Issue 342

Posted: January 31st, 2011 | Author: WMS

Market Strategies

Covering Investing Success Strategies For
Stocks – Bonds – Interest Rates – Natural Resources – Currencies – Venture Capital – Gold

A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King
Bill Chippas
Charles Moskowitz

January 31, 2011; Market Strategies Guide To Successful Trading

We give great entries
Trading Options are a timely event , Since we can only report weekly, Your Own Money Management
on Options Trading may be more timely to Take your Profits/Losses

New Stock Recommendations

The Energy Solutions ( ES: $ 5.89 ) finally broke out last week. Hold longs from June 11, 2010. Raise the protective sell stop to $ 5.25. Buy the MDH. Use opening prices Monday for calculation purposes.

Buy Jones Soda ( JSDA: $ 1.40 ); sell stop $ 1.28.

MDH…MHI Hospitality..

This hotel/motel REIT has spent the past year and a half between $1.75 and $3.50 and has recently broken out of a 7 month base. While the stock is a bit over- bought, a purchase in the $2.45 to $2.55 area should be very rewarding.

Fundamentally, the more favorable business outlook should play into this market very well. The Company owns over 2000 rooms in upper-level hotels (Hilton / Doubletree) and although they are heavily leveraged, they sell at a 40% discount to book while their competitors are valued at 1.4 to 1.6 times book, and price to sales of .3 or less than half the industry average. The Company faces the challenge of a refinancing debt shortly, but a favorable outcome should eliminate the current discounted value. Should they reinstate the dividend, I would expect a move of 150-250 %.

Issue 341

Posted: January 24th, 2011 | Author: WMS

Market Strategies

Covering Investing Success Strategies For
Stocks – Bonds – Interest Rates – Natural Resources – Currencies – Venture Capital – Gold

A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King
Bill Chippas
Charles Moskowitz

January 24, 2011; Market Strategies Guide To Successful Trading

We give great entries
Trading Options are a timely event , Since we can only report weekly, Your Own Money Management
on Options Trading may be more timely to Take your Profits/Losses

New Stock Recommendations

Sell the ZSL on the open Monday. If not already long, buy the CHBT at $ 13 the 50 day M.A. stop at $ 11. Buy the Baron Energy ( BROE $ 0.075 ) half position ( $ 2,500 ). Income seekers should buy the Buy the JNK at 40.10. We won’t use this for calculation purposes.

MDH…MHI Hospitality..

This hotel/motel REIT has spent the past year and a half between $1.75 and $3.50 and has recently broken out of a 7 month base. While the stock is a bit over- bought, a purchase in the $2.45 to $2.55 area should be very rewarding.

Fundamentally, the more favorable business outlook should play into this market very well. The Company owns over 2000 rooms in upper-level hotels (Hilton / Doubletree) and although they are heavily leveraged, they sell at a 40% discount to book while their competitors are valued at 1.4 to 1.6 times book, and price to sales of .3 or less than half the industry average. The Company faces the challenge of a refinancing of debt shortly, but a favorable outcome should eliminate the current discounted value. Should they reinstate the dividend, I would expect a move of 150-250 %.

Issue 340

Posted: January 18th, 2011 | Author: WMS

Market Strategies

Covering Investing Success Strategies For
Stocks – Bonds – Interest Rates – Natural Resources – Currencies – Venture Capital – Gold

A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King
Bill Chippas
Charles Moskowitz

January 18, 2011; Market Strategies Guide To Successful Trading

We give great entries
Trading Options are a timely event , Since we can only report weekly, Your Own Money Management
on Options Trading may be more timely to Take your Profits/Losses

FUNDAMENTAL NEWS

Following the huge 349.16 down week November 17th, the Dow has now had nine consecutive up weeks. Steve Jobs illness will weigh on the markets especially NASDAQ. Please read our comments.

All major indicies rallied last week led by the Russell up 2.51%. followed by Nasdaq up 1.93% and then the S&P 500 up 1.71%. Transports continued their winning ways up 0.96%.

The Nasdaq 100, QQQQ, now at 57.00 has exceeded its November 14, 2007 high of 55.07and now challenging levels not seen since March 2001.

Energy, Technology and Financials led the rally last week. The XLE ( Energy ETF ) gained 3.5%; The SCO ( SCO: 10.03 ) the ultra short crude oil ETF fell $ 0.41 or 4%….goes up as crude oil goes down. The XLK ( technology ETF ) rose 1.6% while the XLF ( financial ETF ) gained 3.1%. Conversely, the FAZ, ( FAZ: $ 8.26 ) – $ 0.74 a triple inverse of the long financials fell 9% on the week.

Not surprisingly, Both Oil and Gas and Technology led all ten Dow Industrial Groups. Oil and Gas rose 3.56% and Technology 2.34%. Last week Tech rose 2.72% making its two-week gain more than 5%. Apple reports earnings Monday afternoon which is likely to be a climactic event.

2011 has gotten off to a bullish start with a respectable Santa Claus Rally and a positive First Five Days. Santa delivered a 1.1% S&P 500 gain and the First Five a 1.1% gain. Today’s non-farm payroll report is another encouraging sign that the economic recovery is continuing. Not as quickly as hoped, but continuing nonetheless. 103,000 new workers were added to payrolls, the unemployment rate fell 0.4% to 9.4% and there were solid upward revisions to the October and November reports. 

The last 38 up First Five Days were followed by full-year gains 33 times for an 86.8% accuracy ratio and a 13.9% average gain in all 38 years. In pre-presidential election years this indicator has a solid record. In the last 15 pre-presidential election years 12 full years followed the direction of the First Five Days; however, 2007 was not one of these years. The average full-year S&P 500 gain in the last 15 pre-election years is 18.3%. (2011 Stock Trader’s Almanac, page 14). There has not been a down pre-election year since Germany invaded Poland in 1939 and triggered World War II.