Daily Archives: October 9, 2011

10-10-2011 . . . 9:30 EDT . . . Wall Street Re-Opens

     “If you can’t beat ‘em, join ‘em.”

     Maybe we can play the game and make some dough.


     On the other hand, as Winston Churchill said, “Don’t give in except to convictions of honor or good sense.”

     Many American communities are taking up the “Occupy Wall Street” phenomenon.

     Allow me to express praise to those on “The Street” throughout North America who are taking up the mantra that the economic system should immediately improve to be fairer and just.


     After reading this Monday’s edition of Investor’s Business Daily, a few things jumped out at me that I’d like to pass along. Do you feel the double meaning of what appeared on page one?


Current Outlook:

Market in correction

     But first…

     The high U.S. unemployment rate is at 16.5% or 9.1%, depending on what source you trust. Congress is still sitting on a national jobs bill.

     Perhaps it could be worse. The Standard & Poor’s 500 Index has fallen 8.1% in 2011. Russia’s market has decreased 32.3% and Brazil’s stocks have gone down 30.2% in the same period.

     Is it ironic with the national debt at a record level that IBD ranks MasterCard #7 and Visa #14? Hey, no matter what – I’d never buy a single share of MasterCard (MA) for $311.46.


Who has patented the latest "happy pill"

     Teddy and I have been tracking about 50 biotech and healthcare securities for the last 18 months. We are expanding our “Watch List.”  IBD mentioned some new ones for us that rank in their top 40:

  • Questcor Pharmaceutical (QCOR)
  • Jazz Pharmaceuticals (JAZZ)
  • Watson Pharmaceuticals (WPI)
  • Alexion Pharmaceuticals (ALXN)

     ALXN is listed by IBD as #1 this week. First among all industrial sectors! This morning’s price is $65.18 per share. In January, its value was about $45.00. Alexion makes medicines to treat cancers, autoimmune disorders, hematologic disease, neurologic diseases, and transplant rejection. Nope, they do not have the “happy pill.”

     Five stocks that we have already been following were also spotlighted in today’s edition.

  • Hi Tech Pharmacal (HITK) at $32.10
  • Cepheid (CPHD) at $39.51
  • Celgene (CELG) at $62.95
  • Perrigo (PRGO) at $95.31
  • Biogen (BIIG) at $100.01

     Incidentally, last Friday when most biotech stocks fell along with the DJIA, BIIG rose in value almost 1%!

 – – – –

     Months ago, we thought that alternative energy companies making solar panels were smart investments. IBD now ranks ‘solar’ #197 (from 1 to 197) of all industry sector subgroups. This goes way beyond the Solyndra federal loan snafu. There must be over ten companies making solar panels in China alone, whose stock values have been dropping.

 – – – –

     ‘Retail – Discount and Variety’ is now listed first. Year-to-date, this group’s stock prices have risen 21.4%. #8-ranked Dollar Tree (DLTR) is now selling for $77.68 per share after last quarter’s earnings per share increased 26%. #17 Ross Stores, valued at $81.99, sales went up 9% last quarter in this economy. Dollar General (DG) at $37.80 per share is ranked #22. Family Dollar Stores (FDO) at $52.82 per share is ranked #45.


Apparel Manufactured From Cash

     My favorite retail store securities, although you are not likely to find discounted goods here, is Lululemon Athletica (LULU). One of my under-twenty year-old associates and I recently visited a store in Palo Alto and were very impressed with quality, variety, location, and customer service. LULU currently has 137 franchises or company-run apparel stores and plans to open 25 or 30 more in North America and Australia before the end of 2011.

     LULU did get one ‘F’ failing grade. There are no offerings on the racks for full-figured women or men. Go figure… wouldn’t you think a 200 or 300-pound American in a fitness program would want to look sharp and attractive working out, too?



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