Thursday, January 17, 2008

Stocks for January 21, 2008

Another difficult week for the markets. Here's the weekly list.


SymbolBB Zacks PEG SuppDem VLIBD Stock checkup
ESRX111 1A+
LIFC112 1A+
FLS111 1A
NOV111 1A-
AMTD111 A+
BIDU112 A+
CF1 11 A+
DE1 1 1A+
MATK111 A+
MOS1 1 1A+
ORCL1 1 1A+
POT1 1 1A+
SWN1 2 1A+
TNE111 A+
VIP111 A+
AAPL1 2 1A
ACO1 1 1A
AG1 1 1A
CLB1 1 1A
GOOG1 1 1A
JASO111 A-
NDAQ1 1 1A-
NE1 1 1A-
NOK 11 1A-


Martek Biosciences is new to the core list. It sells novel products from microalgae, fungi, and other microbes (yum!). It sells a vegetarian source of the omega-3 fatty acid DHA for use as a vitamin supplement.

Core list (with n of 10 weeks passing):

SymbolPassing weeks Earnings
AAPL10
ESRX10
GOOG10
LIFC10
MOS10
NDAQ10
NOK10
NOV10
VIP10
FLS10
ISRG9
PCLN9
PCP9
ACO9
BOOM8
CLB8
CNH7
GME7
RIMM7
SPWR7
AMZN7Earn 30-Jan
OTEX7
VMI7
AG7
DE7Div 31-Jan
JASO7Split 8-Feb
BGC6
PSEM6
SLB6
FTI6
CF6
KCI5
LOGI5Earn 17-Jan
SXE5
SYNA5
MATK5


The IBD is agreeing with me that the markets are in a correction. Most of the major indices are below their 200-day Simple Moving Average. While I believe the stocks on the core list to be among the best from which you can choose, their price movement is largely influenced by the movement of the market, which is dismal.

The market is waiting with bated breath to see not if, but by how much Fed chair Bernanke will cut rates. As I write, he is testifying before Congress, and the news is not good. He is urging Congress to pass a stimulus package, and quickly. (It reminds me of the medical shows when they keep on zapping the patient with a flat ECG. After the third or fourth try, one of the doctors has to "call it," that is, declare the time of death.)

In 2002, before he was nominated to the august position, he had given a speech about deflation in Japan, and how to prevent it from happening here. He also came up with a colorful analogy: If a helicopter came and dropped on each person the cash they already owned, doubling the number of dollars they had in their possession, then all prices would double the next day.

I remain skeptical that anyone would be able to reverse fiscal and monetary excess, especially the central bank that caused the latter. I will try to post a list of short candidates soon.

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