Step Right Up... And Play B*A*R*R*O*N*S

S

stonedinvestor

Yes folks after a two week absence due to really bad issues the stonedinvestor is back with his fireside reading of barrons. What gems will he pull from these pages? His record is 100% so far- we have made at least $1,000 each week from each issue we have read together... let's take a free rolling look inside at this weeks issue...

First Page Charting The Market. I like this page it gives you a quick glimpse at some pretty obvious charts with a little commentary to go with it. The first thing that blasts off the page is NIKE wow she soared past a hundred it seems just like last year I was buying and selling this $60 to $70. Maybe buy and hold does work? Too high now. Too late now. Where is Cramer with his sell Nike now at $77 call!
RIMM what can I say that was me who bought at $79 in case you were wondering. Too high now.
China National Offshore , CNOOC looks interesting it bounced sweetly off it's 200 day but look they have struck a deal to but LNG from Iran! Bad move guys. Lets move on.

The Trader column brings up one interesting point the near perfect copy of this year to last year in that last year a strong 4th QTR rally peaked on DEC 14 and then the market slid 2% heading into the holidays. This year the market peaked on DEC 15th!
WOW that's too close for coincidence- some backtesting is needed here but it may say something about mutual fund flows and when they close their books. And yes we are off near 2%!

As we read on in the Trader column we see this is going to be one of those " Told You So " issues when past good calls are triumphed to the umpteenth degree so here we go FORD & Pier 1 are you kidding me? Two crapoloa stocks. But they had big moves. UAL, Wendys nice picks but not biting... Alaska Communications? (ALSK) don't know that one, up 32% with a big dividend hmm! This will be our first candidate.

Lets take a look at the winners and Losers to see if we get any ideas... Bently Pharm (BNT) back from the dead with a 17% move, that we will take a look at. Oh dear Exact Sciences again! (EXAS) I have a long and painful history with this stock. They offer VIRTUAL COLONOSCOPY! How can this not be a good thing? Up 35% this will be a candidate. Oh No Not Arotech again! (ARTX) batteries all the time with these guys to the US government it showed up on a momentum screen for me last week I looked at it and tossed it- up 39%. Sh*t!

Lets move on In 13D filings I see Tontine Partners has boosted it's stake in Wheeling -Pittsburgh to 1.97 million shares or 13.9 % Thats a large commitment,
(WPSC) will be at the top of our list for research.

In Insider transactions we have a WPSC highlight again- 1 buyer went in for 138,800 shares! A $2 mil plus commitment... interesting. That's a Barrons hint, if I can find a third reason to commit I'll be in next week! Mankind (MNKD) is highlighted too with 2 buyers- that's the inhaled insulin game again- interesting company 2 buyers 26,000 shares.

In research reports Gigamedia a stock I already dig is in there but with pretty stale news by market standards, not sure if that's enough (GIGM).
Looky, Looky OSIS! I already gave that info to ET on another thread this past week- it's nice to be ahead of Barrons!

Wow pretty packed issue so far let's quickly peruse the low priced column/ spec stocks for big movers to look at: Almost Famous? AFAM- plus $1.94 @ $39
Amerigon? ARGN- plus 98 cents @ $10.31 Yum!
Dialysis Corp! DCAI- An old fave from last year used to trade much higher plus 86 cents @ 12.97.
Onstream Media? ONSM plus $1.34 @ $3?
Gyrodon? GYRO plus $2.49 @ $59 and lastly
EuroTech Holdings CLWT plus 71 cents @ $5.16.

As we wrap up this holiday issue their is an interesting piece on E.W. Scripps. It reads very well, for whatever reason I always thought this was a pharmacy benefit Company!( SSP ) bad symbol!
I've been dabbling in media stocks without too much success this one looks potentially very good.

Lastly there is an interview with Chicago-based Institutional capital they have two interesting picks
Temple Inland TIN & InterContinental Hotels Group
(IHG).....

Oh Man! Let's go through the ideas to research: The Top 10 ideas in this weeks Barrons are: ALSK / BNT / EXAS / ARTX / WPSC / MNKD / GIGM / SSP / TIN / IHG... The other 6 long shot candidates are: AFAM / ARGN / DCAI / ONSM / GYRO / CLWT.

It's Christmas time I don't want to do all this work!
Somewhere in this mess of symbols is a $1,000 payout for the stonedinvestor and you! Our mission is to find it... stay tuned! And PLEASE throw in your own choices for investment from this power- packed
episode of THE BARRONS GAME!!!!
 
stonedinvestor...

ok...good quality...who do you write for?... freelance?

I could grow accustomed to reading your column with my cup of coffee.

Thanks for sharing on ET.

Good trading to you and I hope those bad issues of the last few weeks are behind you.

Michael B.

P.S. You may have mentioned this in the past, but what kind of store do you own?
 
Thanks Michael B-

I'm hoping to be back to that happy way soon! The holiday season has a way of bringing out my evil twin year after year it never fails. Throw in a few lazy trades when I should of walked away and a 30% year became 24% year pretty damn quick.
I wrote a pretty awesome newsletter in the late 80's early 90's called StonedInvesting. It primarily was circulated by bankers in Boston where my family on my father's side has deep roots at State Street.

A Great Trading New Year To You As Well and Everyone Else On ET!
 
What have I got myself into? The spec stuff alone is just outrageous this week. Lets start with GYRO , this stock is scaring me 1200 shares traded hands friday and it wasn't THAT slow a day! 10 Employees enjoying a special little party 1.2 mln shares outstanding and a rocket ship to the moon chart.
In december alone $45 to $60! Market cap $73 mil.
Listen to how this company got started: Gyrodyne Company of America, Inc. was incorporated in New York in 1946. The Company was engaged in design, testing, development, and production of coaxial helicopters primarily for the U.S. Navy. Following a sharp reduction in the Company's helicopter manufacturing business and its elimination by 1975, the Company began converting the vacant manufacturing facilities and established the rental property operation. Nice! Gyrodyne Company of America, Inc. concentrates its efforts on the development of the real estate holdings in St. James and Stony Brook, New York. Huh? Not exactly Broadway! The converted buildings consist of approximately 184,000 rentable square feet housing 59 tenants in space suitable for office, engineering, manufacturing, and warehouse use. The principal business of the Company is the rental property operation and currently represents its sole source of revenue. Read: If one tenet leaves we all go down the tubes- lets move on.
ONSTREAM
Onstream Media is an online service provider of live and on-demand media communication, including webcasting, webconferencing, digital asset management and web publishing services. The Company's objective is to provide these services via a fully robust, comprehensive digital media services platform DMSP that virtually any company, government agency or other enterprise having a need to manage rich media content will be able to utilize in an affordable and highly secure environment. Oh boy this is going to be the one- I can tell already! It's got alot of stonedinvesting buzzwords in the description. Look at Fridays action $3.64 high settled back to $3.28 with a $2.95 low- that might be where we take a stab at it. Look a little hedge fund played this perfect insider buy 12/5 22,608 shares just before it took off $1 - $3 hell of a play! for Lewis Asset Management? Onstream had $8 mil rev in 05' look at the volume friday! SEVEN MILLION vs 333,800 average. Thats' seven million reasons to be afraid... volume had been hot on the 50 day too this story was getting out. The story: First big jump here was: Onstream Media was climbing on word it signed agreements to integrate some of its Digital Media Service Platform offerings with the Five Across Connect social-networking platform. Onstream was advancing 17.6% to $1.94. Second move last week: Web service provider Onstream Media soared after it announced a sweeping upgrade of its automation and video-search capabilities. The Pompano Beach, Fla.-based company said its technology now easily interfaces with social networking sites and video advertising, and that it allows customers to easily publish videos to the Internet in various formats. New video processing capabilities can also convert speech within videos to text, allowing for more efficient and accurate searches. Shares were up $1.16, or 54.7%, to $3.28. Hate to say it folks if we open down Tuesday this is going to be a Turnaround Special for wed.... looks like management knows how to get a story out!
AFAM 2 for 1 split coming nursing home play no volume. Pretty good numbers though but it's out.
Chart> $20 a lope up to $30 and a woody to $40 sickening. I'm seeing why some of these small companies elect to go public. As long as you never get large enough to enable shortsellers it's up, up and away another private little party without the stonedinvestor.
AMERIGON. Well it sounds like a Mel Gibson movie but it's actually a real company. Car and truck parts 3 buys on the street up from 2 one month ago. Specialize in climate control seats keeps your but warm in the winter AND cool in the summer that's neat but after a few sodas that might lead to a rest stop! One thing I don't like ST volume 50 day is less than the 200 day going up on low volume. No thank you sir.

DCAI> Last earnings report good. Earn up 44% net income up 48% opened two new centers total now of 32 free standing kidney centers. Sadly business looks strong. Fairly bearish chart- In December I would call it a " Hold Up " pattern with a head and two arms in the air surrendering... but at $13 now, if we sit back and wait a bit a break above resistance @$13.50 would probably get turned back at $15 a nice trade in itself but if it didn't stop... it could then make quite a run all the way to $20- $25 It is a Mo Mo stock when in favor, and so even in the dumps it's worth keeping an eye on.

CLWT I already love and have bought it's a crazy company that sells advanced water treatment , lab instruments & test kits and power generator stuff to... China of course. Powerful Chart.

Lets sum up the spec. ONSTREAM ONSM Dialysis Corp Of America DCAI & Euro tech holdings CLWT are the ones to track tuesday so far. More to come...
 
Despite the nice write up in Barrons I don't like SSP's (EW Scripts) look on a chart at all- it has a gentle roll to it and MACD is bearish- up down volume indicates distribution underway, money flow has turned down. Gigamedia is a fun computer game company but it's been dead money since October CDC Corp being the preferred play in this area. Stay away. ARTX hate to say it but yes. If you can stand risk, this supplier of batteries to the government is on one of it's runs. Exact Sciences can we get excited about poop smears again! I've been around the block with this one before 88% success rate detecting colon cancer that's good enough fort me to avoid a colososcopy but maybe not to buy the stock. Why is the stock moving now? Tough to say they presented at two conferences in November the stock didn't move The newest study came out 2 weeks ago the stock did not budge. Could the FDA be moving on this? If so it's another huge leap for the stock. I'm torn between not getting burned again and saying I was right! MACD Bullish RS Bullish up only 39% in a month with 24% of that move on Friday on no news that I see... Volume is not really there. I'm not aware of them even being in front of the FDA with their test. But lets be honest it's not a side effect issue> if a new independent study says 88% accurate- that's going to get an OK. EXAS might be worth a chip here.
MNKD: Chart scares the bejeesus out of me. Might short. Wheeling Steel warned Nov 28 pricing and shipments lower! raw material costs higher! A double whammy. This is now a distress situation with someone taking a big stake. That's not my forte. Can't go there. Bently BNT Got two bits of good news last week one on a production plant (that's huge) one on a generic, looks like a nice trade set up for $2 up to resistance. BNT Looks good. Finally Alaska Comm. CEO dumped 60,000 shares on Dec fourth but it's a great monopoly sort of set up- bringing the high speed DSL up to those poor folks out in Alaska. 36,000 DSL subscribers, 117,000 wireless- Small but just a great, great chart; not straight up, a back N' fill staircase to heaven chart. Baring an earthquake I don't see how a conservative investor could go wrong here with ALSK.

Summery: Worth a strong look: ARTX / EXAS / BNT / ALSK... we'll take a look next week and see who goes into the 2007 portfolio...

oh and ElectricSavant- my store is womens clothing mostly vintage. We are small 750 square feet on Bleecker street and just finished a 10 year lease chances are my wife and I are done with the clothes even though the neighborhood is finally looking up. We just don't have that retail cheer anymore: Cheers everyone!
 
Well it was tough folks, most of the Barons mentions didn't hold up to further scrutiny- but one that I kept coming back to for a variety of reasons is INTERCONTINENTAL HOTELS GROUP, plucked from the recommendations of Institutional Capital on p. 25-26.
Interestingly, for a hotel stock,you will see alot of action last friday on no obvious news but I did dig this up out of the UK:

Intercontinental hotels up 4.8% at 1,217 pence amid continued bid speculation after the Independent newspaper reported that the firm could receive a private-equity approach carrying a potential value of about 1,500 pence a share.

Takeover talk always welcome. Their division Holiday Inn express is positioned for high growth in China The stonedinvestor is all about hotels in China (HMIN is another goody!) At the end of the paragraph discussing IHG Rob Lyon of Institutional capital dropped the private equity bomb and mused " given the recent private equity deal for four seasons , you have to think maybe some would be interested. " That article had to be in the can before Fridays big rumor broke overseas, these guys are obviously on to something ...

Nice wide range today $25.50 - $27.15 Will go in tomorrow @ @25.75 and take a shot with intercontinental Hotels Grp. IHG. ~stoney
 
stoney :)

please keep em' short like that, my attention span is limited.

without making a fool of myself, your are just he sort of writer I enjoy to read...now get back to work...I will put coffee on in the AM...I will check my subscription to see if my email has alerted me...ET is awesome!

Michael B.

p.s. folks you pay for stuff like this!
 
Stoney, whatta ya think about KKD?

Tell us more about the Stoned Investor Newsletter.

I'm lookin for another entry on the CLWT. There's gold in them cesspools.
 
Hey Guildenstern CLWT is going to be a monster this Jan, I believe your entry point is close:

This Chinese-based pollution control company has been basing out for the last 2 ½ years, and on several occasions reached as high as the 7-7 ¼ area before backing off again. From July 05 to Sept 06, a 15-month period, the stock was in a prolonged downtrend, but a new intermediate uptrend began in late Sept that saw the stock breakout in November, gap-up in late November and then pullback and retest the declining tops line and moving average support, before trending higher. On last Friday the stock jumped 25% on 2 million shares and then took out a very key overhead resistance level at around 4 ¾. It made an upwards spike and retested the breakout. Initial trading is target at around the 6 area, secondary target at 7 ½ and longer-term target at the 10 range. Current price support exists around the 3-3 ¼ area.

All we need is a little froth in Mr. Market for CLWT to be a rocket ship. I'm back in @ $5.15 (slightly underwater).

Haven't spied in on KKD in a while let me troll the internet. The SI Newsletter was a hoot I took a very
thematic approach often highlighting Biotech & Retail two of my specialties and usually only put out one a quarter and an end of year issue. The title was so embarrassing for these banker types I had to put a picture of Indiana Jones on the cover running from the big rolling ball (classic shot!)> as in don't get rolled over by a big moving stone- Mr. Market!
Stonedinvesting was also sort of a " don't judge a book by it's cover" play on words as well as a lifestyle! There was a long period when every time I put an issue out the DOW was within 30 points of the same number- we had a DOW 10,000 celebration many, many times... eventually I could feel the enthusiasm for the market in general and my newsletter fading. The was one horrible morning when realized I was down to 9 subscribers at $10 an issue! So I wrapped it up.

Now of course I have found the Internet Blogs and Elite Trader and I am back. Totally free. Totally me!
Peace.
 
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