I am back with another update for October. We have had a great year so far and the plan is to continue the run into the end of the year. Urbanomics has enhanced the site to allow for you to track my picks as they are made (thanks to socialpicks). Every now and then I will detail ways for you to identify stocks that work for you...follow the Urbanomic Rules. I will place limit orders in for all of these stocks at the specified prices below. I will also disclose at the end of the post what stocks I was able to buy.
URBANOMICS RULE 1: Find and Stick with a strategy
I have run my most recent screen and I've included my latest picks below with background detail. Screens can vary depending on the investor's risk tolerance and expected return and can focus on Price to Earnings Ratio, Analysts Upgrades, Chart Analysis, Earnings Per Share (EPS) Revisions, and Institutional Ownership. Pick a strategy that works for you, backtest it to see how effective it would be, and stay consistent.
URB October Platinum Picks (In honor of Kanye West and 50 Cent)
I have multiple price points which I will explain in later Urbanomics RULES, but you will see a normal price point, and a SUPERMAN price point. Search the site for a better understanding of the Superman concept.
EMKR BUY @ 10.04
- Emcore is a semiconductor company that has run into a little bit of trouble. Accounting for pesky stock option grants has long been despised in the technology world. Well apparently EMKR didn't get the memo that is was a regulatory mandate to comply with. The great news is EMKR looks to be compliant with the SEC and the NASDAQ in October '07. Shares of Emcore have been on a tear in the last two weeks. It was up 15.8 percent for the week of Sept 21. During that week, EMKR was upgraded by an analyst to "Market Perform". Finally, EMKR is set to report earnings which could be a major catalyst for upward momentum. I will reiterate there is a 'Flight To Technology' within the market and their products support industries that are in high demand (solar panels, wireless, fiber optics). Look to exit is momentum slows down after the earnings release.
Superman Price: EMKR BUY @ 9.59
EMAG BUY @ 8.00
Emageon Inc has recently had an analyst initiate coverage with a "market outperform" rating. The target price is set to $11. EMAG is gaining market share and new product launches should provide more revenue down the road. A recent acquisition is increasing the number of clients and they have seen support levels above the stock's 52 week low. This stock hit a low of 8.09 today, so we're getting close.
Superman Price: EMAG BUY @ 7.42 (52wk low)
TRMS BUY @ 6.95
Trimeris Inc is a company with a good revenue stream, but has been hit hard by poor management. The stock has been falling recently due to both TRMS and Roche pulling the plug on a joint product. With Wall Street believing this company is poorly run, look for what I love to call is a catalyst such as management being pushed out or an outright sale. With a dramatic drop in stock price and market cap...Roche could be a likely buyer. With bad news out there, wait for more declines until we get to our price level. You can take a small bite at 7.11 or lower.
LAMR Buy @ 48.38
Lamar Advertising has been on my watch for awhile and has been mentioned in other posts. I was slow to react to this stock and I've paid the price. The price appreciation has been moving rapidly and I definitely have missed the intial momentum opportunity. LAMR which provides outdoor advertising space, is moving up as an analyst said is raising his forecast due to the deployment of 350 digital billboards next year. That's all we need is more distractions on the road. But guess what...Federal Highway Administration is approving the installation of digital billboards along roadways. This stock is getting away from me so, their can be small blocks bought around 49 and 50.
Superman Price: LAMR BUY @ 47.36 (Good luck I but limit buys in but I don't have my hopes up)
47.36
Disclosure: I bought EMKR today @ 10.04 on 10/4/07. This post was started on 10/02 but completed on 10/04.
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