Was Diamond Man & Tech's stock manipulated?

I'm not sure about you but I smell something very fishy about the recent price action in Diamond Management & Technology (DTPI) and its acquisition by PriceWaterhouse at $12.50 on August 24th.

You might remember we carried Diamond in the Barchart Van Meerten Speculative portfolio for some time but sold it from the portfolio on August 8th at 9.73 after some really crazy and unexplained price action. The stock was in a trading range around 11 a share when after a pretty normal earnings call on August 4th the stock took an unexplained nose dive from around 11 all the way down to 8.33 in just an hour.

Although the stock recovered in the next few days it continued to trade in the 9.29 to 10.29 range but kept trending downward settling in around 9.50. The stock normally traded between 100K and 200K shares a day. I never could find any reason for the stock to drop and there was no negative press to cause it to keep trending lower.

All of a sudden out of nowhere PriceWaterhouse offers an all cash deal at $12.50 which was an almost 32% premium of the 9.50 price and in a matter of minutes 19+ million shares are traded.

Normal earnings calls do not cause a stock to drop 25% in an hour and then settle lower each day until acquired with a hefty premium.

A lot of people lost money by selling out between August 4th and the buyout announcement on August 24th. If you were one of them you have every right to file an SEC complaint that you feel the stock was manipulated.

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

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

Weekly Market Barometer -- W/E 8/20

This week's barometer will be a little early and based on the data I took off Barchart at noon on Friday. Not a great week for the market despite all the glowing promises I heard about the economy. That's why each week I step back from the headlines and use my 3 market yard sticks to figure our what really happened.

Value Line Index - Contains 1700 stocks so its broader than the S&P 500 or very narrow Dow 30 -- Things didn't happen

• Price down .98% for the 4 1/2 day period
• Price down 2.32% for the last 20 sessions
• 9 of Barchart's 13 technical indicators signal sell for a 64% sell signal
• Relative Strength Index is only 39.22% and falling
• At Friday noon the Index was at 2265.19, that's below its 50 day moving average of 2345.33

Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks trading above their Daily Moving Averages for various periods --50% and above is good -- Nothing good here either

• Friday at noon only 28.18% traded above their 20 DMA, only 45.34% traded above their 50 DMA, only 39.99% traded above their 100 DMA
• Last week only 34.95 traded above their 20 DMA, over 50.84% traded above their 50 DMA, only 41.43% traded above their 100 DMA
• Last month over 84.74% traded above their 20 DMA, over 68.44% traded above their 50 DMA, only 49.47% traded above their 100 DMA

Ratio of stocks hitting new highs/new lows for various time frames -- 1.0+ bullish, 1.0 neutral, under .99 bearish -- This indicator is very bearish

• 1 month new high/new low ratio -- 68/1032 = .07
• 3 month new high/new low ratio -- 38/483 = .08
• 6 month new high/new low ratio -- 25/62 = .40

Summary and Investment Strategy -- Market action was negative. I'll keep trimming but not adding positions until I see some technical improvement in the market.

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

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

The market is scary W/E 8/13

This week as the talking heads kept telling us how strong the economy was recovering the market went down almost every session. Time to step back, ignore the hype and go to Barchart for just the facts. We will still use our 3 standard yard sticks because we know that no single indicator works 100% of the time.

Value Line Index -- Contains 1700 unweighted stocks so I think it better represents the market than the narrow S&P 500 or very narrow Dow 30 -- Down for both the week and the last month

• Down by 4.66% for the week
• Down by 3.11% for the last month
• 14 day Relative Strength Index is at 39.85% and falling
• Barchart only has 1 buy on its 13 technical indicators for a 40% short term sell and a 64% overall sell signal
• Index closed Friday below its 20, 50 and 100 day moving averages at 2287.87 which is 2.4% below its 50 day moving average of 2343.52

Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various time periods -- above 50% is good --Worse than last week

• Friday only 35.61% closed above their 20 DMA, over 51.13% closed above their 50 DMA, only 41.75% closed above their 100 DMA
• Last week over 73.82% closed above their 20 DMA, over 73.31% closed above their 50 DMA and over 57.46% closed above their 100 DMA
• Last month only 46.61% closed above their 20 DMA, only 40.30% closed above their 50 DMA , only 33.55% closed above their 100 DMA

Ratio of stocks hitting new highs/new lows for various time periods -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- This is the most bearish I've seen in quite a while.

• 1 month ratio of new highs/new lows -- 138/776 = .18
• 3 month ratio of new highs/new lows -- 57/423 = .13
• 6 month ratio of new highs/new lows -- 30/320 = .09

Summary and strategy for the next week -- The market was definitely in a net downward trend last week. During the next week I will be trimming stocks that are tanking faster than the market and try not to loss more than 10% on any individual position. I will begin to accumulate cash until the market starts to recover.

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Financial Tides blogs has moved

Thanks to all who continue to follow me. The content on Financial Tides can now be found in different places. Please click on the links below and you can still follow all my rants and recommendations:


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Thanks for all your support

Jim Van Meerten

Heyward fiddles while the Gulf burns

I made a promise to myself that I would not write any more articles about BP but they just keep on digging themselves deeper into a hole of stupidity. My local paper had 3 headline photos this weekend. The first showing Tony Hayward of BP infamy yachting, the second comparing the environmental impact of the oil spill to the Dust Bowl Disaster and the third of the massive fires in the Gulf to burn off the oil. Flip in one page and there is another picture of the hourly workers in jump suits with hand tools cleaning the beaches.

Immediately, into my mind popped the comparison of how Nero fiddled while Rome was in flames. The next image was of Marie Antoinette being told " The people have no bread" and her reply of "Then let them eat cake!" Sounds very much like " The little people are losing their income" and Tony's reply of "Well I'd like my life back too." I guess maybe the French were smarter than we are, we all remember how they got even with her.

Now today instead of taking care of business in the Gulf and getting this 21 inch pipe plugged he has decided to go to Russia and suck up to them before they shut down BP's operations there.


Bernie Madoff only caused his investors to lose $18 billion but since the April 19th close of 59.48 the stock has tumbled to 30.83; a loss of almost $89 billion to BP investors, many of whom are retirees and pension funds dependent on the dividend for income.


What do I want from BP? How about just trying to make me believe they care. How about a photo of all the Executive Officers and the Board of Directors in jump suits with rakes and shovels cleaning the beaches?


Better yet how about a finding that BP's actions are no longer Gross Negligence but have risen to a finding of Criminal Negligence.


Who is benefiting? The short sellers and hedge funds are making a killing. The day the well is plugged those that jump in will make another quick fortune. Too bad they won't share with the innocent stockholders who put their belief in a stable dividend to pay bills in their golden years or the innocent fisherman, waitresses and maids who depended on the beauty of the Gulf to make a living.


Hey Tony why don't you tell them to eat cake!

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 BP at the time of publication

Riding on the Gold train

Newmont Mining Corp. (NEM ) is engaged in the production of gold and copper, the exploration for gold and the acquisition and development of gold and copper properties worldwide. The company produces gold from mines in Nevada and California, and, outside of the United States, from operations in Peru, Indonesia, Mexico and Uzbekistan. New mines coming online in the next few years in Peru and Ghana should add to sales in the coming years.

Presently production levels this year are expected to be 5.5 million ounces of gold and 380 million pounds of copper.

The stock had a recent price appreciation of 9.45% last month and hit 5 new highs in the last 5 trading sessions. Barchart is giving buy signals on all 13 of its technical indicators. The stock trades around 59.68 with a 50 day moving average of 54.67.

Investor sentiment is high on Motley Fool with the CAPS members voting that the stock will beat the market by a vote of 899 to 84 and the more experienced All Stars are in agreement 311 to 22. Of the columnists Fool follows, articles have been positive 13 to 2.

Wall Street analysts are also high on this stock with 10 buy and 10 hold recommendations published. They feel sales will increase 20.50% this year and 3.50% next year with earnings increases forcasted to be an increase of 25.80% this year, 10.80% next year and continue at a 5 year compounded EPS growth rate of 20.15%.

Normally mining stocks are triple plays where you can have 3 ways to make money: 1- price appreciation of the underlying commodity, 2 - earnings from the mining operations and 3 - nice dividends.

In the case of NEM this years earnings are expected to be about $4.85 per share & cash flow expected to be $3.50 per share. That means the cash dividend of $.40 looks pretty secure now and for several years in the future but at today's share price of 59.68 the dividend gives you only a .67% yield so income investors should look elsewhere for income.

Why should you buy?

• Price appreciation of the underlying gold and copper reserves
• Profits from the mining operations
• 100% Barchart technical buy signal
• Very high investor sentiment
• Wall Street buy recommendations based on increases of sales and earnings.

Before you buy this stock please look at an article I've written previously entitled "Should You Own Gold or the Gold Producer?"

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

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