StockTalkReport. com Issues Investment Opinion on HLEX, MXT, PDII, SANM, SLB and SLI.
Award-winning stock-picking website StockTalkReport. com (http://www. stocktalkreport. com), recently awarded the pick of the week by independent stock-pick-monitoring site Tip Reporter (http://www. tipreporter. com) issues new ratings on HLEX, MXT, PDII, SANM, SLB and SLI...
(PRWEB) April 23, 2002
Stock-picking website StockTalkReport. com (http://www. stocktalkreport. com (http://www. stocktalkreport. com)), recently awarded the best pick of the week by independent stock-pick-monitoring site Tip Reporter (http://www. tipreporter. com (http://www. tipreporter. com)) issues new ratings on HLEX, MXT, PDII, SANM, SLB and SLI...
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1) HLEX (HealthExtras Inc., Insurance)- Long, Buy. Health insurance provider HLEX has shown rising strength this month, gaining 104% from its April 1 52-week low of $2.42. While that kind of sharp gain is a red flag, this stock isnÂ’t showing any signs of slowing. FridayÂ’s 9.7% move took the stockÂ’s 13-day trend line above its 50-day line, a tremendously bullish indicator. It has held above both moving averages for seven trading sessions. Yes, HLEX is overbought and trading at a resistance level, so it should be closely watched. But keep in mind, this stock is still 55% off its 52-week high of $11.01. As far as the fundamentals go, HLEX has shown growth potential. For 2001, the company grew revenue 180%, from $44 million to $124 million, and cut losses by 61% from $10.9 million to $6.8 million. Target Price: $5.34 (8% gain). Stop Limit: $4.65 (6% loss).
2) MXT (Metris Companies Inc., Financial Services) - Long, Strong Buy. Taking a dive from $20 per share down to $11 over the course of one day is always enough to grab our attention and, as it turns out, MXT may be a diamond in the rough. Like so many before it, MXT was hammered on earnings news and a revenue warning; thatÂ’s all it took to slice the stock in half. A look at the long-term chart reveals this is nothing new to MXT. It rode the roller coaster a number of times, consistently recovering to higher ground after taking beatings. This alone isnÂ’t enough for us to recommend the stock, but a number of other variables made us stand up and take notice. A look at the insider activity on MTX reveals a slew of buying this year with no selling whatsoever. Also, MTX now trades with a ridiculously low P/E and revenues that continue to grow at more than 20%. Coupled with a massive short position and a low float of 28 million, any up-trend strength may bring an impressive squeeze that could quickly vault the stockÂ’s price to the upper teens. Evidence of this potential can be see on the OHLC chart with FridayÂ’s nearly 10% move. The stock closed right near its intraday high with trading volume nearly one-quarter of the entire float. Target Price: $19 (44.8% gain). Stop Limit: $11 (16% loss).
3) PDII (PDI Inc., Business Services)- Long, Buy. Four days of buying on this marketing stock has brought it out of the trending doldrums. Since mid-November, PDII has traded in a fairly locked-in trading range between $14 and $22. But buyers are entering the stock. In five of the past six sessions, volume has been at or near 100K, a big jump from the scant interest in prior weeks. PDI Inc., which operates in the sales-and-marketing space of the healthcare sector, has shown solid earnings, with 67% revenue growth in 2001. The stock is a little pricey - with a P/E of 46 - but it is still almost 80% below its 52-week high. Last May, it was trading above $90 per share. As for overhead resistance, the stock should have clear sailing until $30. Target Price: $30 (52% gain). Stop Limit: $18.25 (8% loss).
4) SANM (Sanmina-SCI Corp., Electronic Instruments) - Long, Strong Buy. SANM is showing signs of recovery after bottoming out about two weeks ago. Since touching that 52-week low at a little above $9.50, SANM has shown the beginnings of an impressive up-trend developing on strong volume. This movement has carried the stock back above the crucial 13-day and 50-day moving averages for the first time since late January, with the MACD now pointing clearly upward. No real resistance exists until the $14 level, which will be a key test for any further break upward. A decent amount of support is now built in around $11.20. Additionally, weÂ’ve noticed a fair amount of recent insider buying including an 85,000 share chunk by director Joseph Schell in early February. Target Price: $17.50 (47.3% gain). Stop Limit: $10.75 (9.5% loss).
5) SLB (Schlumberger Ltd., Oil Services & Equipment) - Short, Sell. This leading oil-services stock has already shown signs of deterioration since trading above $62 in early March. When SLB crossed below its 50-day trend line (at $57) on April 3, things worsened. Six days later, the stockÂ’s short-term moving average (the 13-day EMA) crossed below the mid-term line (50-day EMA). The stock has been underwater since then, failing to return to the $56 level. For broader perspective, it should be noted that this is the wrong sector to be heading long. The big oil run-up, which started in mid-November, has run its course, with many of these stocks topping out in March. More bad news came last week, when Senate Democrats halted BushÂ’s bid to expand Arctic drilling. "We are just not going to allow Republicans to destroy the environment," said Majority Leader Tom Daschle (D-South Dakota). Target Price: $47.10 (15% gain). Stop Limit: $60.25 (9% loss).
6) SLI (SLI Inc., Electronic Instruments) - Long, Buy. This lighting-fixture company, whose flagship brand is Sylvania, just saw its share price collapse more than 60% in a two-day blood bath that is showing signs of abating. On Friday, the carnage seemed to stabilize and for those willing to sweat out some high risk, there may be some good upside potential on SLI, now trading well below book value of $4.41. But if you buy it, be sure to keep a tight stop in place and donÂ’t think of this as a long-term investment. In-and-out on a possible bounce is all it may be good for, as SLI is no doubt teetering on the edge. For all we know, SLI could disappear sooner rather than later. According to the companyÂ’s auditors, Ernst & Young, there are doubts about SLIÂ’s ability to continue due to being highly-leveraged and incurring significant losses in 2001. Target Price: $1.50 (54.6% gain). Stop Limit: $0.85 (12.4% loss).
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