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The Week Past
Well, we had the Dow up down last week by finishing -1.2% for the week, the Nasdaq finished the week -3.8%, The S & P 500 was -1.7%, and the Russell 2000 was +?%. 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 downturn for the Dow and a medium downturn 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 1/3 of their portfolio on margin at this time. A daytrader could have some margin of up to 1/2 of his holdings if you use tight stops. We want short-term traders to have their stops in a tighter range of –5% to -10% We suggest using -20% stops on your long-term positions at this time.
Well, the Dow was down small and the Nasdaq finished the week down large.
Last Weeks Economic News
The Economic reports coming this week are: The reports are: on May 10th at 8:30 AM EST the International Trade report will be released and at 8:30 AM EST the Initial Claims report on joblessness will be released; and on May 11th at 8:30 AM EST the Producer Price Index (PPI) report will be released and at 8:30 AM EST the Retail Sales report will be released.
This Weeks Economic News
The reports are: on May 14th at 8:30 AM EST the Business Inventories report will be released and at 9:15 AM EST the Industrial Production report will be released; on May 15th at 2:15 PM EST The FED will release their report on interest rates and what they will be lowering interest rates too; on May 16th at 8:30 AM EST the Housing Starts and Building Permits reports will be released and at 8:30 AM EST the Consumer Price Index (CPI) report will be released; on May 17th at 8:30 AM EST the Initial Claims report on joblessness will be released; and on May 18th at 8:30 AM EST the International Trade report will be released. These reports will rate a C+ 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 not coming out now as the market goes lower. There will not be many ipos coming to the market so check them out on 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.
We have heard FRONTIER OIL CORPORATION (NYSE: FTO) may become a takeover candidate at $15-16. This stock would be a very speculative play in the energy sector. Buy under $9 with a mental stop at $6 ½. Well, FTO is at $12.45 on May 15th so we would recommend a trader sell ¼ of their holdings and take some profits off the table if they bought below $9. Hold the rest for our $16 target and move the stop up to $11.75. Only use money you can afford to lose all of it in this type of trade.
The FED fund futures is now saying the FED will cut rates on May 15th by 50 basis points. The FED last lowered rates 50 basis points on Wednesday April 18th, 2001.
”A” Portfolio Stock Report by M_A_Trader©
We are looking at adding the following stocks to the “A” Portfolio: ISIL at $30 or less; RETK at $30 ¾ or less; CTLM at $31 ¼ or less; and MDT at $44 or less. We will report on these stocks in our next newsletter.
We added MDT at $43.86; ISIL at $29.75; RETK at $29.75; and CTLM at $30.75 to our “A” Portfolio in the last week.
Here is some information on the above four stocks.
MDT: Medtronic, Inc. is a medical technology company engaged in manufacturing and selling device-based medical therapies. The Company's product lines include cardiac rhythm management, neurological, and spinal, vascular and cardiac surgery. For the 9 months ended 1/26/01, net sales rose 13% to $4.03B. Net income rose 17% to $896M. Results reflect increased sales of neurological and vascular products and increased net interest income. MDT
CTLM: Centillium Communications designs, develops and markets products that enable broadband communications to the home and business, and currently sells Digital Subscriber Line (DSL) products. For the 3 months ended 3/31/01, total revenues totaled $31.9M, up from $4.7M. Net loss rose 34% to $13.5M. Results reflect continued penetration in the Asian markets, offset by increased personnel and in-process R&D expenses. CTLM
ISIL: ISIL is a systems oriented designer and manufacturer of analog and digital integrated circuits and discrete semiconductors for the communications and power management end-user markets. For the comparable 13 weeks ended 3/01, revenues rose 9% to $127.8M. Net income applic. to Common & before extra. item totalled $50.6M, up from $1.3M. Results reflect market penetration of PRISM(R) products & the inclusion of a $168.4M gain on sale of Discrete Power Group. ISIL
RETK: etek Inc. provides web-based, business-to-business software solutions for retailers & their trading partners, enabling retailers to use the Internet to communicate and collaborate with their suppliers, distributors, logistics providers and others. For the 3 months ended 3/31/01, total revenue totaled $37M, up from $14M. Net loss fell 40% to $6.8M. Results reflect the addition of new retail customers, partially offset by higher personnel expenses. RETK
We have added AXP at $37.50; FRE at $60.50; and XLF at $25.50 to the “A” Portfolio the last few weeks . All three stocks are in the financial sector. Here is some information on all three companies.
AXP American Express ($42.41). News for AXP: No new news for AXP. AXP
FRE ($63.38) News for FRE: No new news for FRE. FRE
Financial Sel Sect Spdr Fd (AMEX: XLF $27.91) is a sector spider traded on the AMEX.
The upper resistance levels for the Nasdaq is 2,200 and then 2,575. Support is at 2,100 and then 2,000. We would like to see the Nasdaq stay above 2,000. The Dow has support at 10,600 and then 10,400. Resistance is at 11,000.
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
The Charts page will be up and running by the end of May 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 two 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.
LEAPS® information is now on this page. LEAPS®
Stocks We Like
Research in Motion closed the week at $28.01 we have lowered our 12 month target to $155 (RIM, TSE) (RIMM, NASDAQ). News for RIMM: No new news for RIMM. We are letting RIMM run for our target of $155. Since we already have PALM a trader may want to add HAND and have all three in their portfolio.We added RIMM at $40 ¼ and today March 28th we added more RIMM at $20.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. News for RIMM: No new news for RIMM. RIMM
VIRS (5.05 ) is a very speculative buy at this time. 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 for VIRS now.
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 (2.37), as a very risky buy at $2 ½ or lower with a target of $29 in 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: “SAN JOSE, Calif. and MISSISSAUGA, Ontario, May 14 /PRNewswire/ -- Gadzoox Networks, Inc. (Nasdaq: ZOOX), a supplier of intelligent storage networking products, and SKYDATA Corporation, a leading Canadian vendor of mass storage products, today announced a key partnership that will expand Gadzoox Network's presence in the rapidly growing Storage Area Network (SAN) market in Canada. SKYDATA will incorporate Gadzoox Networks' Capellix Fibre Channel SAN switch products into their RAIDSTAR FC family of modular, scalable Redundant Array of Independent Disks (RAID) arrays. This partnership enables both companies to penetrate further into Canada's market for high-bandwidth and high-availability storage solutions. "Our partnership leverages the technical and innovative leadership of both companies to create high-availability storage solutions for back-up and clustering applications," said Ron Von Trapp, vice president of worldwide sales for Gadzoox Networks. "The Canadian market for storage networks is growing and the combination of Gadzoox Networks Capellix switches and SKYDATA's RAID arrays offer an advanced storage solution to this important market." Gadzoox Networks' Capellix 3000HA Fibre Channel switch provides the SAN switching capabilities to the RAIDSTAR FC solution. The 3000HA, the high-availability model in Gadzoox Networks' popular Capellix 3000 line of modular SAN switches, enables a robust, end-to-end SAN solution with unmatched flexibility, scalability and ease-of-use. The Capellix 3000HA utilizes a rack-mountable chassis and hot-swappable, redundant power supplies and fan assemblies to ensure no downtime for mission-critical SAN applications. The RAIDSTAR FC is a family of modular and scalable RAID arrays supporting a broad range of RAID levels, 10,000 RPM disk drives and the power of Fibre Channel. The RAIDSTAR FC features high performance and data availability, with up to four Fibre Channel host/SAN port connections yielding up to 360MB/sec cumulative bandwidth. "We're partnering with Gadzoox Networks because they offer Fibre Channel switch solutions that enable us to offer an advanced RAID array solution that meets all of our customers requirements for reliability, scalability and availability," said Howard Goldberg, president and chief executive officer at SKYDATA Corporation. "The Capellix 3000HA and RAIDSTAR FC provide the functionality and ease of use our customers demand, at a cost effective price.” 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 added more IMNX ($14.95) to our “A” Portfolio because they still will sell all the Enbrel they can produce and have a waiting list for Enbrel. IMNX News for IMNX this week: “FREMONT, Calif. and SEATTLE, May 14 /PRNewswire/ -- Researchers presented preliminary results from a Phase 1 clinical trial of ABX-EGF, the only fully human monoclonal antibody in development against the epidermal growth factor receptor (EGFr), a receptor identified in many solid tumor types. Co-developed by Abgenix, Inc. (Nasdaq: ABGX) and Immunex Corporation (Nasdaq: IMNX), ABX-EGF was studied as monotherapy (without concomitant chemotherapy) in patients with various types of cancer. Data were presented today at the 37th Annual Meeting of the American Society of Clinical Oncology (ASCO). Data from the ongoing, multiple-dose Phase 1 study of ABX-EGF included the results from 28 patients with various types of advanced solid refractory tumors, including kidney, prostate, pancreatic, non-small cell lung, colorectal and esophageal cancer. Patients received ABX-EGF by intravenous infusion every week for four weeks and were followed for safety for an additional five weeks. Doses ranged from 0.01 mg/kg to 1.0 mg/kg of ABX-EGF preceded by a loading dose. The primary objective of this Phase 1 study is to evaluate the safety of ABX-EGF at multiple dose levels. "ABX-EGF's role in targeting the EGF receptor and blocking the growth of tumor cells make it an exciting and promising research candidate in the treatment of cancer," said Robert Figlin, M.D., a researcher at UCLA's Jonsson Cancer Center and a professor of medicine and urology at the UCLA School of Medicine. "I am encouraged by plans to investigate its potential as a single-agent against multiple tumor types." The following data were presented at the ASCO meeting: -- Multiple doses of ABX-EGF appear to be well tolerated at doses ranging up to 0.75 mg/kg with a loading dose of 1.0 mg/kg. -- No antibody formation to the molecule was detected in any patient receiving ABX-EGF. -- No allergic reactions or infusion-related reactions were observed in any patient receiving ABX-EGF. -- Pharmacokinetic observations indicated that serum levels of ABX-EGF associated with efficacy in mouse xenograft models were attained in patients at a dose of 1.0 mg/kg. -- Skin rashes characteristic of EGF receptor targeting agents were observed at a dose of 1.0 mg/kg of ABX-EGF when preceded by a 2.0 mg/kg loading dose. -- Stable disease has been achieved in two patients who received low doses (0.1 and 0.75 mg/kg) of ABX-EGF as monotherapy. Based on the preliminary results of the Phase 1 study, Abgenix and Immunex initiated a Phase 2 study of ABX-EGF in kidney cancer. The companies plan to initiate a series of Phase 2 clinical trials in additional cancer indications.”
Corvis Corporation CORV ($7.06) News for CORV: “COLUMBIA, Md.--(BUSINESS WIRE)--May 14, 2001--Citing the need to streamline its cost structure in light of current business conditions, Corvis Corporation (NASDAQ: CORV) today announced a program to reduce its U.S. operations by approximately 250 positions. Under the program, a comprehensive severance package will be provided to employees who elect to leave the Company voluntarily. Corvis will also establish an on-site recruiting assistance center to assist departing employees in finding new employment. "The reduction in work force announced today, though necessary for the Company's long-term health, is nonetheless painful for those of us who have worked so long and so closely together in building Corvis into what it is today," said Dr. David Huber, founder and chief executive officer. "We are forced by circumstances to part with talented, dedicated workers, and we will make extraordinary efforts to ensure that no one leaves Corvis without adequate help in securing employment elsewhere." This workforce reduction is part of the Company's overall effort to implement streamlining initiatives and reduce operating expenses, which were discussed on the first fiscal quarter 2001 earnings conference call in April.” CORV
Sycamore Networks (SCMR) ($9.39) News for SCMR: “HELMSFORD, Mass.--(BUSINESS WIRE)--May 8, 2001-- SN 3000 now combines the highest connection density with the widest service range of any intelligent optical access switch on the market today Sycamore Networks (NASDAQ: SCMR), a leader in intelligent optical networking, today introduced an expanded feature set for the SN 3000 Optical Access Switch, enabling service providers to immediately improve operational efficiencies of their metro networks, as well as expand the services they can offer from the edge of the public network. New features include a 4 x OC-48/STM-16 service module, enhanced restoration and protection options that offer rapid, end-to-end restoration for ring and mesh networks, and the general availability of a 1 x OC-192/STM-64 service module. "With our selection of Sycamore's SN 3000, we will be able to extend the benefits of the optical mesh from the core to the edge of the optical network," said Stephen Baker, chief technology officer of 360networks, "This intelligent optical access switch will allow us to enhance the end-to-end delivery of high-speed, customized services such as fixed point-to-point, optical virtual private networks and rate adaptive Gigabit Ethernet." Unlike other optical access switches that provide carriers with only one or two OC-48/STM-16 connections into the core network, the SN 3000 now allows service providers to create more efficient metro architectures and easily integrate ring-based architectures into a mesh core. Offering three times the connection density of any other product in its class, the SN 3000 is capable of supporting up to 14 OC-48/STM-16 connections in a single 19-inch chassis, enabling service providers to provide the complete range of OC-n/STM-n and rate adaptive Gigabit Ethernet services in a small footprint. "Today's metro service providers are looking for technologies that can reduce the cost of delivering dynamic optical services that combine the inherent benefits of SONET/SDH with the flexibility and scalability of optical switching," says Jim Mooney, vice president of product marketing for Sycamore's Optical Edge Business Unit. "Sycamore's SN 3000 Optical Access Switch can dramatically reduce the amount of time and resources required to deploy optical services in the metro, allowing service providers to realize faster returns on their investments than ever before.” SCMR
Ceragon Networks Ltd. (CRNT $2.95) News for CRNT: No new news for CRNT. CRNT
Capstone Turbine Corp. CPST ($30.12) News for CPST: No new news for CPST. CPST
CORR ($31.08) News from CORR: No new news for CORR. CORR
Three recent additions to the “A” Portfolio are being reported on.
EMBT ($26.68): News for EMBT: No new news for EMBT> EMBT
PALM ($7.10) News for PALM: “SANTA CLARA, Calif., May 9 /PRNewswire/ -- Palm, Inc., a leading provider of handheld computers, today announced details of its presence at the Cannes Film Festival, which takes place May 9 to 20. Palm will showcase new products and solutions at its booth in the Cannes Market (Booth 17.02) and will also provide an exclusive software CD and a unique application developed specifically for Cannes Market attendees and festival-goers. Private product demonstrations will be offered for press and entertainment industry VIPs. Palm will preview its newest range of handhelds, the Palm(TM) m500 series, which features a Secure Digital (SD) and MultiMediaCard expansion slot to add extra memory for data backup applications and rich content, such as pictures or videos, making the m500 series ideal for the entertainment industry. Satjiv Chahil, chief marketing officer, Palm, Inc., said, "The worlds of technology and film are converging. The film industry has continually embraced and enhanced new technologies, from the advent of sound and color, to video and DVD. Palm is now taking the Palm platform and the entertainment industry to the next level with the latest wireless and media technologies. With the new SD and MultiMediaCard expansion slot on the m500 series -- about the size of a postage stamp -- we're laying the foundation for the day when the latest Cannes film hit could be available on an SD card, ready to watch on your Palm handheld." Palm also has made special provisions to sell a number of its cutting-edge handheld computers and accessories at the Palm booth. Models for sale will include the Palm m105 handheld with fashionable, colorful faceplates and the sleek, stylish Palm Vx handheld. Palm handheld accessories on sale include the Palm Portable Keyboard and PalmConnect USB Kit. Palm Vx handheld buyers also will receive a Palm Mobile Internet Kit (European version) at no extra charge.” PALM
CMRC ($7.46): News for CMRC: No new news for CMRC. CMRC
New stocks for this newsletter are: HAND, CHIR, and MLNM.
HAND ($10.31) Handspring, Inc. News for HAND: “MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 15, 2001-- Wireless application suite brings improved wireless data capabilities to VisorPhone customers including fast web access, e-mail and messaging reduced price brings great value to breakthrough phone module Handspring, Inc. (Nasdaq:HAND) today announced the introduction of its new Wireless Internet Access Suite, a suite of browsing, messaging and e-mail applications that will be shipped with the VisorPhone Springboard module. Originally introduced in September 2000, VisorPhone brings a greater voice communications experience to Visor handheld users. With the introduction of this CD, VisorPhone is now optimized for data communications including e-mail, instant messaging, and Web browsing. The CD includes Handspring's new Blazer web browser, Yahoo Messenger, JP Mobile One-Touch Mail(TM) and Electric Pocket's BugMe Messenger. Available from select retail partners and online at Handspring.com, VisorPhone is now selling for the new price of 249 when purchased with a service plan or 449 when purchased separately. Operating on GSM (Global Systems for Mobile Communications) networks, VisorPhone is a 900/1900 MHz world phone that can be used internationally with appropriate roaming service from the respective carriers. The Wireless Internet Access Suite features the Blazer web browser, announced separately today, which is based on the Palm OS and features content powered by Microsoft's MSN Mobile and search capabilities provided by Google. When used with a phone or modem module, Blazer brings true plug-and-play Internet access to the Visor product family. Blazer also runs on any other wirelessly enabled Palm OS handheld. Blazer supports all major existing standards, optimizing HTML, WAP and cHTML content for viewing on a handheld display. VisorPhone is currently available nationally from Handspring.com. In addition, customers can purchase VisorPhone at participating retail stores throughout select geographic regions covered by Cingular Wireless. Competitive service plans are available from Cingular Wireless, Powertel, Inc. and VoiceStream Wireless. Handspring is aggressively working to offer VisorPhone in additional North American retail stores and carrier stores nationwide over the next several months.” HAND
CHIR ($46.81) Chiron Corp. is a biotechnology company that is developing products for preventing and treating cancer, infectious diseases and cardiovascular disease. News for CHIR: “EMERYVILLE, Calif., May 14 /PRNewswire/ -- In conjunction with Chiron Corporation's (Nasdaq: CHIR) Annual Meeting of Stockholders, you are invited to listen to a live broadcast over the Internet on Thursday, May 17, 2001 at 1:00 PM EDT. What: Chiron Corporation Annual Meeting of Stockholders When: 1:00 PM EDT on Thursday, May 17, 2001 Where: http://www.chiron.com How: Live over the Internet -- Simply log on to the web at the address above. Please allow 15 minutes to download any necessary software. Contact: Jennifer Wyckoff, Associate Manager, Corporate Communications and Investor Relations Tel: 510-923-3103 If you are unable to participate during the live webcast, the call will be archived on the web site until Monday, May 21 at 1:00 PM PDT. To access the replay, please visit the company's web site at http://www.chiron.com” CHIR
MLNM ($33.45) News for MLNM: “LONDON, May 10 /PRNewswire/ -- BTG (London: BGC), the global technology commercialization company, announced today that the US Food & Drug Administration (FDA) has granted accelerated approval of Campath(R) (alemtuzumab) humanized monoclonal antibody for use as a treatment for patients with B-cell chronic lymphocytic leukemia (CLL) who have been treated with alkylating agents and have failed fludarabine therapy. CLL is the most prevalent form of adult leukemia, affecting approximately 120,000 patients in the US and Europe. Together with the European Medicines Evaluation Agency's (EMEA) Committee on Proprietary Medicinal Products (CPMP) opinion last month, it is anticipated that Campath will be launched in the US and Europe this year, with product being available in the U.S. in early June and later in the year in Europe. Campath has been licensed by BTG to Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM), and was developed by M&I Partners, a 50-50 joint venture of Millennium and ILEX Oncology, Inc. (Nasdaq: ILXO). Campath will be marketed and distributed in the US by Berlex Laboratories, a subsidiary of Schering AG, Germany. Under the terms of the licensing arrangement, BTG will receive royalties based on product sales. With this accelerated approval, Campath will become the first monoclonal antibody to be approved for the treatment of CLL and the first new drug indicated for the treatment of CLL in nearly ten years. "Accelerated approval" requires that M&I Partners conducts a confirmatory study of Campath versus chlorambucil, the standard frontline treatment, to further examine Campath's safety and efficacy in CLL patients. This post-approval trial is planned to begin later this year.” MLNM
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.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. PCG has declared bankruptcy last week and Edison Intl. (EIX) has said they will not declare bankruptcy for now. 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 5-year and 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 4.0%. CEI yield has gone down to 9.8% but it is still a buy for its yield and our target is $35. We also like these two reits: CRE yielding 6.5% CarrAmerica Realty is a REIT that focuses primarily on the acquisition, development, ownership and operation of office properties in suburban growth markets in the U.S. Forthe FY ended 12/31/00, revenues rose 8% to $558M. Net income from continuing operation fell 3% to $147.2M. Revenues reflect the development of properties being placed in service and higher occupany rate for store properties. Earnings were offset by a lower gain on the sale of assets. CRE and SPG yielding 7.81% Simon Property Group, Inc. is a self-administered and self-managed REIT company, primarily engaged in the expansion & development of real estate properties, primarily malls and shopping centers. For the fiscal year ended 12/31/00, revenues rose 7% to $2.02B. Net income before extra item & acct. change, applic. to Common and limited partners rose 14% to $347.4M. Revenues reflect the CPI merger. Net income reflects gains vs. losses on RE sales. SPG
We have another energy stock we like that has some risk but not as much risk as some of the other energy stocks out in the market. The stock is Entergy (ETR). We added ETR ($42.45) to the “A” Portfolio at $38.50 on April 16th, 2001. News on ETR: “JACKSON, Miss., May 11 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) has made outstanding progress since its restructuring three years ago, Entergy Chief Executive Officer Wayne Leonard told shareholders at the company's annual meeting today, and is well positioned for long-term sustainable growth. Leonard cited several goals and sources of future earnings growth for Entergy: -- New generating capacity -- including new plants and enhancements to existing nuclear and fossil-fired plants -- to serve growing demand from Entergy's utility customers; -- Productivity gains and reliability improvements in the competitive nuclear generation business, as Entergy's proven nuclear "turnaround" and operating skills are applied to newly acquired plants; -- Development of new products and customer relationships in the U.S. and expansion into the European trading markets through Axia Energy, the competitive energy trading business of the Entergy-Koch joint venture; -- Increased throughput and additions to the Gulf South Pipeline, part of Entergy-Koch, to serve expanding gas production in the Gulf of Mexico and new gas-fired generation in the region; and -- New wholesale generating plants, using turbines supplied under a contract with General Electric and proprietary plans developed by the EntergyShaw joint venture. Review of Progress At today's shareholder meeting, Leonard reviewed Entergy's progress since the Board of Directors restructured the company and a new management team took the helm three years ago. Leonard noted progress in the following areas since 1998: -- Substantial improvements in safety, reliability, and customer service, reflected in fewer lost time accidents, outages, and customer complaints; -- Formation of alliances with Koch Industries, The Shaw Group, and other premier partners; -- Significant reductions in the financial, regulatory, and market risks that faced the company three years ago; -- Establishment of a track record of consistent financial success. On an operational basis, Entergy earnings in 2000 were up 35 percent over the 1999 total, resulting primarily from the company's non-utility, competitive businesses, including new business ventures that became operational in the past year. In addition, Entergy earnings have beaten the consensus estimate of Wall Street analysts in each of the 12 quarters since the restructuring, and Entergy stock has outperformed both the Standard & Poor's 500 and the utility peer group over the period. Leonard told shareholders, "In 1998 we said we intended to grow earnings 8-10 percent per year, in an industry where 4-5 percent is big news. We've not only achieved that goal, but we're on track to achieve 15-16 percent growth per year for the five-year period from 1998 through 2002. We stand by our 8-10 percent commitment going forward, but at the same time, we aspire to deliver much more. Our aspiration is to double earnings every four to five years, and our management team is actively identifying ways to make this aspiration a reality." After launching its refocused strategy in 1998, Entergy divested more than 4 billion of non-core and underperforming businesses and reduced its debt. "Three years later, after investing 1 billion in improving customer service and 800 million in our own stock, and buying four nuclear plants, more than 30 turbines, a 9,000-mile pipeline, and 60 billion cubic feet of gas storage, we still have one of the strongest balance sheets in the industry," Leonard said. In his address to shareholders, Leonard highlighted Entergy's leadership as the nation's second-largest nuclear generator. One of the first companies to recognize the renewed value and importance of nuclear energy, Entergy led the industry in acquiring nuclear power plants in the past two years, adding 3,500 megawatts to its nuclear capacity at reasonable prices. Leonard pointed to further opportunities to acquire and/or operate nuclear plants, noting that nuclear generation has substantially changed in value with the rise in natural gas prices. "Nuclear is not just the cleanest but also the cheapest source of electricity," Leonard said.” ETR
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.
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.