37.0%

BHP Billiton Limited (ADR)

Basic Materials

Metal Mining

-12.1%

-5.8%

-80

-80

ET

10/21/05

36.5%

E*TRADE FINANCIAL Corporation

Financial

Investment Services

-11.5%

-11.5%

-79

-79

CHB

02/17/06

-8.4%

Champion Enterprises, Inc.

Capital Goods

Construction Services

-14.2%

-9.4%

-78

-78

CSR

05/12/06

-6.2%

Credit Suisse Group (ADR)

Financial

Insurance (Life)

-6.2%

-1.9%

-68

-68

KCS

05/12/06

-6.6%

KCS Energy, Inc.

Energy

Oil & Gas Operations

-6.6%

-7.3%

-63

-63

GRMN

03/03/06

20.6%

Garmin Ltd.

Technology

Communications Equipment

-8.6%

3.7%

-59

-59

MDR

05/12/06

-5.4%

McDermott International

Capital Goods

Construction Services

-5.4%

7.4%

-47

-47

 

 

      The filter for Warren Buffet style stock picking in Table 3G is for the intermediate to long term.  Two requirements were added.  One was to include only optionable stocks in order to find LEAPS opportunities.  The other requirement was to include only those stocks having a PE of 17 or less.

 

 

Table 3G

Warren Buffett Value Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

APA

05/12/06

-6.2%

Apache Corporation

Energy

Oil & Gas Operations

-6.2%

-14.1%

-54

-88

MTH

05/12/06

-8.2%

Meritage Homes Corporation

Capital Goods

Construction Services

-8.2%

-8.4%

-49

-87

AH

02/03/06

10.4%

Armor Holdings, Inc.

Capital Goods

Aerospace and Defense

-13.6%

-8.8%

-86

-86

NUE

04/15/05

115.1%

Nucor Corporation

Basic Materials

Iron & Steel

-12.0%

-7.5%

-85

-85

NKE

09/23/05

-3.2%

NIKE, Inc.

Consumer Cyclical

Footwear

-13.9%

-5.2%

-85

-84

UNT

03/03/06

0.5%

Unit Corporation

Energy

Oil & Gas Operations

-11.6%

-8.4%

-50

-84

RS

04/15/05

120.0%

Reliance Steel & Aluminum

Basic Materials

Misc. Fabricated Products

-13.4%

-9.2%

-84

-84

PSUN

05/05/06

-8.3%

Pacific Sunwear of CA

Services

Retail (Apparel)

-9.4%

0.7%

-70

-82

OXY

03/03/06

-1.0%

Occidental Petroleum Corporation

Energy

Oil & Gas Operations

-12.2%

-12.1%

-76

-76

NAT

05/12/06

-4.8%

Nordic American Tanker Shipping Limited

Transportation

Water Transportation

-4.8%

-2.4%

-61

-75

RCII

10/21/05

57.4%

Rent-A-Center, Inc

Services

Rental & Leasing

-9.8%

-1.8%

-72

-72

HDI

10/14/05

1.0%

Harley-Davidson, Inc.

Consumer Cyclical

Recreational Products

-10.9%

-3.3%

-78

-69

RI

09/02/05

33.7%

Ruby Tuesday, Inc.

Services

Restaurants

-10.0%

-5.2%

-63

-63

CCRT

12/30/05

0.4%

CompuCredit Corporation

Financial

Consumer Financial Services

-8.2%

-1.9%

-62

-62

BTI

12/30/05

11.8%

British American Tobacco (ADR)

Consumer Non-Cyclical

Tobacco

-3.6%

-1.1%

-44

-49

ABFS

04/29/05

36.6%

Arkansas Best Corporation

Transportation

Trucking

-5.7%

0.9%

-42

-42

ANF

03/03/06

3.9%

Abercrombie & Fitch Co.

Services

Retail (Apparel)

-4.6%

6.2%

-35

-35

AEOS

03/10/06

11.4%

American Eagle Outfitters

Services

Retail (Apparel)

-3.5%

4.9%

-34

-34

FNF

10/21/05

13.3%

Fidelity National Financial

Financial

Insurance (Property & Casualty)

-4.7%

18.0%

-33

-33

JBHT

03/31/06

13.2%

J.B. Hunt Transport Services, Inc.

Transportation

Trucking

-5.6%

4.3%

-32

-32

 

 

 

      Stocks from Benjamin Graham’s style of utility investing are listed in Table 3H.  A requirement was added to include only those stocks having a PE of 17 or less. 

 

 

Table 3H

Benjamin Graham Utility Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

EON

03/10/06

-0.1%

E.ON AG (ADR)

Utilities

Electric Utilities

-10.2%

-9.0%

-95

-95

VVC

03/03/06

-1.1%

Vectren Corporation

Utilities

Natural Gas Utilities

-6.6%

-5.2%

-92

-92

ATO

04/01/05

-2.3%

Atmos Energy Corporation

Utilities

Natural Gas Utilities

-11.6%

-1.5%

-87

-87

WGL

12/23/05

-8.1%

WGL Holdings, Inc.

Utilities

Natural Gas Utilities

-10.9%

-5.3%

-86

-86

KEP

01/10/05

71.1%

Korea Electric Power Corporation (ADR)

Utilities

Electric Utilities

-14.2%

-8.4%

-85

-85

OKE

11/11/05

15.8%

ONEOK, Inc.

Utilities

Natural Gas Utilities

-7.5%

-6.6%

-84

-84

SRE

01/10/05

21.8%

Sempra Energy

Utilities

Natural Gas Utilities

-9.6%

-4.1%

-80

-80

PGN

01/10/05

-6.5%

Progress Energy, Inc.

Utilities

Electric Utilities

-9.9%

-2.7%

-76

-76

ATG

10/21/05

6.1%

AGL Resources Inc.

Utilities

Natural Gas Utilities

-3.4%

-0.5%

-65

-65

UGI

12/30/05

9.9%

UGI Corporation

Utilities

Natural Gas Utilities

-4.4%

1.6%

-42

-44

UU

06/10/05

2.7%

United Utilities PLC (ADR)

Utilities

Electric Utilities

-2.0%

0.1%

-36

-36

 

 

 

      Optionable stocks from John Templeton’s style of investing are listed in Table 3I. 

 

 

Table 3I

John Templeton Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

LEN

05/19/06

0.0%

Lennar Corporation

Capital Goods

Construction Services

0.0%

-3.5%

-96

-92

WSM

09/02/05

7.7%

Williams-Sonoma, Inc.

Services

Retail (Specialty Non-Apparel)

-9.3%

-2.0%

-89

-89

SNV

05/27/05

-7.7%

Synovus Financial Corp.

Financial

Regional Banks

-9.9%

-1.7%

-87

-87

ORLY

01/20/06

4.4%

O'Reilly Automotive, Inc.

Services

Retail (Specialty Non-Apparel)

-12.6%

-7.4%

-87

-87

SPF

05/12/06

0.4%

Standard Pacific Corp.

Capital Goods

Construction Services

0.0%

-6.8%

-83

-82

FLIR

04/28/06

0.5%

FLIR Systems, Inc.

Capital Goods

Aerospace and Defense

-2.0%

-5.5%

-80

-80

GBCI

05/05/06

-5.7%

Glacier Bancorp, Inc.

Financial

Regional Banks

-5.7%

-5.5%

-78

-78

HHS

10/28/05

4.0%

Harte-Hanks, Inc.

Services

Printing & Publishing

-11.7%

-2.6%

-75

-75

GTRC

03/03/06

0.6%

Guitar Center, Inc.

Services

Retail (Specialty Non-Apparel)

-8.0%

-0.8%

-71

-71

HDI

02/24/06

-5.4%

Harley-Davidson, Inc.

Consumer Cyclical

Recreational Products

-6.8%

0.2%

-78

-69

LOW

11/18/05

-5.0%

Lowe's Companies, Inc.

Services

Retail (Home Improvement)

-9.8%

-1.0%

-67

-67

CHD

11/18/05

9.1%

Church & Dwight Co., Inc.

Consumer Non-Cyclical

Personal & Household Products

-3.9%

0.4%

-62

-62

EWBC

12/30/05

6.8%

East West Bancorp, Inc.

Financial

Regional Banks

-4.7%

-2.6%

-55

-55

AMSG

10/14/05

10.5%

AmSurg Corp.

Health Care

Healthcare Facilities

-5.5%

6.1%

-46

-47

MMM

05/12/06

-2.6%

3M Company

Conglomerates

Conglomerates

-3.2%

-0.9%

-45

-45

GISX

12/30/05

13.5%

Global Imaging Systems, Inc.

Technology

Office Equipment

-3.5%

3.4%

-33

-33

CPS

05/27/05

12.3%

ChoicePoint Inc.

Services

Business Services

-2.8%

3.0%

-29

-29

JNJ

02/17/06

1.4%

Johnson & Johnson

Health Care

Major Drugs

-1.8%

1.8%

-19

-27

DGX

08/19/05

15.1%

Quest Diagnostics Incorporated

Health Care

Healthcare Facilities

-1.9%

5.0%

-4

-15

MIK

12/30/05

10.3%

Michaels Stores, Inc.

Services

Retail (Specialty Non-Apparel)

-0.4%

4.6%

-13

-14

EDMC

12/16/05

28.6%

Education Management Corp

Services

Schools

0.0%

2.3%

-2

-2

 

 

      Optionable stocks from Martin Zweig’s style of investing are listed in Table 3J. 

 

 

Table 3J

Martin Zweig Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

LSTR

02/10/06

-2.6%

Landstar System, Inc.

Transportation

Trucking

-12.7%

-8.5%

-93

-93

PCP

05/12/06

-7.0%

Precision Castparts Corp.

Capital Goods

Aerospace and Defense

-7.0%

-9.3%

-92

-92

STRA

01/13/06

9.3%

Strayer Education, Inc.

Services

Schools

-9.9%

-4.1%

-91

-91

POOL

06/10/05

27.1%

SCP Pool Corporation

Consumer Cyclical

Recreational Products

-12.7%

-8.8%

-89

-89

UCBH

04/13/06

-9.0%

UCBH Holdings, Inc.

Financial

Regional Banks

-11.3%

-10.0%

-89

-89

JEF

04/21/06

-9.7%

Jefferies Group, Inc.

Financial

Investment Services

-12.5%

-9.7%

-88

-88

MDU

01/27/06

0.5%

MDU Resources Group, Inc.

Utilities

Natural Gas Utilities

-6.0%

-4.1%

-87

-87

ORLY

03/10/06

-9.0%

O'Reilly Automotive, Inc.

Services

Retail (Specialty Non-Apparel)

-11.1%

-7.4%

-87

-87

COG

05/12/06

-8.1%

Cabot Oil & Gas Corporation

Energy

Oil & Gas Operations

-8.1%

-13.3%

-85

-85

MRO

04/28/06

-4.9%

Marathon Oil Corporation

Energy

Oil & Gas Operations

-8.1%

-12.3%

-84

-84

RRC

05/05/06

-8.8%

Range Resources Corp.

Energy

Oil & Gas Operations

-10.8%

-15.5%

-82

-82

BEN

10/28/05

2.5%

Franklin Resources, Inc.

Financial

Investment Services

-14.3%

-8.4%

-81

-81