The market is getting legs -- 6/18/2010

This week the market got some legs under it. Each weekend I go back to Barchart to get the data for my 3 market yardsticks. This help me clear my head of all the sensational headlines I've read during the past week and just look at the data. I use 3 because although they usually go in tandem they each measure the market in different ways so I think it gives me a more complete feel of what is happening. Let's see what they tell us.

Value Line Index -- Approximately 1700 stocks so it is much broader than the S&P 500 or very narrow Dow 30 -- Up for the week

• The Index was up 2.51% for the week
• The Index is up 1.13% for the month
• The Index has been up 3 weeks and down 2 weeks
• The Index closed Friday above it's 20 & 100 day moving average but below it's 50 DMA

Barchart Market Momentum -- The percentage of stocks closing above their Daily Moving Averages for various time frames -- Above 50% is always good

• Friday over 76.73% closed above the 20 DMA -- only 40.92% closed above the 50 DMA -- 51.44% closed above the 100 DMA
• Last week over 55.12% closed above the 20 DMA -- only 26.90 closed above the 50 DMA -- only 41.13% closed above the 100 DMA
• Last month only 9.26% closed above the 20 DMA -- only 17.09% closed above the 50 DMA -- only 33.95% closed above the 100 DMA

Ratio of stocks hitting new high/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- We've got some bullish signs here

• 1 month ratio of new highs/new lows -- 1367/231 = 5.92
• 3 month ratio of new highs/new lows -- 276/140 = 1.97
• 6 month ratio of new highs/new low -- 237/94 = 2.52

Bonus Info -- Once a month the Conference Board publishes their Leading Economic Index -- The Leading Economic Indicators were positive .4%, Coincident Economic Indicators positive .4% and Lagging Economic Indicators negative only .1%. That's a great sign that the economy is in recovery.

Summary and Investment Strategy -- All three of my yardsticks have positive results and the Conference Boards Economic Indicators show the economy is in recovery. I'll still trim any under performing stocks but I intend to stay fully invested.

Jim Van Meerten is an investor who writes on financial matters on Financial Tides,Barchart Portfolio Blogs, Seeking Alpha, Marketocracy and MSN Top Stocks. Please leave a comment below or email JimVanMeerten@gmail.comDisclosure: No positions in the stocks mentioned at the time of publication

Meaning from data

On Financial Tides I bring you stocks that are worth considering for your portfolio. I'm taking a video course from Professor Michael Starbird of the University of Texas at Austin called Meaning from Data: Statistics made clear. The first thing he emphasises is that raw data is meaningless and has no value until it is properly analyzed. That is what this company does.

Teradata Corporation (TDC) is the world's largest company focused on raising intelligence through data warehousing and enterprise analytics. Teradata is located in more than forty countries. Teradata is a trademark or registered trademark of Teradata Corporation in the United States and other countries. Teradata Corporation employs 5,300 worldwide.

All 13 of Barchart's technical indicators are signaling a buy and the stock hit 5 new highs in the last 5 trading sessions. The stock enjoyed a 6.63% price increase in the past month. The stock trades around 33.63 with a 50 day moving average of 30.92.

Investor sentiment as measured on Motley Fool is strong with CAPS members voting 270 to 17 that the stock will beat the market. The more experienced All Stars have a similar vote of 124 to 5.

Wall Street brokerages like this stock with 7 buy and 2 hold reports published. They feel sales will increase 9.40% this year and 8.10% next year. I like their double digit earrings forecasts of increases in EPS of 12.80% this year, 15.00% next year and a 5 year compounded EPS growth rate of 12.50%,

Last year the total return to stockholders was 73.86%.

The stock should be considered because:

• It has had recent price appreciation and a 100% Barchart technical buy signal
• Strong investor sentiment
• Wall Street buy recommendations based on increases in sales and double digit increases in EPS.

Jim Van Meerten is an investor who writes on financial matters on Financial Tides,Barchart Portfolio Blogs, Seeking Alpha, Marketocracy and MSN Top Stocks. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in the stocks mentioned at the time of publication

Is your portfolio 4G ready?

On Financial Tides I bring you stocks that are worth considering for your portfolio. I've written about this stock before but it's recent price action shows it deserves to be revisited.

Quanta ( PWR ) is a leading provider of specialty electrical contracting and maintenance services primarily related to electric and telecommunications infrastructure in North America. In addition, the Company provides electrical contracting services to the commercial and industrial markets and installs transportation control and lighting systems. Some of Quantas services include the installation, repair and maintenance of electric power transmission and distribution lines and telecommunication and cable television lines, the construction of electric substations, and the erection of cellular telephone.

Double digit sales growth is almost guaranteed as companies strive to meet the new reliability and renewable energy mandates. Congress has given some investment incentives for new infrastructure that is too good to pass up.

Two of their biggest clients, Verizon and AT&T, are in the middle of major upgrades to their networks and PWR will perform most of that work.

The stock hit 5 new highs in the last 5 trading sessions and had a 6.71% price appreciation last month. The stock is trading above it's 20, 50 & 100 day moving averages and has earned a 100% Barchart technical buy signal. The stock trades around 22.94 with a 50 day moving average of 22.66.

Investor sentiment is very high on this stock. On Motley Fool the CAPS members voted that the stock will beat the market by a vote of 539 to 11 and the more experienced All Stars have a similar vote of 161 to 3. Fool notes that of the last 22 articles columnists have written 21 have been positive.

The Wall Street brokerage analysts are very high on this stock with 14 buy and 4 hold recommendations published. Double digit sales increases of 20.40% this year and 12.60% next year are predicted. Earnings forecasts are even better with and increases of 34.30% this year and 29.80% next year. Long term investors will appreciate a forecast of a 12.18% 5 year compounded annual EPS growth rate.

The stock meets my criteria:

• Recent price appreciation and new highs in more than 50% of the recent trading sessions
• 100% Barchart technical buy signal on all 13 of the 13 technical indicators
• High investor sentiment
• Positive articles by the financial press
• Wall Street brokerages recommending this stock to their clients based on double digit forecasts of sales and earnings increases

This stock has something for both short and long term investors.

Jim Van Meerten is an investor who writes on financial matters on Financial Tides,Barchart Portfolio Blogs, Seeking Alpha, Marketocracy and MSN Top Stocks. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in the stocks mentioned at the time of publication

Buffett won't own an airline-- How about you?

US Airways Group, Inc., ( LCC ) through its subsidiaries, provides air transportation for passengers and cargo. It operates approximately 3,000 flights daily to 190 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. As of December 31, 2009, the company operated 349 mainline jets supported by its regional airline subsidiaries and affiliates operating as US Airways Express, which had approximately 236 regional jets and 60 turboprops. US Airways Group operates a hub-and-spoke network with hubs in Charlotte, Philadelphia, and Phoenix; and a focus city at Ronald Reagan Washington National Airport. The company was founded in 1981 and is headquartered in Tempe, Arizona. ( Press release)

The airline is expanding into both Europe, South America and Asia. That makes this stock a risky business but with taking risks sometimes comes rewards. Let's look at the pros and cons and see if you think this stock belongs in your portfolio.

The stock had recent upward price momentum with 14 new highs in the last 20 trading sessions including 5 new highs in the last 5 sessions. Price appreciation has been 48.38% in the last month earning the stock a Barchart 96% technical buy score with 12 of 13 indicators signaling a buy. The stock trades around 10.64 with a 50 day moving average of 7.68.

Overall investor sentiment as measured on Motley Fool is mixed but still slightly positive with CAPS members voting that the stock will beat the market by a vote of 436 to 340 with the more experienced All Stars equally split 125 to 84. Fool does note that of the financial columnists they follow the articles have been positive 9 to 1.

Wall Street is high on the stock with 4 buy and 3 hold reports published based on an estimated increase in sales of 13.20% this year and 4.60% next year. EPS growth is expected to be 153.60% this year, plus 35.30% next year. Long range the 5 year compounded EPS growth rate is only expected to be 3.00%.

I note that even Value Line is reporting that this is a timely stock and looks for increases sales , earnings and price.

The pros are:

• Recent upward price momentum with consistent new highs better than 50% of the recent trading sessions
• Positive though split investor sentiment
• Wall Street recommendations based on estimates of increases in sales and earnings

The cons are:

• Oil prices can always tank profits
• Airlines are recently having some labor strikes
• Iceland's volcanoes can shut down European travel in an instant

This is a highly risky short term price momentum play and not a long range appreciation stock. Note the 5 year compounded EPS growth of only 3%. Place moving stop losses to protect your gains if you decide to take a flyer on an airline stock.

Jim Van Meerten is an investor who writes on financial matters on Financial Tides,Barchart Portfolio Blogs, Seeking Alpha, Marketocracy and MSN Top Stocks. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in the stocks mentioned at the time of publication

Boston Beer - SAM

Who doesn't know Sam Adams Beer? My wife and I have been to several of Morton's beer tastings sponsored by Sam Adams and I was surprised to learn that they have over 30 seasonal beers available. The Boston Beer Company, Inc. ( SAM ) produces beer, malt beverages, and cider products at Company-owned breweries and under contract. Their beer products are primarily positioned in the `Better Beer` category of the beer industry, which includes craft beers and most imports sold at premium prices.

The stock has been trading above and below 100K shares a day so it qualifies for the more speculative portfolio because of it's lower trading volume.

The stock has a 96% Barchart technical buy signal and hit 11 new highs in the last 20 trading sessions including 5 highs in the last 5 sessions. The stock has enjoyed an 18.31% price appreciation in the last month and trades around 71.95 with a 50 day moving average of 60.37.

Investor sentiment is high that the stock will beat the market by a vote of 1001 to 49 with the more experienced investors voting 263 to 6.

Wall Street likes this stock too with 2 buy and 2 hold recommendations published. They expect sales to increase 8.10% this year and 8.30% next year. Earnings per share are estimated to have increases of 30.40% this year, 9.50% next year and maintain a 5 year compounded EPS growth of 13.70%.

Boston Beer ( SAM ) is being added to the Barchart Van Meerten Speculative portfolio for the following reasons:

• Barchart technical buy signal of 96% with new highs in better than 50% of the recent trading sessions
• Very high and positive investor sentiment
• Wall Street recommendations based on increased sales and earnings

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On Financial Tides I bring you stocks that are worth considering for your portfolio.

Jim Van Meerten is an investor who writes on financial matters on Financial Tides,
Barchart Portfolio Blogs, Seeking Alpha, Marketocracy and MSN Top Stocks. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in the stocks mentioned at the time of publication

Growth in medical waste

Stericycle, Inc. ( SRCL ) is a multi-regional integrated company employing proprietary technology to provide environmentally responsible management of regulated medical waste for the health care industry. The Company is the second largest provider of regulated medical waste management services in the United States.

One of the product lines that has helped the bottom line is recall management. Recalls will be a fact of life and many pharma companies would rather hire an outside contractor to perform this function.

The company has a very aggressive growth through acquisition program and completed 6 new acquisitions in the past year.

The stock came to my attention by hitting 10 new highs in the last 20 trading sessions and 4 in the last 5. New highs in this soft market are hard to come by. In the last month the stock has enjoyed a 12.84% price appreciation and trades around 63.79 with a 50 day moving average of 57.61. The stock has a 100% Barchart technical buy rating.

Investors have noticed this stock and over on Motley Fool the CAPS members vote that the stock will outperform the market by a vote of 245 to 15 with the more experienced All Stars agreeing 67 to 8. Of the Wall Street columnists Fool follows it is noted that all 3 articles have been positive.

Wall Street brokerage analysts are high on the stock with 7 buy and 2 hold recommendations published. They feel the sales will increase 16.20% this year and 8.10% next year. Double digit earnings per share increases of 16.70% this year, 13.58% next year and a 5 year compounded EPS growth rate of 16.44% deserves your attention.

This stock has great prospects:

• 2nd largest medical waste management company
• Aggressive growth by acquisition strategy
• Hitting new highs in better than 50% of the recent trading sessions
• Very high investor sentiment
• Wall Street buy recommendations based on increases in sales and double digit EPS growth.

Jim Van Meerten is an investor who writes on financial matters on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in SRCL at the time of publication

Weekly Market Barometer W/E 6/11

This week really wasn't so bad. The market recovered nicely and is just about back to slightly above neutral. Let's look at our 3 yardsticks and see where we are.

Value Line Index -- contains 1700 stocks so it's broader than the narrower S&P 500 or very narrow Dow 30

• Ended the week up 2.32% but that's still down 1.34% for the month
• Barchart still rates the Index a 62% sell with 9 sell, 3 hold and only 1 buy signals
• The Index closed Friday below it's 20, 50 & 100 Day moving averages

Barchart Market Momentum -- The percentage of stocks closing above their Daily Moving Averages for various time frames -- Above 50% is always good

• 55.50% closed above their 20 DMA on Friday -- Only 27.05% above their 50 DMA -- Only 41.39% closed above their 100 DMA
• Last week only 23.74% closed above their 20 DMA -- Only 20.40% closed above their 50 DMA -- Only 33.28% closed above their 100 DAM
• Last month only 40.89% closed above their 20 DMA -- 51.41% closed above their 50 DMA -- 69.30% closed above their 100 DMA

Ratio of stocks hitting new highs/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, less than .99 bearish -- Slightly bullish this week

• Ratio of 1 month new highs/new lows -- 395/252 = 1.57
• Ratio of 3 month new highs/new lows -- 181/173 = 1.05
• Ratio of 6 month new highs/new lows -- 135/114 = 1.45

Summary and Investment Strategy -- The week showed slight improvement in all 3 yardsticks. If the market holds through noon Monday I may add some new stocks to my portfolios. Of course that won't stop me from trimming off any stocks that keep having negative performance issues.

Jim Van Meerten is an investors who writes on financial matters on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com.