Tuesday, September 14, 2010

Internet Capital Group - ICGE

I added the Internet Capital Group (ICGE) to the Barchart Van Meerten Speculative portfolio this morning. ICGE is an Internet holding company actively engaged in business-to-business e-commerce -- B2B e-commerce -- through a network of Partner Companies. It provides operational assistance, capital support, expertise, and a strategic network of business relationships intended to maximize the long-term market potential of business-to-business e-commerce Partner Companies.

The capital structure is innovative. They own a major investing interests in 13 different B2B e-commerce companies then help them through both funding and management assistance. A little bit venture capital - a little bit holding company. I like this.

Wall Street brokerages like it to with 4 Strong Buy recommendations distributed to their clients based on projections of increases in sales of 24.30% this year and 9.00% next year. The consensus is that earnings will increase 116.70% this year and continue at an annual rate of 15.00% for the next 5 years.

There is very good price momentum at the present time. Barchart has an 80% buy signal. The stock is trading above its 20, 50 & 100 day moving averages and recently traded at 9.79 well above its 50 day moving average of 8.56. The stock hit 14 new highs in the last 20 trading sessions and increased by 23.13% in the last month. The 14 day Relative Strength Index is at 68.52% and rising.

The general investing public as measured on Motley Fool has faith in the stock and voted 49 to 12 that the stock will beat the market with their All Stars in agreement 13 to 1.

The stock meet my 3 criteria for investment:
  1. Recent positive and consistent upward price momentum
  2. Wall Street buy recommendations based on estimated increases in sales and earnings
  3. A positive general investor sentiment

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog..

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