STOCK
WATCH
This is the watch
list for the week of July 30th. There are 5 stocks (no OTC) in the
regular screen and 4 stocks (one OTC) in the lower volume deviation screen. The
best of the bunch appear to be: DOCX IBPI for the short-term; ASTM EBNX for the
near-term; and AVGO for the long-term. MWAR is an arbitrage play due to
the impending sale for cash (at a fixed
price of $0.68/share). --- This list is updated at the end of every week and
there is a viewable browser layout and spreadsheet downloads available (in .xls
& .slk formats) at http://stockscreens.foray.com.sg Each stock has a market capitalization of
less than $500 million, a float of no more than 66.7% of outstanding shares,
and a share price of $5 or less. When it goes above $5, it is removed from the
list.
Penny Deals
Screen [weekly cycle]:
http://www.foray.com.sg/rjc/Deals.xls
http://www.foray.com.sg/rjc/Deals.htm
http://www.foray.com.sg/rjc/Deals.slk
ASTM (NasdaqNM $2.13/sh) Aastrom Biosciences, Inc. is developing proprietary process technologies and devices intended for a broad range of cell therapy applications. The AastromReplicell System is the Company's lead product under development, and consists of a clinical cell culture system that operates single-use therapy kits tailored for patient therapy in the emerging cell therapy market. Aastrom is currently developing its own SC-I Therapy Kit, CB-I Therapy Kit and CB-II Therapy Kit for use in stem cell therapy in cancer patients. Stem cell therapy is a form of cell therapy used to restore blood and immune system function to cancer patients following chemotherapy or radiation therapy. No significant debt, High level of liquidity in relation to current obligations.
AVGO (NasdaqNM $2.32/sh) AvantGo, Inc. provides software and services that enable and enhance the use of Internet-based content and corporate intranets to mobile devices, including personal digital assistants and Internet-enabled phones. The Company licenses its AvantGo M-Business Server products to help companies provide their employees, customers, suppliers and business affiliates with easy access to business information. The Company's AvantGo Mobile Internet service allows individuals to access Internet-based content and applications, and gives content providers and other businesses a new medium for reaching and interacting with new and existing customers, increasing customer acquisition and retention. In addition, the AvantGo Mobile Internet service gives businesses the option of leveraging the Company's base of over two million registered users. The Company also offers professional services to help customers deploy and maintain its software and services. Heavy institutional buying in the last quarter, No significant debt, High level of liquidity in relation to current obligations. On July 24th, AVGO reported its financial results for the second quarter ended June 30, 2001. Revenues for the quarter were $6.5 million, representing an 87% increase over revenues of $3.5 million for the same quarter last year, and gross margins were 78%. On July 26th, JP Morgan initiated coverage with a Lonf-Term Buy recommendation.
EBNX (NasdaqNM $4.45/sh) eBenX, Inc. provides
specialized technology-based solutions for the administration of health and
welfare benefit programs. The Company uses the Internet, proprietary technology
and strategic support resources to simplify and automate the sharing of data,
and the completion of multiple and ongoing financial and administrative
transactions, which are necessary to administer and pay for health and welfare
benefits. The Company's services are designed to provide more choice and
reduced costs for employers; improved efficiencies and strengthened client
relationships for brokers and other benefit advisors; reduced costs and the
ability to offer new products for health plans and other benefit suppliers; and
more choice, convenience and improved service for employees and their
dependents. 41% estimated long-term earnings growth rate, Low Price/Book ratio
of 0.6x, Heavy institutional buying in the last quarter, Some insider buying
activity, No significant debt, Very High level of liquidity in relation to
current obligations, Low average volume. On July 26th, EBNX reported
earnings. Revenues for the second quarter increased 22.4 percent to $7.8
million compared with $6.4 million for the corresponding quarter in 2000,
consistent with the middle of the guidance range provided by the company.
Excluding $6.3 million in amortization of goodwill and stock-based
compensation, the pro forma net loss for the quarter was $3.7 million or
$(0.19) per share compared with a pro forma net loss of $(0.08) per share for
the same period one year ago. Pro forma net loss per share also was consistent
with the middle of the guidance range provided by the company.
IBPI (NasdaqNM $1.82/sh) IntraBiotics
Pharmaceuticals, Inc. develops and intends to commercialize novel antibacterial
and anti-fungal drugs for the prevention or treatment of serious infectious
diseases. The Company's clinical and development programs focus on solving
medical problems for patients who have few or no satisfactory alternatives.
Because of their bacteria- or fungi-killing mechanisms, the Company's drug
candidates are designed to be useful in fighting microorganisms that are resistant
to traditional antibiotics. Low Price/Book ratio of 0.74x, No significant debt,
High level of liquidity in relation to current obligations. Earnings will be
announced on August 1st.
RTEL (NasdaqSC $5.00/sh) Raytel Medical
Corporation is a provider of healthcare services, focusing on the needs of
patients with cardiovascular disease. The Company provides remote cardiac
monitoring and testing services utilizing transtelephonic monitoring
technology. Raytel also owns and operates seven freestanding cardiovascular
diagnostic facilities, two freestanding facilities that provide nuclear
cardiology diagnostic services and a multi-specialty medical clinic that
focuses on cardiology. In addition, the Company provides outpatient diagnostic
imaging services, through operating and investment interests in eight
freestanding imaging centers, and manages a diagnostic imaging provider network
that operates in eight mid-Atlantic states. Low Price/Book ratio of 0.3x, Low
debt, and Very Low average volume.
DOCX (NasdaqNM $3.40/sh) Document Sciences Corporation develops, markets and supports a family of document automation software used in high-volume print and transactional electronic publishing applications. Its document automation software, the Document Sciences Autograph family of products, enables personalized publishing solutions for many industries, including insurance, managed healthcare, financial services, commercial print services, government, telecommunications and manufacturing. Its products facilitate an important form of communication between organizations and their customers by employing enterprise database assets to produce high-quality, personalized documents that are ready to print on demand, e-mail or distribute over the Web using HTML or Adobe Systems' PDF technology. No significant debt, High level of liquidity in relation to current obligations, Very Low average volume. Volume on Friday was 18x the average volume. On July 25th, the company reported net income for the quarter ended June 30, 2001, of $723,488 compared with a net loss of $382,875 for the quarter ended June 30, 2000. Net income per share for the quarter ended June 30, 2001, was $0.19, based on 3,796,560 diluted shares outstanding, compared with a net loss per share of $0.04, based on 10,757,528 shares outstanding for the same quarter in 2000. Revenues for the quarter ended June 30, 2001, were $5.7 million, compared with $5.2 million reported for the quarter ended June 30, 2000. On July 27th, it was announced that The Principal Financial Group®, the nation's 401(k) leader, selected Document Sciences Corporation's Autograph(TM) software to automate production of pension plan policies and contracts. The Principal Financial Group is a leading global financial institution offering businesses, individuals and institutional clients a wide range of financial products and services including retirement and investment services, life and health insurance, and mortgage banking.
EACC (OTC $1.64/sh) eAutoclaims.com, Inc. (EACC) provides Internet based collision claims administration services for automobile insurance companies and corporate automobile fleet management companies. EACC provides an infrastructure that links automobile insurance companies and self-insured fleet owners with thousands of collision repair shops and support facilities located throughout the United States. The Company's services provide customers with a cost-effective means of monitoring repairs and controlling expenses incurred in the process of evaluating and paying collision claims. High Price/Book ratio of 25x, Heavy institutional buying in the last quarter, No significant debt, Low average volume.
INOW (NasdaqNM $2.25/sh) InfoNow Corporation is
engaged in enterprise channel management, and provides e-business services to
Fortune 1000 companies that sell locally through dealers, distributors or
branches, also known as channel partners. Its technology and services enable
traditional, brick-and-mortar companies to utilize the power of the Internet to
sell to and service end customers in collaboration with their channel partners.
Through its iChannel suite of products and services, InfoNow provides a
comprehensive, e-business solution that enables companies to increase revenues,
lower operating costs and deliver a significant return on investment. InfoNow
focuses on three market segments for the sale of its products: high technology,
financial services and most recently, industrial. At year-end 2000, the Company
had 58 clients using its iChannel services. No significant debt, Low average
volume.
MWAR (NasdaqNM $0.67/sh) Microware Systems Corp.
develops, markets and supports sophisticated real-time operating system
software and development tools for the traditional embedded systems,
communications, and consumer products markets. Microware's product line is
built around its OS-9 real-time operating system, which was first introduced in
1980 and has been continually refined to incorporate advances in technology.
OS-9 is a real-time operating system targeted at embedded systems, or computers
dedicated to specialized tasks embedded within application-specific industrial
or computer products. 25% estimated long-term earnings growth rate, Significant
debt, Low average volume. On July 2nd, RadiSys Corp. RSYS announced
that it would buy Microware for $13.1 million in cash in order to offer a more
enhanced network processor product. Under the deal, which is expected to close
in the third quarter, RadiSys will pay 68 cents a share for each outstanding
Microware share. RadiSys will also pay $2.2 million to retire Des Moines,
Iowa-based Microware's convertible debt and other securities. On July 3rd,
the company received a delisting notice from NASDAQ. On July 10th,
officials at MWAR said they sent a letter requesting a hearing from NASDAQ to
appeal the potential delisting of the company's common stock from the NASDAQ
National Market.
Recent Penny Deals Screens:
http://www.foray.com.sg/rjc/Deals.xls
http://www.foray.com.sg/rjc/Deals.htm
http://www.foray.com.sg/rjc/Deals.slk
Other Interesting Stock
Screens:
Small Cap Deals Screens: Stocks priced from $5 to $50 per share with market
cap up to $1.5 billion.
http://www.foray.com.sg/rjc/SmallCapDeals.xls
http://www.foray.com.sg/rjc/SmallCapDeals.htm
http://www.foray.com.sg/rjc/SmallCapDeals.slk
Small Cap Low-Risk Screens: Stocks of dividend paying
companies with earnings priced from $1 to $10 per share.
http://www.foray.com.sg/rjc/Low-Risk.xls
http://www.foray.com.sg/rjc/Low-Risk.htm
http://www.foray.com.sg/rjc/Low-Risk.slk
Small Cap Short Screens: Stocks less than $1.5
billion market cap with short interest of 25% or more of the float.
http://www.foray.com.sg/rjc/SmallCapShorts.xls
http://www.foray.com.sg/rjc/SmallCapShorts.htm
http://www.foray.com.sg/rjc/SmallCapShorts.slk
Micro Cap High-Risk Screens: Stocks priced less than $1 per share with market cap
up to $5 million.
http://www.foray.com.sg/rjc/High-Risk.xls
http://www.foray.com.sg/rjc/High-Risk.htm
http://www.foray.com.sg/rjc/High-Risk.slk
Following these Stocks!
http://www.foray.com.sg/rjc/MicroSmall.xls
http://www.foray.com.sg/rjc/MicroSmall.htm
http://www.foray.com.sg/rjc/MicroSmall.slk
@ I am following this group of Short- & Intermediate-Term stocks from July 1st, 2001 through August 31st, 2001. This list is updated at the end of every even month (Feb, Apr, Jun, Aug, Oct, Dec), except in a down market (end of each month). Each stock has a market capitalization of at least $50 million, but less than $1.5 billion. The Micro-Cap & Small-Cap stocks have PEG ratios of 1.25x or less. They are:
Micro-Cap [2or1-month cycle for stocks with market caps between $50 million & $500 million]: ASHW BSH CRDN EPEX EXAC GADZ GNWR GFF HKF HDL LDSH HZO MAXS QFAB RACN RRC SCVL SRR TBCC TSIC. This group of stocks have a projected long-term earnings growth rate range from 10% to 25%.
In this group I like:
EPEX Edge Petroleum Corporation – Very Low PEG ratio of 0.14x, estimated long-term earnings growth rate of 25%, Low PE ratio of 4.3x, Good institutional buying activity, No significant debt & Good liquidity.
RACN Racing Champions Corporation – Low PEG ratio 0.4x, Low Price/Book ratio of 0.73x.
RRC Range Resources Corporation - Low PEG ratio 0.3x, estimated long-term earnings growth rate of 20%, Low PE ratio of 7x.
Small-Cap [2or1-month cycle for stocks with market caps between $500 million & $1.5 billion]: ALB BFT ELY CHRS ESR HUG JLG LIN NCOG NMG.A PHSY PPP PDQ STLD SGY SRZ SFY TGI. This group of stocks have a projected long-term earnings growth rate range from 10% to 23%.
In this group I like:
BFT Bally Total Fitness Holdings – Low PEG ratio of 0.45x, estimated long-term earnings growth rate of 23%, Good institutional buying activity.
ELY Callaway Golf Company – PEG ratio less than 1x, Good institutional buying activity, No significant debt, Good current ratio.
ESR Encompass Services Corporation – Low PEG ratio of 0.45x, Low Price/Book ratio of 0.75x.
STLD Steel Dynamics, Inc. – Estimated long-term earnings growth rate of 20%, Good institutional buying activity, Good current ratio.
SGY Stone Energy Corporation – Low PEG ratio of 0.35x, estimated long-term earnings growth rate of 20%, Low PE ratio of 8.3x, Good institutional buying activity, Low amount of debt.
http://www.foray.com.sg/rjc/MidLarge.xls
http://www.foray.com.sg/rjc/MidLarge.htm
http://www.foray.com.sg/rjc/MidLarge.slk
@ I am following this group of Long-Term stocks from July 1st, 2001 through December 31st, 2001. This list is updated semi-annually (end of Jun & Dec), except in a down market (end of each quarter). Due to the volatility in the stock market, I decided to do an update. This group of stocks typically does not change from month to month, but over a period of time. Each stock has a market capitalization of at least $1.5 billion. The Mid-Cap & Large-Cap stocks have PEG ratios of 1.50x or less. They are:
Mid-Cap [6or3-month cycle for stocks with market caps between $1.5 billion & $5 billion]: AVT MGA MLM MDU NBL POT IQW TDW GWW. This group of stocks have a projected long-term earnings growth rate range from 11.5% to 32.8%.
In this group I like:
AVT
Avnet, Inc. – PEG ratio less the 0.75x, Good estimated annual long-term earnings growth
rate of 15%, Low Price/Book ratio of 0.9x, Low PE
ratio of 7.6x, Strong institutional buying activity.
MGA Magna
International – PEG ratio less 1x, Low PE ratio of 9.7x, very low debt.
NBL Noble
Affiliates, Inc. – PEG ratio less than 0.7x, Low PE ratio of 7.5x.
TDW Tidewater, Inc. – PEG ratio less than 0.5x, High estimated annual long-term earnings growth rate of 32.8%, No debt, and fairly high current ratio.
Large-Cap [6or3-month cycle for stocks with market caps greater than $5 billion]: ABS AL CNI CEG DUK KMG NWL HOT TLM WMB. This group of stocks have a projected long-term earnings growth rate range from 10.9% to 21.5%. Continuing to hold NWL
In this group I like:
KMG Kerr-McGee Corporation – PEG ratio less than 1x, Low PE ratio of 6.8x, Good insider buying activity.
TLM Talisman Energy, Inc. – PEG ratio less than 0.4x, High estimated annual long-term earnings growth rate of 21.5%, Low PE ratio of 8x.
NWL Newell Rubbermaid – Strong institutional buying activity, Dividend yield over 3%, Good product mix.