Gug's Hot Buys

This is a discussion on Gug's Hot Buys within the Stocks forums, part of the Markets category; I will start off this thread with one of my recent buys. The stock is National Dentex Corp (NADX). I ...

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Old Oct 2, 2006, 1:53am   #1
 
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Gug's Hot Buys

I will start off this thread with one of my recent buys. The stock is National Dentex Corp (NADX). I bought a week ago at $18.80. The stock trades a mere 3,000 shares daily, so it is not a day-trading candidate. The fundamentals for the stock are strong (dental industry will benefit from Baby-Boomers), the valuations are LOW (trades at 1.3 x's Book Value and has a 0.96 PEG ratio), and the stock is extremely over-sold. I believe NADX is fairly valued in the mid $20's, and should reach this level within a year or less.

Please let me know what you think, and some of your "Hot Buys"....
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Old Oct 2, 2006, 11:38pm   #2
 
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gugaplex started this thread Nudder "Hot Buy" for ya, buy BRCM on a dip. May trade down to $27 at worst, but has up-side potential to $40 within 6 months.

Good luck....
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Old Oct 3, 2006, 12:11am   #3
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Hi gugaplex,

I trade exclusively U.S. Stocks so was quite interested when I saw your thread.

I'm afraid I would not personally touch a stock like NADX. With trading volume at just 3000 shares a day, I would question the general market interest in this stock and I would also be concerned about the wide bid-offer spread created by this thin volume. If I was wanting to go for a stock in this industry sector (ie - Medical Supplies), I would be going for sector leaders like CHDX or CPTS - both are leading this sector in terms of earnings and recent price performance.

As for BRCM - again, if I was going to invest in the Semiconductors sector, I would personally choose RFMD which in my opinion has stronger earnings and is currently in a nice price uptrend on the daily chart.

All of this is my opinion of course - please don't think I'm disagreeing for the sake of it!

After all, it's all those differing opinions that make a market in the first place!


Thanks


Damian
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Old Oct 3, 2006, 3:11am   #4
 
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Originally Posted by damianoakley
Hi gugaplex,

I trade exclusively U.S. Stocks so was quite interested when I saw your thread.

I'm afraid I would not personally touch a stock like NADX. With trading volume at just 3000 shares a day, I would question the general market interest in this stock and I would also be concerned about the wide bid-offer spread created by this thin volume. If I was wanting to go for a stock in this industry sector (ie - Medical Supplies), I would be going for sector leaders like CHDX or CPTS - both are leading this sector in terms of earnings and recent price performance.

As for BRCM - again, if I was going to invest in the Semiconductors sector, I would personally choose RFMD which in my opinion has stronger earnings and is currently in a nice price uptrend on the daily chart.

All of this is my opinion of course - please don't think I'm disagreeing for the sake of it!

After all, it's all those differing opinions that make a market in the first place!


Thanks


Damian
Thanks for the input! As for CHDX, whew up over 300% in a year! Seems a little over-valued here. The chart shows a nice little bubble, and should correct soon (although, not immediately). The stock also has a price/book ratio of over 4, while NADX sports a modest price/book of 1.32. Also, the chart is deflated for NADX, giving more room for up-side.

I guess it depends on your style, if the trend is your friend, then CHDX is a good quick pick (but keep yer eye on it, the tide will change abruptly).

Good luck to you my friend.....
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Old Oct 3, 2006, 8:21am   #5
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Hi gugaplex,

Like you say, I think it all depends on trading style.

I should stress that I won't be getting involved in any of the stocks I mentioned - I just think that they are the strongest stocks in the particular industries that you highlighted.


Good luck with your trading!


Thanks


Damian
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Old Oct 4, 2006, 5:44pm   #6
 
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gugaplex started this thread NADX looks to be rebounding back on trend into mid $20's in due time.....
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Old Oct 5, 2006, 11:42pm   #7
 
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gugaplex started this thread Another "Hot Buy", just bought TOA today at $10.11...

Technical Olympic USA (TOA) is a home-builder that has seen an extreme pummeling of its stock. So much of a schlacking, that the market values the shares at nearly half of its Book Value (0.55). Also, TOA has a forward P/E ratio of only 5.19, a PEG ratio of 0.23, and a Return on Equity of 29%!

These numbers jump out at any value investor. The company has faced some scrutiny over a joint venture that they likely will have to write-off, but the stock already reflects this issue and then some. The 5-year chart above shows how badly TOA has been trashed by the market, and how there is a great deal of up-side potential to be had...

Good Luck
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Old Oct 6, 2006, 1:23pm   #8
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Guga - me thinks Phelps Dodge 8276+411(not just the Morgan Stanley upgrade ....... it gapped up after major low)

and Conoco 5788+110 (gap up after 52L) now look interesting......
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Old Oct 6, 2006, 5:44pm   #9
 
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Guga - me thinks Phelps Dodge 8276+411(not just the Morgan Stanley upgrade ....... it gapped up after major low)

and Conoco 5788+110 (gap up after 52L) now look interesting......
For a trade these stocks look good, but as a longer-term play, I would stay away....


Good luck....
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Old Oct 6, 2006, 6:06pm   #10
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Your'e right ..................... but there is something funny going on which I can't explain!
Lets see what happens....

HS
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Old Oct 7, 2006, 12:29am   #11
 
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Your'e right ..................... but there is something funny going on which I can't explain!
Lets see what happens....

HS
Hey, if you can't explain it then stay away from it. Hedge funds may be manipulating the stock which is why something funny is going on. You are better off buying stocks out of favor than over-valued stocks that are destined for declines...


Best of luck HOOK.....
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Old Oct 11, 2006, 5:02pm   #12
 
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gugaplex started this thread TOA at $10.70. Break out should be on horizon soon....
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Old Oct 11, 2006, 6:16pm   #13
 
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looks to me if it could go to $10 or there abouts then its a good buy IMO
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Old Oct 11, 2006, 9:52pm   #14
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Originally Posted by gugaplex
Hey, if you can't explain it then stay away from it. Hedge funds may be manipulating the stock which is why something funny is going on. You are better off buying stocks out of favor than over-valued stocks that are destined for declines...


Best of luck HOOK.....
Guga
Thanks for the Luck - Phelps Dodge took off like a ....... 8300 to 9200 by today (under a week- amazing!)
Now all we need is Conoco to get off it's ....... and make me some money.

Hook Shot.
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Old Oct 12, 2006, 2:37pm   #15
 
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gugaplex started this thread I purchased Powerwave Technologies (PWAV) today @ $5.89 because it is a great value/growth investment. The company provides technologies for wireless communications networks like Cingular and Nokia. PWAV will benefit from the coming boom in wireless broad-band speed phones (3G) that the majority of consumers will upgrade to as prices decline. Consumers will increasingly rely on their cell phones and lap-tops for more functionality such as video, internet, etc.

Another great reason for investing in PWAV is the low valuations. The stock is trading at a mere 1.06 x’s Book Value, and has a forward P/E ratio of only 14. PWAV may have lower to go over the short-term, but I would not be surprised if it hit $20 over the next 3-4 years. This makes the stock a low risk/high reward investment.
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