March 21, 2004
A SECTOR PICKERS MARKET
WILL THERE BE AN EARLY SUMMER RALLY?
Welcome back to all of the faithful "Winners Ahead " stock enthusiasts.
With the end of March coming (1st quarter), and BIG AL and company keeping interest rates where they are and not making a change in wording, the next big question is where is the market and the economy going to go from here. With the election for presidency only 8 months away and the terrorist threat starting to heighten, we will, in my humble opinion see a market that will see-saw back and forth. Lately market drops have been around the 100 point mark, with it taking a few days to claw back. Volatility is a way of life nowadays.
There are a few stocks following that I really like and am a little conservative in my ratings. The reason being that with the economy mired in this up and down and sideway movement, you have to pick sectors and stocks inside, that are leading the way.
Of all the homebuilding stocks out there that I like, DHI has to be my favorite. No other stock, not even Walmart has put up consecutive quarter earning increases as DHI has. 127 stright quarters of upside earnings. WHEW! With mortgage rates continuing to stay at near-record lows and the FED not looking to raise rates to soon, many people are upgrading to the 200 - 500 thousand price range home. That leaves DHI in a positive position to keep up their record earnings pace. I am still looking for this stock to reach 40 by September. They just recently guided higher for the year, and for 2005. DHOM is another housing stock that I like.
MDRX is a small cap electronic medical record company that shows signs of making big gains over the next few months. With small contracts being signed with medical clinics and some other larger hospital contracts in the works, the company should rise above it's competitors and rise to 15 before summer. The new technology that is always being brought to market has helped all the EMR companies prosper. Imagine sitting in your doctor's office and in walks the nurse with her palm-like device, attaches 2 suction cups to your arm, and in 20 seconds walks out. The doctor walks in and with two wand clicks., brings up your records and tells you your blood pressure medicine has helped, or talks about a stress test you took 4 years ago.Watch for this company to zoom soon. A buy above $10.25
Looking at another stock that has risen over 400% in the last year, INTV has certainly had it's share of up and downs. VOIP is what happening for the future and INTV is a market-leader in the field. Microsoft has been in talks with them to use some of there technology in future products. When this happens, look for a sharp upward move to above $25.00. The stock has had a good few weeks runup, and I would be expecting a breather here and a small downturn, which will make an excellent buying opportunity. Look to buy above 13 on it's retreat or above $15.00 if the stock sees no signs of a slowdown and an increase in volume, like there was last week.
For all of us that are geting to be middle-aged and will be needing more advanced medical care through new devices being invented and used, Possis Medical, (POSS), is poised to break-through 30 and take a drastic run at $40.00 soon. Angio-Jet, which is a dialysis clot relieving device is just one of the med devices CEO and president Robert Dutcher and his associates have brought to market to help the aging baby-boomers sustain life. With more products still to be introduced and more monies being spent on healthcare products, POSS, is poised to grow by 20% this year and increase that in the coming year. A buy above 30. There could be a temporary pullback to the 28 area while it catches it's breath before going long again.
As with all stock recommendations you should do your own reasearch before selecting a stock to buy!
Thank you for all your letters and emails the past few months. We will be changing names of the page in the future and will send out an email alert to all who have signed up for the new alerts. I will try to answer all those who write. Thanks again.
Thanks to all of you that have signed up for the E-MAIL ALERT. More quick run stocks to come. GOOD TRADING TO ALL!
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