My Stock of the Day: EXPO

As I said the other day, when searching for stocks worthy of deeper study, I often look first to Value Line’s reasonably consistent gainers across the last 10 calendar years and focus on those up double digits both for average gains in the 10 years and also in terrible 2008.

Here are some recent selections in alphabetical order:

AZO, BCPC, EXPO, FFIN, NTES, PG, SCL, SQM, WAB. 

Of late, I’ve featured just the three of those in bold type. Now, let’s check up on EXPO.

My 5-year Yahoo price-performance chart suggests more up trend to come for EXPO.

And my 3-month chart does, too.

Japan’s Recovery, Our Lesson?

After a long, long dark period in Japan’s economy, prime minister Shinzo Abe introduced a “bold economic stimulus strategy” when he took office late in December 2012. A deliberately weaker yen has ignited exports, the stock market, and consumer spending.

You can read all about it in Hiroko Tabuchi’s report in The New York Times of June 28.

The good results are certainly no surprise to Nobel Prize winner Paul Krugman, who has lobbied for stimulus from the beginnings of America’s darkening economic problems. Krugman is an op-ed columnist at the New York Times.

My Stock of the Day: BCPC

My stock of the day yesterday is my favorite when market chatter is bearish and scary and your best bet may not be to run to cash when your best source of monthly retirement income is from stock and/or fund dividends.

Today, let’s visit a bit with another stock that’s worthy of further technical and fundamental analysis: BCPC (Balchem Chemical).

Writing for Motley Fool, Seth Jason reports that Balchem’s inventories appear to be on the rise. If that’s so, now might not be a good time to acquire BCPC.

Even so, I believe the stock belongs on my watch list because of its 10-history, including positive performance in terrible 2008, suggest (to me) that BCPC is a stock that belongs in my portfolio. My guess is that it will recover right along with the stock market as people start buying stuff again—a pretty good sign that good stocks are in or near another bull market.

Others might say BCPC stock is now selling at or near a pullback low point.

That’s a judgment you need to make as a do-it-yourself portfolio manager.

My 5-year Yahoo chart suggests BCPC has had s significant up trend after every buying-opportunity pullback.

My 3-month chart suggests BCPC’s staying power served it well in the market pullback of the last few weeks.

Hedge Against a Market Collapse

I think many investors are scared to death of the securities markets thus far in 2013 because of all the Chicken Little warnings voiced by the marketing people who represent certain investment newsletters or blogs. After all, it’s true that doom and gloom do outsell Sweetness and Light.

I do recognize the possibility that current blather is correct from time to time, and I don’t know the future either, so I’ve searched for a benign way to hedge a positive outlook for securities when the chatter is scary.

When searching for stocks worthy of deeper study, I first look to Value Line’s reasonably consistent gainers across the last 10 calendar years and focus on those up double digits both for average gains in the 10 years and also in terrible 2008. Examples in alphabetical order:

AZO, BCPC, EXPO, FFIN, NTES, PG, SCL, SQM, WAB. 

Also, I look to Seeking Alpha’s Top 20 Dividend Growth Stocks for 2013. Examples (same way): ADP, INTC, LMT, RTN, WAG, WM.

Thirdly, I look to Seeking Alpha’s favored ETFs (same way): DIA, EPS, IPS, PRF, RWL, SDY, SSO, XLP.

For detailed analysis of worthy stocks and funds, I look to VectorVest.com, Nasdaq.com, and other of the excellent analytical resources I’ve mentioned in my blog posts. By now, perhaps you’ve found favorites of your own.

I Like Tech Breakthroughs

Also writing for Motley Fool, Alex Planes points out that electric cars are now selling better than hybrids, despite the great need nationally for more battery-charging infrastructure. 

Yes, he mentions TSLA (Tesla). I’m tempted by both the car and the stock.

Alex also covers five big advances in tech breakthroughs, naming apps as the biggest. He  points out that apps came to market in 2008 and are now directly and indirectly responsible for $1.7 billion in annual sales and 460,000 good jobs. 

I own two tech-breakthrough stocks (BIZM and SSYS) and I am looking to acquire more.

Evan Niu, CFA, also writing for Motley Fool, discusses these five breakthrough candidates: (AAPL (Apple), AMZN (Amazon), FB (Facebook), GOOG (Google), and MSFT (Microsoft). No surprises there.

My Stock of the Day: AZO

I think many investors are scared to death of the securities markets thus far in 2013 because of all the Chicken Little warnings voiced by the marketing people who represent certain investment newsletters. After all, it’s true that doom and gloom do outsell Sweetness and Light.

I do recognize the possibility that current blather is correct from time to time, and I too cannot know the future, so I’ve searched for a benign way to hedge a positive outlook for securities when the chatter is scary.

When searching for stocks worthy of deeper study, I often look first to Value Line’s reasonably consistent gainers across the last 10 calendar years and focus on those up double digits both for average gains in those 10 years and also in terrible 2008. Examples in alphabetical order:

AZO, BCPC, EXPO, FFIN, NTES, PG, SCL, SQM, WAB. 

Also, I look to Seeking Alpha’s Top 20 Dividend Growth Stocks for 2013. Examples (same way): ADP, INTC, LMT,RTN, WAG, WM.

Thirdly, I look to Seeking Alpha’s favored ETFs for dividends (same way): DIA, EPS, IPS, PRF, RWL, SDY, SSO, XLP.

My 5-year Yahoo chart for AZO shows a relatively smooth recovery from the lows of 2009.

My 3-month chart suggests the start yesterday of a potential recovery from AZO’s sideways trend of recent weeks. 

For detailed analysis of worthy stocks and funds, I look to VectorVest.com, Nasdaq.com, and other of the excellent analytical resources I’ve mentioned in my blog posts. By now, perhaps you’ve found favorites of your own. 

Video: 2013 Economic Assessments

Goldman Sachs has prepared videoed discussions of the global economic outlook for 2013. The nub of what’s said is reported by Allison Nathan, as follows:

“2013 is likely to be another year of quite slow growth in the U.S. and globally. The good news is that as the year goes on, the growth picture is likely to look a little bit better, and investors may be able to relax about some of the big picture risks that they’ve been worried about over the last couple of years.”

No one, not even Goldman Sachs, can possibly know the future, so we turn to educated guesses. Goldman’s are reputably among the most reliable.

We’re at the midpoint of 2013 now. Let’s see if more good news lies ahead in the next six months.

My Stock of the Day: SQM

For three months, this stock has been on my personal list of stocks to consider buying.

SQM (Sociedad Quimica y Minerea de) is a diversified chemical producer that averaged 45.3% yearly in the last 10 calendar years, including +42.76% in terrible 2008.

May 3-month Yahoo performance chart shows SQM in a major pullback. On June 14, Forbes reported SQM was oversold.

I bought SQM yesterday afternoon on a guess is that it is grossly oversold.

Another example from my latest list of 10 interesting securities (drawn from Value Line data) is FFIN, which I mentioned in a previous blog post. It averaged 14.61% for the 10 years and gained 50.92% in 2008.

Chances are, it is worthy of your further attention, to see if it is a good fit within your own investment strategy. Same goes for SQM.

Never forget this: All investments and savings are, like most other decisions we make in life, gambles on the unknowable future and thus subject to disappointment or loss.

Short on Money? You’re Not Alone

CNN Money reports that fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses, so as to help cushion the blow of a job loss, medical emergency or some other unexpected event. Also:

CNN Money quotes Bankrate.com in reporting that about 75% of us are living “paycheck to paycheck.”

And what’s the good news? America’s economic recovery should gain lots of force in 2014, says CNN Money in reporting the views of “a growing number of economists.”

My Stock of the Day: SSYS

Three companies make 3D printers, the tiny factories that “print” real things rather than apply ink to paper.

Malvin Pasternak discusses them in his article for Profitable Trading. Of the three, his favorite is SSYS.

My 5-year Yahoo chart shows a significant up trend despite two major pullbacks (in 2008-2009 and 2011).

My 3-month chart shows sharp up trends interrupted by relatively brief down trends.

I bought this stock yesterday.

Are Your Savings Safe?

Bankrate rates for safety not only banks but also thrift associations and credit unions. And it ranks banks and thrifts.  Also, Bankrate reports yields on bank certificates of deposit.

Consumer Affairs publicizes consumer complaints and reviews of banks and credit unions. What’s more:

The Federal Reserve invites consumers to contact it when you have a problem with a bank—and it lists what you need to know before filing your complaint.

For sample court complaints against banks, look to Complaints Web.

My Stock of the Day: KTCC

The American Association of Individual Investors is notable not only for its ongoing study of 77 investment strategies but also for its model portfolios.

Its Model Shadow Stock Portfolio is up double digits yearly for each of the last 10, 5, and 3 years—and +62.2% for the last 12 months and +32.8% in the first five months of 2013.

For low price/earnings, the stock portfolio’s leader is KTCC. My 5-year price-performance chart shows good progress for KTCC since the lows of 2009. And:

My three-month chart shows sharp ups and downs in sideways movement. It suggests KTCC may soon be at a pullback buy point. That’s where I hope to acquire it.

In alphabetical order, AAII’s list of stocks held in the model stock portfolio is headed by ADUS (Addus Homecare Corporation) and its passing companies list by ACY (Aerocentury Corp.).

For the same YTD period, the Model Fund Portfolio is +13.6% and 27.2% for the last 12 months.

Detailed information is made available only to AAII members. The price of membership is now $29 yearly. I've been a member for something like 30 years.

Done You Wrong? Complain

If your securities broker has lied to you, pressured you with unwanted phone calls, put your money into unsuitable securities, or bought for your account without your prior authorization, you can file a complaint with FINRA (Financial Industry Regulatory Authority).

Before you sign authorization to trade, check  out your broker online with the Securities and Exchange Commission.

FINRA does not deal with insurance issues.

To  check out an insurance agent or broker or to file a complaint about an insurance agent or broker, go online to your state’s insurance commissioner.

My Stock of the Day: NWY

AAII’s version of the momentum strategy for selecting stocks established by Richard Driehaus was up 23.2% in 2013 through May 31—and up in average annual total return by double digits in the last 10, 5, and 3 years. He is among Barron’s list of 25 top money managers in the last 25 years.

The 16 stocks that passed the Driehaus screening criteria are headed by NWY (New York & Company, Inc.)

My 5-year Yahoo price-performance chart shows a sideways (read whipsawing) path for NWY since the 2009 market low point for the stock market.

My 3-month chart shows an encouraging up trend since mid-April 2013. Momentum investors, take note.

Why Stocks Got a Jolt

In the New York Times the other day, William D. Cohan presented his explanation for the recent 500-point (3%) pullback in the Dow Jones Industrial Average.

He begins by reporting the words uttered by Fed chief Bernanke that apparently prompted the stock losses:

He said the economy looked as if it was slowly improving, that Fed officials saw signs that employment was picking up and that the inflation rate was hovering below the Fed’s target of 2 percent.

Sounds like good news, doesn’t it? Mr. Cohan agrees.

My Stock of the Day: BIZM

BIZM closed over the counter Friday at $3.18 a share. It’s the developer of a version of the hand-held Star Trek diagnostic device discussed today in my companion post.

My 20-day performance chart hints at an uptrend in the stock, barring any unexpected negative announcement about BIZM, Biozoom, Dr. Jansen, or the device.

Given nothing but good news, the stock’s potential for price appreciation appears to be enormous.

We'll see. Never forget: Every kind of savings and investment depends, like all of life, on the unknowable future. 

From StarTrek to You & Your Doctor

I was among those who, in 1966 (and since), marveled at the very notion of the handheld device (tricorder) that diagnosed illnesses and other health issues for Dr. McCoy on Star Trek.

Now I’m dazzled by the announcements that Peter Jansen, Ph.D., has invented such a device.

A small Southern California company, Biozoom (OTC QB: BIZM), has announced that it has developed a tricorder-type device, tested it successfully, and now seeks a partner to take it to market worldwide.

Beam me up, Scotty.

My Stock of the Day: QCOR

Through May 31, 2013, the AAII Rule #1 Investing Screen was up 23.3% in the year to date and double digits in the last 10, 5, and 3 years.

As of now, only five stocks meet its criteria. QCOR (Questcor Pharmaceuticals, Inc.) is in top place.

My 5-year Yahoo performance chart shows persistent recovery from to 2009 lows.

My 3-month chart shows a shaky up-trend pattern.

Yes, Rule #1 is attributed to Warren Buffett, who famously said there are only two worthy rules for investing: Don’t lose money and Don’t forget Rule #1.

Also, never forget this: All investments and savings are gambles on the unknowable future and thus subject to loss.

First, Check the Fundamentals

Ex-banker, author, and registered investment adviser Richard Loth presents (in small bites) everything you’d hope to know about identifying stocks worthy of further analysis.

He puts cash flow in first place. I think doing so is fine, though I put price momentum in first place, price/earnings in second place, price/book in third, and free cash flow in fourth.

Yes, I recommend both fundamental and technical evaluation.

I do recognize that Richard’s advice may be better than mine. Every investment approach involves guesswork about the unknowable future.

My Stock of the Day: WX

AAII’s Stock Market Winners stock-selection strategy now shows double-digit returns for 2013 to date (+24.1% through May 31) as well as for the last 10, 5, and 3 years.

Of late, only  four stocks have met this strategy’s criteria, led by WX (WuXi Pharma Tech (Cayman), Inc. 

AAII’S accompanying comment: The use of these rules or screening criteria produced returns significantly higher than the market.  While the group of stocks passing the filter were slightly more risky than the market, the additional risk did not account for the extraordinary returns of the winners.

I plan to buy this stock Monday.

Never forget: All investments and savings are gambles on the unknowable future and thus subject to loss.

Retiring on a Shoestring

At howmuchcaniaffordtospendinretirement.webs.com, you will find suggestions on how best to plan your finances for your retirement years.

The article and its companion spreadsheets, calculators, and other tools are by Ken Steiner, a retired fellow of the Society of Actuaries.

As a retired fee-only NAPFA financial advisor, I wish I’d had his information and systems in place long before I retired. Also:

See Yahoo’s collection of retirement websites. It includes the Money/U.S. News excellent retirement research, including Best Places to Retire for Under $50,000 Per Year as well as 10 Best Places for the Wealthiest Retirees.

My Stock of the Day: IGLD

Through May 31, 2013, the AAII stock-selection strategy price to free cash flow was up double digits for the year to date as well as the last 10, 5, and 3 years.

Just now the strategy’s leader is IGLD, followed by MFI, LEE, and just seven other stocks.

My 5-year Yahoo chart for IGLD shows a strong up trend for about two years, followed by a a deeper down trend, a false recovery, and then sideways movement till now.

Analyst Opinion at Yahoo rates IGLD (Internet Gold Golden Lines, Ltd., a strong buy.

The company is based in Tel Aviv, Israel. It provides communications services to that country’s many tech companies.

AAII screens 77 investment strategies and provides data on each, free to all. Stocks passing each of the 77 are named for AAII members ($29 yearly). 

AAII is my most-often-recommended website for do-it-yourself portfolio managers (and my favorite), followed by Value Line and Morningstar.

Outlook for Stocks Now: Bright

Today, Value Line reports on the best- and worst-performing industries of the past six weeks. First off, it foresees “strong results” for  GOOG (Google) in the balance of 2013—and “the long-term outlook appears bright as well.” And:

Value Line names Foreign Electronics/Entertainment as the leading industry for 2013 to date, followed by Internet and Auto Parts in second and third place. What's more:

This morning at The Street, today’s featured article carries this headline: Stock Futures point to a Wall Street Rebound.