Stay Tuned

I don't have a lot write about today. But one stock that I believe could continue to be a turnaround story is ADAPTEC (NASDAQ: ADPT). My screens have produced this stock again and I believe it should see gains from its current level. The stock was up tremendously today up .22 from it price of 3.22 and closed around 3.44. My price point is 3.38 which continues to be around that consistent mark where I have repeatedly written about acquiring this stock at these levels(adding the stock by Dollar Cost Averaging Down). I believe that Steel Partners, a private equity firm is (steely) locked into this company and finally directing the ship. By their proxy battle a few months ago I think it laid the groundwork and it was very visible by the 3 boards seats that were gained by the firm. With bullishness being seen in the stock going into the annual shareholder meeting, the perfect backdrop with be positive investor rhetoric from the CEO discussing:

1. continued improvements in its restructuring plan

2. new products are well received

3. company is exploring strategic alternatives

4. maybe even a change in management

One thing I have to go back to in to being patient with my investments...let, them play out because a number of these are turnaround stories that need time a positive catalysts to push them forward. If I continue being impatient I will miss out on the additional opportunities in stocks like RAD, EMKR, and others. EMKR was recommended at 10 and its superman price of 9.59...and today is sits at roughly 14...hmmm only if I were a little more patient.

All I need is a little bit...

Yeah this line was coined by my boy 50 Cent for awhile. And word on da street...wall street that is...was that Fiddy was on Cavuto, a financial show probably showing off his investment muscle. Now I haven't seen the clip of his on the show but can he have time to be making the returns that we are over here at Urbanomics. Maybe after his stake in Vitamin Water got bought out, but we bring the platinum picks and he brings the platinum hits.

Today I wanted to write about Emcore (NASDAQ:EMKR), if you have been patient with us...and btw you haven't had to wait long, we hit our target already. Yes boys and girls, EMKR was up around 8% on no news that I am aware of. This volatile stock, was a short term pick of mine and for anyone following I am selling EMKR here. This is a quick 10% gain and I will look to revisit my friend EMKR when it declines back to a price around $10. I would Superman this stock back at the $9.15 level and be a strong accumulator around 9.79.

Lastly I spoke to soon on Adaptec (NASDAQ:ADPT) by about a day or two. I was getting some weird stock chart readings on ADPT and it didn't jump like I had expected. But here is the good news, ADPT reported earnings and beat estimates by .05c. That led the stock higher and if you read into the earning release by the CEO, you will also notice what I call is a subtle hint at good things to come for us. Attached is the comments, provided by Market Wire:

"While our top line results were above the company's expectations, we continue to face difficult market conditions," explained S. "Sundi" Sundaresh, president and CEO of Adaptec. "Despite these challenges, the company has made significant progress during the quarter in several key areas: our restructuring plan announced last quarter is on track to fully realize the expected savings by the end of the fiscal year; our Data Protection and Storage Solutions groups have each released new products and the early indicators of customer reaction are positive; and we reached an agreement with Steel Partners, and together, I expect, we will pursue a course designed to maximize value for all of our stockholders."

Urbanomic readers, I know one thing and when companies align with Private Equity firms to MAXIMIZE VALUE...that usually means great things for stockholders because they lead to buyouts, stock buyback programs, splitting up the company, or anything that makes them money. Hope you jumped all aboard ADPT, b/c again you could have had ADPT at 3.40 today which is the price that I have REPEATEDLY said is a great level to continue to add shares.

Enjoy the quick hit gain with EMKR and lets watch ADPT open higher tomorrow.

Disclosures: I sold EMKR today

URB Platinum Picks ~ October '07

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.