KIK/NSOM challenge and more...
Note: these are just quick writings so that I’m eligible for KIK’s money - he, he.
LWAY: go to LWAY board where I am the primary poster. Company is undergoing strong revenue and profit growth. Large insider ownership with good management - low float. Unique, healthy product that is nutritious and delicious and good for America. Nasdaq company and highly rated by IBD with share price recently increasing above 15 has made it to IBD’s main list and I believe it has picked up significant institutional sponsorship which will provide support for years to come. Only 2 analyst currently follow but expect that to change with all of the IBD exposure that has occurred lately. Outlook is extremely positive with raw milk prices expected to decline in 2008, companies recent food distribution agreement, and opening of Starfruit ship in Chicago. It’s my favorite stock and truly has the potential to be the next HANS - and I ain‘t even covered half of it - OY!
SOYO (rock and royo): 2nd favorite stock - again go to SOYO board where I post ad nauseum. Undergoing rapid revenue growth and soon to be followed by similar earnings growth IMO. In red hot LCD TV sector - and computer monitors ain’t too shabby either. Company is well managed, has large insider ownership and float is 23 mil. Honeywell, Honeywell, Honeywell - they have a killer deal with Honeywell to establish a line of Honeywell consumer electronics with first product to be released shortly and Honeywell computer monitors to come shortly after - and then the big LCD TVs in 2008 (I believe the Honeywell-SOYO LCD TVs will make national news and will simply be the best TVs in the world - period - that says it all IMO). So much more - but will end with company is forecasting EPS of .07 - .08 in 2007, this should solidify them as the real deal and their plans to get on the AMEX will be realized.
DFNS: Have followed them for years and been in and out. Their most recent quarter was their best ever IMO. Great share structure, strong balance sheet and is generally a well run company. Their revenue growth is kicking in and they are becoming a fairly good size company. EPS going forward should continue to increase and will likely be double digit in 2008.
Other 3 stocks am less excited about and others have written up on - they are ZYNX, AYSI, SGZI. ZYNX has clear signs of strong growth and all other factors appear reasonable. AYSI and SGZI both had good quarters. AYSI showing signs of good growth - but revenue is a little low - so lots of room if your optimistic. SGZI is China coal company that had a great quarter. It shot up this week and I sold both in real life and in PSL7 - although it really could go much higher.
PS: I believe I would have won PSL6 (or come very close) if it had lasted another 2 weeks and possibly if it had only lasted another 2 days. Both LWAY and SOYO, which I had doubled down on, shot up and the other 2 stocks I had held steady - just something I noticed. My portfolio is sporting an Ameritrade balance that is at an all-time high which is over 6 figures and am focused on turning into over 7 figures. LWAY and SOYO future runs can do it. I started investing roughly 10 years ago with only $6,000 and have not deposited a single dime since - my current balance is from gains over the years and this includes several withdraws to purchase family cars for cash, etc. Work full-time in the rat race and become obsessed with stocks on many evenings and weekends. - have no desire to become a full-time trader - more of a buy and hold until it’s time to sell kind of guy and always on the hunt for “the one”. Typically hold good quality stocks I buy for over a year, unless they do something I really don‘t like. Read IBD religiously - always learning and fully realize that everyone is prone to errors and mistakes - lots of smarter people out there than me and a community of thoughts and opinions is invaluable (except for those eternally pessimistic anti-American bears - he, he).
Here are some general guidelines I follow as stated on my board:
Preferences:
**Profitable or nearing profit, good revenue/sales growth, positive shareholder equity (absent goodwill), positive cash flow, good management, low float, insider ownership above 20%.
**Red Flags - The big No's - we are looking for: No history of or signs of significant dilution, no large debt, no big convertible debentures, no large S-8's, SB-2's, filings: 14c's or Reg D's or 424B's, no significant lawsuits against the company, no history of R/S or big F/S, no associations with Cornell or Laurus, no big insider selling, no history of bankruptcy, no big declines in revenues (unless associated with removal of non-profitable portions of business), no big declines in profits.
***Bonus if: good chart, increasing margins, hot sector, expanding backlog of unfilled orders, unique product, high demand product, accelerating earnings and/or revenue, last 2 quarters of earnings growth, 20% or higher insider ownership, recent insider buying, good volume, sell product direct to public.
****Super Bonus = "big idea" with steps taken to implement .
