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The Week Past
Well, we had the Dow up small last week by finishing +0.7% for the week, the Nasdaq finished the week +0.4%, The Russell 2000 was +2.2%, and the S & P 500 was +0.9%. All traders should pay closer attention to their mental stops or plan on riding out some bumps along the way.
This last week was a small upturn for the Dow and a medium upturn for the Nasdaq. We believe margin is fine to use if you DO NOT margin all your holdings. We feel it would be prudent to have 1/2 of an account on margin at this time.
We believe that a long-term or swing-trader should have 1/2 of their portfolio on margin at this time. A daytrader could have some margin of up to 3/4 of his holdings if you use tight stops. We want short-term traders to have their stops in a tighter range of –10% to -15% We suggest using -30% stops on your long-term positions at this time.
Well, the Dow was up small and the Nasdaq finished the week up small also.
LU and T still warrant being sold due to management issues. We still feel these two stocks should still be sold even though they both have moved up some in these last two weeks. LU has announced they will lay-off 10,000 workers.
The Economic reports coming this week are: on January 30th at 10:00 AM EST the Conference Board Consumer Confidence report will be released and at 9:00 AM EST the FED starts the FOMC meeting and it will last for two days; on January 31st at 8:30 AM EST the Gross Domestic Product (GDP) report will be released; at 2:15 PM EST The FED will make an announcement on interest rates; and at 10:00 AM EST the Philadelphia Fed Index and Chicago PMI reports will be released; and on February 2nd at 8:30 AM EST The Employment Report will be released. These reports will rate a B- to A+ on a scale of A-F. Everyone should place close attention to pre-market trading and how the futures are acting each morning before the market opens for trading.
IPOs by M_A_Trader©:
Ipos are now slowly starting to come out as the market goes higher. There will not be many ipos coming to the market so check on them at this web site. Click on Ipo Info is a great site to research ipos.WARNING: IF YOU BUY IPOs AFTER THE STOCK OPENS USE LIMIT ORDERS ONLY.
”A” Portfolio Stock Report by M_A_Trader©
Nortel (NT, TSE)(NT, NYSE) Nortel closed the week at $37.50. We now have a 12-month target on NT of $175 US. News for NT:
“ --(BUSINESS WIRE)--
The press conference will be fed live via satellite on: Transponder SBS615 Band: Ku Orbital Position: 74 degrees Carrier: Panamsat Bandwidth: 43 MHz Uplink Freq: 14372.0 MHz (V) Downlink Freq: 12072 MHz (H)
To participate in audio teleconference, please call 18883353995 (North America ONLY) 16137659007 (International) Please dial in at least 15 minutes prior to the start of the event. Archived Files: A replay of the audioconference will be available at 12:00 pm EST at 9058635885, passcode 17762182# until 5pm on February 6, 2001. Note to Editors: the passcode for the conference call replay is followed by a pound sign: 17762182 pound sign.”We have a target on NT of $175 over the next 12 months. NT
These stocks in our “A” Portfolio MYGN; MLNM; and EXDS all had double digit increases with CORV; SCMR; and ORCL having double digit decreases with the rest of the “A” Portfolio not changing much. . The upper resistance levels for the Nasdaq is 2,900 and then 3,000. Support is at 2,790 and then 2,645. We would like to see the Nasdaq stay above 2,750.
The “A” Portfolio is going to a strict percentage gain or loss sell mode for now with the market fluctuating so much at this time. If a position moves up +20% one-quarter of the position will be sold, at +40% another one-quarter will be sold, and then at +75 to +100% another one-quarter of the position will be sold. That will leave one-quarter of the position to ride the stock higher. We still will use –30% to exit a stock position. Our targets for these stocks are on our Charts page.
We will talk about more of the stocks in the “A” Portfolio in the coming weeks.
All the past additions to the “A” Portfolio are on this page now.”A” Portfolio Additions
Please read our disclaimer about the “A” Portfolio here. ”A” Portfolio Disclaimer
Stock Charts for 2000 and 2001
This page has links to all our stock charts and “A” Portfolio results for 2001.The Charts
After we turn from overall market downward momentum to upward momentum these three Canadian companies should rebound well.
Infowave Wireless (IW:TORONTO) Target US$30 Infowave is well positioned to take advantage of the coming boom in wireless email. Thomas Koll(a current VP at Microsoft) will be starting as the companies CEO on February 15. They have many impressive partners including Intel, Nokia and Compaq. Current market conditions have made this stock very oversold.
Rogers Communications (RCB.A:TORONTO) Target US$42 Rogers is Canada's largest cable television company they also have their hands into providing high speed internet as well as cellular and paging services. The long-term outlook for this company is stable and is likely to see steady growth in a booming industry.
Nortel Networks (NT:TORONTO, NT NASDAQ) Target US$175 Many Canadian brokers are raving about the buying opportunity available due to Nortels current price weakness.
LEAPS® information is now on this page. LEAPS®
Stocks We Like
Research in Motion closed the week at $71.56 we have raised our 12 month target to $255 (RIM, TSE) (RIMM, NASDAQ). News for RIMM: No new news for RIMM. We are letting RIMM run for our target of $255. Use a trailing stop so you do not get stopped out of RIMM to early if you have some large gains from its lows earlier in the year. We would like to add RIMM to the “A” Portfolio if it goes below $50 but this is a very risky long-term play on wireless communications. Since we already have PALM a trader may want to add HAND and have all three in their portfolio.You may have to hold RIMM for 12 – 18 months depending on how the market is doing. RIMM has found partners in AOL and Compaq. Amazon has Crackberry available for $499 with service available at $39.95 per month. RIMM
VIRS (7.00 ) is a very speculative buy at this time. VIRS was –12.50% this last week. VIRS is a strong buy if it sinks down to $5 1/2 – 6 1/2 Only buy it if you can afford to lose all you invest in it. The chart for VIRS is looking good so continue to hold this stock for our $25 target. News from VIRS: No new news from VIRS this week.
Triangle Pharmaceuticals, Inc. is a specialty pharmaceutical company engaged in the development of new antiviral drug candidates, with a particular focus on therapies for the human immunodeficiency virus (HIV), including the acquired immunodeficiency syndrome (AIDS), the hepatitis B virus (HBV) and hepatitis C virus (HCV). Triangle's proprietary drug candidates under development for HIV and/or HBV include Coviracil(R) (emtricitabine), Coactinon(R) (emivirine), DAPD, L-FMAU (clevudine) and DMP-450. Triangle is also developing immunotherapies for HIV, HBV and HCV in collaboration with Dynavax Technologies Corporation (Dynavax) utilizing Dynavax' immunostimulatory sequence (ISS) technology.”
Management and product development strategy is available on Triangle's website at: VIRS
We are adding another blown up stock as a speculative buy. We are adding ZOOX (4.72), +33.71% for the week, as a very risky buy at $3 ½ to 4 1/2 with a target of $29 in 12-24 months. ZOOX is currently having a slow down in sales year to year. Its new switch for SANS are not selling as well as management expected. New management has been installed but it may take two or more quarters to fix their inventory oversupply. Well, ZOOX has not been doing very good since we recommended it a few months ago. We would average into more of ZOOX and hold for the long-term. ZOOX may be dead money for the next two-three quarters. News for ZOOX this week: No new news for ZOOX this week. Only buy this stock if you can afford to lose your entire investment in ZOOX.ZOOX
Over the next few weeks we will talk about the stocks in our “A” Portfolio. We started off with IMNX last week. IMNX reported earnings on January 24, 2001 and go to their website to read about their report ($32.12) IMNX News for IMNX this week: No new news for IMNX this week.
This week we are talking about Corvis Corporation CORV (20.50): “ SAN FRANCISCO, Jan. 26 /PRNewswire/ -- Epoch Partners today issued a Research Note on Corvis Corporation. The Research Note, issued today by Seth Spalding, Senior Analyst, Communications Equipment with Epoch Partners, discusses Corvis (Nasdaq: CORV) in light of its quarterly results announced on January 25, 2001. The following are key highlights included in the Research Note: Corvis -- The Doctor Delivers: -- Corvis reported Q4 revenue of $46.0 million vaulting over our estimate of $30.9 million, representing sequential growth of 100.7%. -- Despite a macro deceleration in optical network build-outs, Corvis management's visibility into the coming year is strong due a $580 million contractual backlog from Broadwing, Williams, and Qwest -- all pre-IPO equity holders. -- Even considering our increased revenue estimates, we believe the stock is fully valued relative to peers.”
With the Market being so volatile, a trader should have some close mental stops in the stocks they buy. We suggest a mental stop of 20% is used where appropriate.
Our 1999 BUYS and their targets are located on this page Stock Picks 1999
Income and Bonds
We recommend buying utilities based in Florida and not any utilities based in California. The reason is California based utilities do not produce enough of their own power and have to go onto the open market to buy power during peak usage. California utilities are having trouble and two of them Edison Intl. (EIX) and P G & E Corp. (PCG) are having problems so stay away from them for now. The authorities in California granted EIX and PCG some rate increases for the next 90 days but it may not help those two utilities enough in their cash flow and they still may end up in bankruptcy. Well, EIX has said this morning Tuesday January 16th that they will stop paying all their suppliers. We would stay away from any power generators that supply power to any California utilities at this time. For a person needing some income be sure to look into electric utilities for some bargain buying opportunities to take advantage of the high dividend paying utilities. We would buy 10-year treasuries for income and some appreciation if interest rates were lowered more this year. We recommend 3-6 months Treasuries because they are currently yielding 5.0%. CEI yield has gone down to 9.7% but it is still a buy for its yield and our target is $32.
Stocks for 2001
The new stocks we have added to our charts for 2001 are: INSP; IMNX; ICOS; TQNT; TGEN; SBUX; RSTA; CRXA; COST; WM; ISLD; MCOM; CHKP; EMLX; ITWO; MANU; JNPR; MUSE; VRTS; QLGC; VRTY; ACRT; AREM; CHCS; INRS; PWER; PDII; SNWL; CHEZ; KO; CORV; GPS; GSPN; MDT; MRCY; AMCC; VTSS; XLNX; BKE; MYGN; CHIR; APC; DVN; JNY; MCLD; NBR; PTEN; QQQ; and TXN. We dropped the following stocks: T; EWEB; ROWE; SGAI; PCOR; PCNTF; ICY; AND LU. You will notice there we be more sections in the charts section of the website. We still will have sections called 12 month, Like, and Tracking. With new sections for Beaten up stocks from 2000, an ADV section for stocks new to our Newsletter, and a section called Dogs of the Dow. Dogs of the Dow are five stocks chosen from the Dow Jones Average of 30 stocks that has shown to beat the market over the past few years.
Some the company’s reports written about Stocks 2001 in the newsletter are here Stock Picks 2001
With the Market being so volatile, a trader should have some close mental stops in the stocks they buy. We suggest a mental stop of 30% is used where appropriate.
We have moved our BUYS for 1999 to here 1999 Stock Picks
Readers will notice all our stocks we follow are on a separate page and we will list prices to purchase stocks at and a target price that we feel the stocks have of reaching in 12 months.
The Shopping Page
The Shopping Page #2