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di4

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di4

Re: None

Friday, 04/20/2007 9:20:46 AM

Friday, April 20, 2007 9:20:46 AM

Post# of 482
4/4/2007 ***********************************************
ZACKS.COM PROFIT from the PROS
** Tactics that Work in Good and Bad Markets **
***********************************************

Today's Topics: Wednesday - April 4, 2007

1) ZACKS RANK BUY STOCKS - Today we highlight four new stocks
with a short-term "Buy" or "Strong Buy" recommendation:
Valmont Industries (VMI), Tele Norte Leste Participacoes
(TNE), AG Edwards (AGE) and Humana (HUM). Get these stories
below.

2) SCREEN OF THE WEEK - Kevin Matras goes over an exciting
screening strategy called `Best Buys'.

3) ZACKS EQUITY RESEARCH - Coal companies seem to be wary of
bringing new supply on the market with the current choppy
pricing environment. Read the Analyst Interview and get our
Bull and Bear Stocks of the Day.

4) ZACKS WEALTH MANAGEMENT - It is now a good time to consider
the type of tax-deferred accounts to fund for retirement and
beyond.

5) BEST OF THE ZACKS $100,000 CHALLENGE- Dreyerd is getting on
board a mining company that's moving higher. Read this
Simulator participant's blog post along with two of his
competitors.


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==============================================

1) ZACKS RANK BUY STOCKS

==============================================

Zacks #1 Rank stocks average a 31.8% annual return. Every day
on Zacks.com we highlight four new Zacks Rank Buy stocks. Each
individual stock is chosen based on how well they match the
criteria for the four main schools of investing: Aggressive
Growth, Momentum, Growth & Income and Value.

Aggressive Growth - Valmont Industries, Inc. (VMI)

Valmont Industries, Inc. (VMI) only has one analyst following
the stock, but he raised his 2007 estimate from $2.78 to $2.96
per share on February 16. Similarly, next year's estimates
have risen 35 cents to $3.40 per share over the past 60 days.
The stock is attractively valued at 17.4x next year's
estimate. Read the full analysis on VMI at
http://at.zacks.com/?id=2498


Growth & Income - Tele Norte Leste Participacoes (TNE)

Investors should be attracted to Tele Norte Leste
Participacoes (TNE) for its growth prospects as well as its
healthy dividend payout. The company has completed its major
capital expenditures, which should leave it in better shape to
pay down debt and increase its dividends. Furthermore, the
strong Brazilian economic environment will continue to help
the company. Read the full analysis on TNE at
http://at.zacks.com/?id=2499


Momentum - AG Edwards Inc. (AGE)

AG Edwards Inc. (AGE) recently reported a 28% earnings
surprise, with every segment posting full-year growth. As a
result, the stock is trading at 52-week highs on stronger than
average volume, increasing the potential for continued
momentum. Read the analysis of AGE at
http://at.zacks.com/?id=2500


Value - Humana Inc. (HUM)

Humana Inc. (HUM) recently surpassed fourth-quarter
expectations by 4.6% on earnings that more than doubled from
the previous period. Despite faster growth, the stock trades
at a discount to both the market and the industry. While
possible Medicare Advantage cuts warrant attention, concern
may be overblown. Read the full analysis on HUM at
http://at.zacks.com/?id=2501


Zacks Rank Resources

* Zacks Rank Homepage at http://at.zacks.com/?id=3102

* Zacks Elite: Discover Ben Zacks' hand picked #1 Rank stocks
on his Timely Buys list at http://at.zacks.com/?id=2546

* Zacks Rank Breakout Trader: When a stock moves quickly to a
Zacks #1 Rank, this trading service uses that turnaround to
make 55% a year. Learn more at: http://at.zacks.com/?id=3495

* Zacks Options Trader: Combine the timeliness of Zacks #1
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* Zacks Wealth Management: Own all the Zacks #1 Rank stocks in
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==============================================

2) SCREEN OF THE WEEK

==============================================

Zacks.com offers a unique stock search strategy from Kevin
Matras each week to help you Profit from the Pros. Each week,
Kevin shares with you another winning screen he has discovered
using the Research Wizard software from Zacks Investment
Research. Learn more about the Research Wizard at:
http://at.zacks.com/?id=2335

Best Buys

Here's a new screen that was created with the Research Wizard.
By popular demand, I'm excited to share it again in this
article.

It's a very robust strategy in and of itself and works
exceedingly well with many of our other strategies that come
loaded with the Research Wizard program.

Parameters:

* Zacks Rank <= 2 Or
The % of Brokers Ranking the Stocks a Strong Buy/Buy >= 50%
(I'm looking for stocks that have a Strong Buy or Buy Rating
from Zacks or that have 50% or more of the Brokers Ranking it
a Strong Buy or Buy)

* Price to Sales <= .75
(A Price to Sales Ratio of 1 means you're paying $1 for every
$1 of sales the company makes. A P/S Ratio of .75 means you're
paying only 75 cents for every $1 of sales the company makes -
which is a great value.)

* ROE >= 15
(This is net income divided by common equity and is a measure
of how good a company is being run. In other words, a company
with an ROE means that 15 cents of assets are being created
for every one dollar of shareholders equity.)

* Current Price >= 5

* Average 20-Day Volume >= 100,000
(I want to make sure it's well traded.)

* % Rating Change over the last 4 Weeks = Top # 5
(This narrows the screen down to the 5 stocks (always only 5
stocks) with the biggest, (i.e. best) increase in the Average
Broker Rating.)

Results

I ran a series of separate tests over the last six-year time
span using a four-week holding period. Each run was started on
a different date to eliminate coincidence and to verify
robustness.

In 2001, this screen showed an average compounded gross return
of 51.4%.

In 2002, it showed a 36% return.

2003; a whopping 91.2% return.

2004 showed a 35.9% return.

2005 was 44.4%.

And in 2006, the avg. compounded gross returns were 58.4%.

I've also been experimenting with a slightly higher percentage
of Strong Buys/Buys and have found that 60% does very well
too. But anything higher than that starts diminishing returns
instead of increasing them.

Give this strategy a try in your own trading and see how it
can help you pick better stocks.

This strategy always only picks five stocks per run.

Here are three of them for this week (Tuesday, 4/3/07):

ADM Archer Daniel Midland Co.
BGFV Big Five Sporting Goods Corp.
XRTX Xyratex Ltd.

(This strategy is now available in the Research Wizard in the
SoW strategies folder.)

Sign up now for your two-week free trial to the Research
Wizard and get the rest of the stocks on this list. Start
trading this strategy today. And don't forget to check out the
other winning trading strategies that come loaded with the
program. Know when to buy and when sell. It's all there.
http://at.zacks.com/?id=2335

Discover all the Free Screening Tools on Zacks.com at
http://at.zacks.com/?id=2336

Disclosure: Officers, directors and/or employees of Zacks
Investment Research may own or have sold short securities
and/or hold long and/or short positions in options that are
mentioned in this material. An affiliated investment advisory
firm may own or have sold short securities and/or hold long
and/or short positions in options that are mentioned in this
material.

====================================================

3) ZACKS EQUITY RESEARCH

====================================================

With energy prices again starting to take news headlines these
days, we wanted to speak with senior analyst Matthew Thurmond
about how the coal industry is getting along these days. He
was available for a few questions.

With 2006 numbers in, how did the coal sector fare last year?

Well, coal is a fairly fragmented commodity business, so the
key data points to look at are supply, demand and price.
Supply for the year was up just under 3%, to around 1.16
billion tons. Surprisingly, demand was actually down about 1%
for the year, to around 1.11 billion tons.

More...

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Zacks Equity Research continued...

This base economic squeeze, along with year-over-year pricing
declines for oil and gas, led to lower coal pricing. For
Central Appalachian coal, pricing has dropped sharply from the
post-hurricane peaks we saw at year-end 2005. Last year, per-
ton pricing dropped from the high $50's to around $40. Year-
to-date, pricing has remained mostly unchanged, continuing to
hover around the $40 mark.

How have producers responded to the lower pricing levels?

As I mentioned in the last interview, many of the larger coal
miners have taken steps to curb the price decline. The three
miners I cover for example, Arch Coal (ACI), Peabody (BTU) and
Consol (CNX), have all been paring production.

The miners I follow all seem to be wary of bringing new supply
on the market with the current choppy pricing environment.
This production discipline is good for the sector and helps
ensure that per-ton rates won't get driven down sharply. For
example, Arch dropped its 2007 production guidance from 140
million tons to just over 130 million and Consol is refusing
to increase production unless the market clearly demands it.
Peabody, the world's largest coal miner, is putting off its
massive "School Creek" mine build-out until at least 2009. So
overall, my coverage base is able to keep pricing and margins
stable by curbing their production levels.

Another factor worth mentioning is that larger miners such as
these are slightly insulated from near-term spot price
volatility. In fact, during the fourth quarter, each of my
three miners reported fairly stable year-over-year pricing.

These larger miners benefit from long-term sales contracts.
They sign these with utilities that are looking for a reliable
supply stream. The miners are usually able to leverage their
reliable supply base and negotiate and lock-in more favorable
rates than what is seen in the spot market.

Coal gasification is one environmentally friendly way of using
coal as a fuel source. Is there any news on the progress of
this as a useful technology?

Coal gasification is coming along, but still very slowly. For
those who don't know, the main reason to "gasify" coal is to
reduce the pollutants released when it is burned in power
plants. If burned as a gas, the pollutants can be more easily
separated and in many cases, sold as useful byproducts. Since
coal-fired generators producer over 50% of domestic
electricity, the widespread adoption of coal gasification
plants could significantly reduce air pollution.

Another benefit that has been talked about more and more
lately is carbon sequestration. When transforming coal into a
combustible gas, the CO2 can be removed in a concentrated
stream. This makes it more economical to store the greenhouse
gas in, say, a depleted oil well or an underground aquifer.

Read the complete ANALYST INTERVIEW article at
http://at.zacks.com/?id=2525

Matthew Thurmond is a senior analyst covering the coal
industry for Zacks Equity Research.

****************************************************************

MORE FROM ZACKS EQUITY RESEARCH...

Analyst Blog

Real-time market insights from Zacks Equity Research Analysts.
Stocks featured recently include Northrop Grumman Corp. (NOC),
Bayer AG (BAY), Intevac (IVAC) and Archstone-Smith Trust
(ASN). See their latest posts at http://at.zacks.com/?id=2582


BULL OF THE DAY

Smith International (SII) - Strength in Leverage.
Full Zacks research report at http://at.zacks.com/?id=2325


BEAR OF THE DAY

Atmel Corp. (ATML) - Expecting Weakness.
Full Zacks research report at http://at.zacks.com/?id=2326


EARNINGS PREVIEW

The Week of Apr 2 - Apr 6

Two religious holidays will have an impact on trading activity
this week:
http://at.zacks.com/?id=3243


EARNINGS TRENDS

Growth to Slow in First Quarter

More estimates for 2007 are being cut than raised,
particularly for Industrial and Consumer Discretionary stocks:
http://at.zacks.com/?id=2396


Rating Upgrades (Premium)

Find out which stocks have been recently upgraded by Zacks
Equity Research:
http://at.zacks.com/?id=2990


Zacks Equity Research Buys (Premium)

Read the reports on all of the stocks on the
Zacks Equity Research Buy List:
http://at.zacks.com/?id=2991


****************************************************************

Learn More about Zacks Equity Research at
http://at.zacks.com/?id=2323

Full access to Zacks Equity Research is now available on
Zacks.com:
http://at.zacks.com/?id=2992

Zacks Wealth Management: Own all the Zacks #1 Rank stocks in a
portfolio managed by Zacks. Learn more at
http://at.zacks.com/?id=2713


====================================================

4) ZACKS WEALTH MANAGEMENT

====================================================

Every week, Zacks Wealth Management provides informative
articles on how to build and protect wealth. Today's topic is:

Diversifying your Tax Risk

With the Roth IRA now permanently in place, and since all
individuals will have the ability to convert Traditional IRA
assets into Roth IRA assets starting in 2010, it is now a good
time to strategize whether and what type of tax-deferred
accounts to fund for retirement and beyond.

Keep in mind, the IRS is going to give you the tax break on
the front end (pre-tax contributions to 401K) or on the back
end (tax-free distributions from Roth IRA) but not both.
Deciding whether to fund retirement vehicles on a pre- or
post-tax basis will be based upon:

* Current cash flow
* Current and future tax bracket
* Changes in tax code during one's lifetime

By contributing or converting assets into a Roth IRA in
addition to assets in a Traditional IRA, you can decide at
anytime in retirement whether its more beneficial to take a
tax-free distribution or a distribution taxed as ordinary
income. What if you are in a lower tax bracket at age 70 1/2
years or older? It may make sense to take a distribution from
a Traditional IRA and allow the Roth IRA to continue growing.
In fact, even after 70 1/2 , you can make contributions to a
Roth IRA if you have earned income.

The Roth IRA is also an effective planning tool to pass assets
down to beneficiaries to be distributed tax-free -the younger
the beneficiary, the better!

For those of you who make both pre- and post-tax contributions
to your 401k, at the point you leave your company or retire
and rollover the assets to an IRA, you have a couple of
options.

You will want to go two different directions on the pre- and
post-tax portion. The pre-tax portion will go into the IRA
Rollover. The post-tax portion can go into a non-qualified
account. The other option pertaining only to the post-tax
portion is to transfer it into a non-deductible IRA. Depending
on your modified AGI (before 2010), you can subsequently
convert that portion into a Roth IRA, understanding any growth
on the post-tax contributions will be taxed as ordinary income
at conversion. The upside is the distributions from the Roth
IRA will eventually be tax-free.

Again, whether it makes sense to take these steps will be a
function of your proximity to retirement, tax bracket, and
also not having too much "stuck" in tax-deferred vehicles
creating estate tax exposure. You must consider all these
factors in determining the optimal mix between qualified and
non-qualified accounts and then determine the appropriate
qualified accounts to fund.

Obviously, more options exist today to manage your retirement
in a way to keep more money in your pocket. Consequently,
these issues have become more complex and require a full-
planning process where all scenarios are explored. But by
taking these steps now, and determining the optimal amount to
defer, you will come out ahead in the long-run.

If you have any questions or want an evaluation on how you
have your accounts structured, feel free to contact me at
ffiebig@zacks.com.

Fritz Fiebig a Certified Financial PlannerTM professional.

This article is provided for informational purposes only and
does not constitute legal or tax advice. Zacks Investment
Management, Inc. is not engaged in rendering legal, tax,
accounting or other professional services. Publication and
distribution of this article is not intended to create, and
the information contained herein does not constitute, an
attorney-client relationship. Do not act or rely upon the
information and advice given in this publication without
seeking the services of competent and professional legal, tax,
or accounting counsel.

CFP Board, a nonprofit regulatory organization, fosters
professional standards in personal financial planning so that
the public values, has access to and benefits from competent
and ethical financial planning. CFP Board owns the
certification marks CFP(R), Certified Financial Planner(TM) and
federally registered CFP (with flame logo), which it awards to
individuals who successfully complete initial and ongoing
certification requirements. CFP Board currently authorizes
more than 50,000 individuals to use these marks in the United
States. For more about CFP Board, visit
"http://www.cfp.net/"www.CFP.net.

Learn more about Zacks Wealth Management at
http://at.zacks.com/?id=2994


==============================================

5) Best of the Zacks $100,000 Challenge

==============================================

Zacks is conducting a nationwide talent search to find the
very best stock pickers. The winner gets a $100,000 dream job
with Zacks! Sign up for free to join the competition, or just
read what stocks the leading players are trading on the Zacks
Challenge Player Blogs. http://at.zacks.com/?id=3469

Best of the Zacks Challenge Player Blogs
-----------------------------------------

Here's what the leading players are saying lately:

DreyerD

ENTERED THIS AM AND NOW ADDING TO URZ (URZ)
Uranerz Energy (URZ) is starting to explode right now. IPO
stocks that break to new highs can be special.

Read More or Comment on this post:
http://at.zacks.com/?id=3491


Rierjael

TECH STOCKS ARE TRICKY NOW (HPQ)
HPQ is the best of technology stocks but in the short term may
not see a lot of upside. Keep a close eye on HPQ and know when
to pull out.

Read More or Comment on this post:
http://at.zacks.com/?id=3492


Beris (Rank #16 with $143,468)

BEST POSSIBLE ENTRY OPPORTUNITY IN THE WORLD'S LARGEST BUILDER
OF ELECTRICAL NETWORKS (ABB)
ABB keeps winning millions in contracts to supply power
generation and distribution systems for marine vessels being
built in Europe and Asia. It also engages...

Read More or Comment on this post:
http://at.zacks.com/?id=3493


Read all the Player Blog posts at:
http://at.zacks.com/?id=3482


****************************************************************

OTHER TOOLS FROM ZACKS

At the heart of Zacks Investment Research is the Zacks Rank
investment philosophy that continues to vastly outperform the
market. Our Zacks #1 Rank (Strong Buy) List has generated the
following results for investors:

* +31.8% average annual return since 1988 versus +11.8% for
S&P 500

* Outperformed S&P 500 in 17 of the last 18 years

* +43.8% total return from 2000 to 2002 - the worst
bear market in over 60 years.

* +18% in 2005

And just as importantly, the Zacks #5 Rank stocks (Strong
Sell) list has alerted investors as to which stocks to dump
from their portfolios to avoid unnecessary losses.

To truly take advantage of the Zacks Rank, you need to first
understand how it works. That's why we created the free
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Or view the full list of Zacks #1 Rank (Premium) stocks at
http://at.zacks.com/?id=2279


FREE PORTFOLIO TRACKER

Do you believe that these events affect stock prices?

* Broker Recommendation changes
* Earning Estimate revisions
* Earnings Announcements
* Zacks Rank changes

If you answered yes, then how are you staying on top of these
changes for your stocks? If you are one of the 45,000
investors who wake up every morning to the Daily Portfolio
Updates emails from Zacks.com, then you are all set. If not,
then sign up now to get this vital information sent to you
daily and improve your portfolio's performance. Did we mention
it's free? Get started now by going to
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---------------------------------------------------------

We hope you enjoyed this issue of "Zacks.com Profit from the
Pros" and we look forward to visiting with you again tomorrow.

REFER-A-FRIEND

If you enjoy this e-mail newsletter, then please pass it along
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Regards and Happy Investing,

Charles Rotblut, CFA

Senior Market Analyst
Zacks.com

p.s. What is the mission for Zacks Profit from the Pros?
To find out how we will help you become a more
successful investor, visit http://at.zacks.com/?id=2334

The Zacks Performance Rank performance is the total return
(price changes + dividends) of equal weighted portfolios,
consisting of those stocks with the indicated Zacks Rank,
assuming zero transaction costs and monthly rebalancing.
Simulated results do not represent actual trading and may not
reflect the impact that economic and market factors might have
had on decision-making if an adviser were actually managing a
client's money.

*The S&P 500 Index is a well-known, unmanaged index of the
prices of 500 large-company common stocks, mainly blue-chip
stocks, selected by Standard & Poor's. The S&P 500 Index
assumes reinvestment of dividends but does not reflect
advisory fees. An investor cannot invest directly in an
index.

Disclaimer: Past performance does not guarantee future
results. Investors should always research companies and
securities before making any investments. Nothing herein
should be construed as an offer or solicitation to buy or sell
any security.

To contact us by mail:

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