Stocks to watch: TI, Halliburton, Citi et al

Among the companies whose shares are expected to see active trade in Monday’s session are Texas Instruments Inc., Halliburton Co. and Citigroup Inc.

Texas Instruments Inc. TXN +0.81%  is expected to report first-quarter earnings of 58 cents a share, according to analysts surveyed by FactSet Research.

Halliburton Co. HAL +1.47%  is forecast to post earnings of 59 cents a share in the first quarter.

Citigroup Inc. C -0.23%  is estimated to report a profit of 9 cents a share in the first quarter.

Eli Lilly & Co. LLY +0.73%  is expected to report earnings of $1.17 a share in the first quarter.

Gannett Co. GCI +2.28%  is projected to post a first-quarter profit of 42 cents a share.

Keycorp KEY +0.80%  is estimated to report a profit of 14 cents a share in the first quarter.

TD Ameritrade Holding Corp. AMTD +2.03%  is forecast to post earnings of 28 cents a share in the fiscal second quarter.

Amylin Pharmaceuticals Inc. / AMLN +16.25%  is projected to post a first-quarter loss of 23 cents a share.

M&T Bank Corp. MTB +0.18%  is expected to report first-quarter earnings of $1.41 a share.

Which stocks should you own now?  Check out the latest Stocknod Hotsheet picks.

StockNod Stock Alert – ION

Here is an example of the StockNod Stock Alerts in action on a stock called ION Geophysical Corporation (IO).  Here is a link to the stock analysis chart for ION Geophysical

Stock Alerts

From the beginning of 2009 to present, you can see the frequency of alerts fired on IO.  The StockNod algorithm looks for ideal entry and exit points based on price and volume.  Over this time period, and investment of $10K turned into over $60K!

Profile of IO

ION Geophysical Corporation provides geophysical technology, services, and solutions for the oil and gas industry worldwide. It operates in four segments: Land Imaging Systems, Marine Imaging Systems, Data Management Solutions, and ION Solutions. The Land Imaging Systems segment offers cable-based, cable less, and radio-controlled seismic data acquisition systems, digital and analog geophone sensors, vibrator trucks, and source controllers for detonator and vibrator energy sources. The Marine Imaging Systems segment provides towed streamer and redeployable ocean bottom cable seismic data acquisition systems and shipboard recorders, streamer positioning and control systems, and energy sources comprising air guns and air gun controllers. The Data Management Solutions segment offers software systems and services, including Orca, a software product for towed streamer navigation and integrated data management applications; SPECTRA software system for seismic survey operations; GATOR software system for ocean bottom cable and transition zone operations; consulting services for planning, designing, and supervising survey operations; and post-survey analysis tools consisting of SPRINT navigation processing and quality control software for marine geophysical surveys, and REFLEX software for navigation and seismic data analysis. The ION Solutions segment offers seismic data processing and imaging services for marine and land environments, and a seismic data library, as well as integrated seismic solution services to manage the seismic process, such as survey planning and design, project oversight of data acquisition operations, advanced signal processing, final image rendering, and geophysical and reservoir analysis. The company was formerly known as Input/Output, Inc. and changed its name to ION Geophysical Corporation in 2007. ION Geophysical Corporation was founded in 1968 and is headquartered in Houston, Texas.

Excellent low P/E value buys

Quality companies with low price-to-book value ratios (P/BV) have outperformed companies with higher valuations for the past three-, ?ve- and 10-year periods.

Our search for undervalued companies to with price to book value ratios found three stocks in tech-related sectors: Kyocera (KYO), PC Connection (PCCC), and Thermo Fisher Scienti?c (TMO).

To ?nd the best stocks with low price-to-book value ratios, we used several additional criteria to make our selections.

We narrowed our list of companies by requiring: Value Line Financial Strength ratings of A or better, dividend payments increasing over time, low P/E ratios and good earnings prospects for the next 12-month and ?ve-year periods.

The company produces a vast array of products including semiconductor and electronic
components used in cell phones, routers, cameras, printers, automotive electronics and solar power-generating systems.

Kyocera’s materials, components and ? nished products are used in virtually all ? elds of industry.

After weak sales and earnings results in 2008 and 2009, we believe EPS will soar 63% during the next 12 months. KYO shares are undervalued at 11.9 times forward 12-month EPS. KYO is low risk.

PC Connection sells personal computers and related peripherals, software and networking products directly to business, education, government and consumers located primarily in the U.S.

The company sells, services and supports 130,000 brand-name products from its headquarters in New Hampshire and distribution center in Ohio.

EPS tripled during the past three-month and 12-month periods and will likely increase another 21% during the next 12 months. Sales increased 32% during the three months ended 9/30/10, led by a 54% increase in sales to large corporate accounts.

PCCC shares are undervalued at 10.3 times forward 12-month EPS and 0.90 times book value. PCCC is medium risk.

Thermo Fisher Scienti?c was created in 2006 when Thermo Scienti? c and Fisher Scienti?c merged. The combined company is a leading provider of life science and laboratory analytical instruments, equipment, reagents and supplies.

Thermo Fisher also provides software and services for medical and scienti?c research laboratories.

Management is focusing on further expanding operations in China. Sales increased 6% and EPS rose 15% during the three months ended 9/30/10.

EPS will likely advance 10% or more during the next 12 months. At 13.6 times forward 12-month EPS, TMO shares are inexpensive. TMO is very low risk.

American Tower (AMT) – Hot Stock Pick

American Tower (AMT) operates wireless communications towers, broadcast communications towers and distributed antenna system networks; the company is involved in with 20,000 towers in the U.S. and 7,000 towers in Mexico, Brazil and India. Technically, the stock has broken out from a three-month, cup-and-handle base and is now within range to make a 10-year.

Its portfolio also includes approximately 200 in-building DAS networks that it operate in malls, casinos and other in-building applications in the United States and Mexico. The company operates in two business segments: rental and management, and network development services.

AMT’s 12-month performance chart shows the stock appreciating 58% versus a 24% gain for the S&P 500 index. So, although AMT has a beta of just 0.83 it has easily outperformed the S&P recently. The stock’s long-term chart shows the stock soaring to a peak of 55.50 back in 2000. The stock then fell sharply during the bear market of 2001 and 2002. I

In previous years (2008 and 2009), it held up fairly well. Now the stock is on the move and trending higher again.  

American Tower (AMT) stock price chart shows the stock rallying strongly in recent weeks from around 38 to 46. The stock has generated a lot of upside momentum.

The stock’s momentum indicator is strongly bullish. Most impressive is that the accumulation – distribution line is trending higher. It did not give much ground when the stock was heading lower in April and May. That shows that the selling was not that strong. Thus, the strong recent rebound.

This year, analysts forecast AMT’s earnings will surge 48% to 87 cents a share from 59 cents a year ago. The stock sells with a price-earnings ratio of 51. That is high. So, one must be watchful of the stock. I would get a piece of AMT now as it doesn’t look like this momentum is slowing anytime soon. More on American Tower Stock News.

Please visit momentum stock picks for other strong long trended bullish stock picks.

Healthcare Stock Picks to Buy Now

Now that health care reform has become law, what will it mean for investors in health care-related companies? One company that is likely to be among the biggest beneficiaries is Teva Pharmaceuticals (NASDAQ: TEVA stock price).

With 32 million Americans gaining health insurance coverage , the reform package is certain to accelerate the growing use of generic drugs, a trend rooted both in demographics and in the push to cut costs.

Generic drugs already benefit from our aging population, who take more drugs by the year. The additional numbers of insured Americans will mean a surge in people able to afford medications (and to see the doctors that prescribe them).

Meanwhile, several widely prescribed medicines will be coming off patent in coming years, including Pfizer’s Lipitor and Bristol Myers Squibb’s Plavix, further expanding the range of available generic drugs.

Leading the generics field is Teva Pharmaceuticals, a long time holding in our Growth Portfolio. Capitalized at $59 billion and selling some 400 or so different medications, this Israeli company is the world’s largest manufacturer and seller of generic drugs, putting it squarely in the sweet spot of health care trends.

Teva’s revenues in 2009 were $13.9 billion, while profits topped $3 billion. Management was projecting revenues of $31 billion by 2015— representing compounded growth above 14 percent a year—and net income of $6.8 billion.

These prospects were exciting enough, but now Teva’s future has grown brighter still as a result of its March acquisition of Ratiopharm, Germany’s second-biggest generic drug maker.

The $5 billion purchase puts the company in prime position in Germany—which with $8.8 billion a year in generic drug sales is the world’s second-largest market—and in Europe as a whole.

Before the acquisition, Europe generated less than one-quarter of Teva’s total sales, but the continent will become increasingly important as a source of growth.

In addition, the acquisition doubles Teva’s sales in Canada. It also should lead to significant synergies, with management looking for it to boost earnings starting in the third quarter after the deal’s closing (expected by yearend).

Teva has been on a 6 week downtrend but look for bounce and upswing in coming months. Teva last traded at 56.80 and currently strong buy from Stocknod neural network. More TEVA stock news.

ETF Stock watchlist

‘Cautiously bullish’ is the theme du jour. The bears seem to have little ammunition and sell programs have had scant success in turning positive days negative.

Another bad sign for the bears is that they can’t use weak volume to their advantage, but it is that weak volume that keeps us being too enthusiastic about the recent move higher. We certainly do like the leadership that the tech sector is exerting.

Most of tech’s marquee names are high-quality companies that are flush with cash and the sector is home to many a sterling balance sheet.

On the other hand, the leadership we’re seeing out of big financials is curious given that the government is telling major banks to hold off on dividend increases and share repurchases until the economy improves.

Financials’ resurgence has been helpful to a couple our holdings, so we’re not going to complain too much. We found some interesting data released earlier this week by the Investment Company Institute that said that fund managers are low on cash.

They have roughly $172 billion to pour into stocks and while that may sound like a lot of money, and it is, in stock market parlance it isn’t all that much.

The good news is that ICI said late this week that more than $36 billion has flowed out of money market funds recently and that means retail investors are starting to put fresh cash to work.

This is exactly what the bulls need to keep this rally going. Meanwhille, here are three ETFs on our Stocknod buy list:

SPDR Morgan Stanley Technology ETF (NYSE: MTK)

The Nasdaq continues its leadership of U.S. equities and that is benefiting MTK. Apple continues to be one of the strongest U.S. stocks, Amazon and eBay are firming up and some of the blue chip tech names are starting to look strong.

Oddly enough regarding tech, we’re about 10 years removed from when the Nasdaq crossed 5,000 and while that lofty level may never be seen again, at least not anytime soon, the tech sector is experiencing a renaissance of sorts.

Most big-name tech companies are flush with mounds of free cash and they sport impressive balance sheets.

MTK is not the most popular or the most heavily traded tech ETF, and for one reason or another, you won’t find a lot of experts recommending MTK. That’s fine, but it cannot be ignored that MTK is up 3% in the past week, outperforming both the Nasdaq and the S&P 500.

In the past month, MTK is up 8%, the same as the Nasdaq and better than the S&P 500 and we are now positive on the trade. MTK is just two cents away from a new 52-week high as we write this issue.

Vanguard Dividend Appreciation ETF (NYSE: VIG) and Vanguard Value ETF (NYSE: VTV)

The past week or so has been a good time to be involved with financials and that means good things for VIG and VTV, both of which devote decent portions of their respective weights to the financial services sector. As of this writing, S&P 500 financials are on a 10-day winning streak, their best run in 12 years.

VTV’s slight weighting to Goldman Sachs has been a boon for the ETF and what is most impressive about the recent performance of both VIG and VTV is that banks have been told by federal regulators to hold off on dividend increases and share repurchases until the economy really improves.

We expect the bank dividend cycle to pick up steam in the second half of this year, but in the meantime, VIG and VTV represent excellent ways for prudent investors to get some exposure to financials. VIG and VTV are trading a combined eight cents off their 52-week highs.

Devon Energy is Ripe

Devon Energy (NYSE: DVN) is refocusing itself. Non-core holdings are being shed, and the proceeds are being used to accelerate growth of the company’s premier North American assets.

Devon grew up as a company in the natural gas shale plays of the Midwest. Through superior technology, a focus on cost discipline, and a consistent track record, Devon has become one of the largest independent exploration and production companies in the United States. Couple their holdings with the resurgence of tertiary domestic recovery and strong leasehold position and you have a strong steady well that should pay royalties for next 2-5 years.

As the firm has grown, so too has its asset base – encompassing emerging natural gas fields all over the world.

In an all too often rare move, Devon’s management has realized that the company currently has an overabundance of opportunities. To better position itself, Devon has decided to compete where it is most competitive – North America. As a result, all of the firm’s international and Gulf of Mexico production fields will be sold.

As Devon narrows its focus to North America, the fundamentals of the firm continue to improve. Over the last three years, Devon has been able to grow North American production at 9% per year, while international production has stagnated. Read more Devon stock news and recent announcements.

Besides allowing Devon to refocus on its most profitable fields, the asset sales are expected to raise $4.5 – $7.5 billion in cash.

With these funds, management plans to take the very positive approach of: 1) paying down debt to strengthen the company’s already healthy balance sheet and 2) ramping-up production to further leverage the growth potential of the firm’s existing domestic acreage.

As the fundamental prospects for Devon continue to improve, its valuation remains attractive. In fact, compared to what Exxon Mobil recently agreed to pay for XTO Energy (one of Devon’s main competitors), this stock looks downright cheap.

With a more focused outlook, a strengthening balance sheet, and great valuation, we continue to view Devon as an untapped opportunity with years of growth ahead.

Look for Devon to be a boomer over the next couple weeks, months and a solid buy hold investment.    Current open position and strong buy status on DVN. Currently trading around $66 and showing strong uptrend. Look for Devon stock price to bust out +75 in next 2-3 monhts.

To start receiving Free Stock Alerts on Devon Energy, create a free Stocknod account and follow this one via alerts emails.

Hot Stocks: Signature Exploration (SXLP.OB)

We hit an absolute homerun on Brigham Exploration (BEXP) in 2009 (bought at $2.15, current $14.00) and we are looking to better that performance with one of my #1 oil and gas pick for 2010. Signature Exploration News (SXLP.OB) is getting my full attention for very good reasons.

I caught the attention of the Stocknod community with BEXP last year and I believe my latest oil and gas pick, Signature Exploration and Production is going to trounce them all.

In the 1970′s the major producers virtually abandoned the good ‘ole U.S.A.’s oil and gas fields for cheaper and easier to find foreign sources of supply. While they were scouring the globe an entire new breed of small oil and gas companies quietly took over our domestic oil and gas industry.

But now the majors are back and looking to re-purchase the same properties they previously abandoned. That’s why Exxon recently paid $31 billion for XTO Energy–because it’s is cheaper to buy existing properties than develop new projects.

The majors are coming back to the U.S because there’s a lot of oil and gas still here. In fact, 2/3 of the oil and gas in the U.S. fields has been left behind. There’s 337 billion barrels worth trillions of dollars ready to be recovered.

You see, by some estimates, 90% of the land-based wells in the U.S. are old “stripper” wells with huge recoverable reserves. Today’s prices and cost-effective recovery technologies makes them valuable targets once again.

That’s great news for aggressive exploration companies like Signature that are rapidly acquiring and developing promising oil and gas properties at prices below the cost of developing new fields in remote and inhospitable regions of the world.

I spend a lot of time researching for undervalued companies and I believe Signature Exploration and Production is grossly undervalued. Here’s why…

Signature is acquiring oil and gas leases and working interests in Texas, Kansas, New Mexico and Illinois. They have interests in more than 2,603 acres with aggressive plans to drill new wells and ramp up production.

Tiny Signature Exploration and Production has less than 10 million shares outstanding, so its market capitalization is about $6.5 million. It is being valued in the market at less than the average price of four of XTO’s wells.

Although Signature is just getting started with their drilling program I believe they have excellent prospects to bring in several new wells into production this year, which could easily double, or triple the company’s value.

Tertiary recovery techniques will only continue to improve and the cliche of “too many straws in this soda pop” is about to get brand new straws that will find reserves in fields once considered depleted. Look for domestic production to increase across the board with Signature Exploration SXLP stock prices leading the charge in 2010.

Gold riskier than you think?

A speculative economy and cloudy outlook in the financial markets has sent investors flocking to gold in 2009. Before you take the plunge with what’s left of your savings and investments, take a closer look at what’s making this metal shine.

Recent email inquiry from a Stocknod member “With the recent upheaval in the economy and forecasts of a “second bubble”, I want to shift more of our investments in our 401k into precious metals (gold/silver). My financial advisor scoffs at this thought — like I’m a weirdo “gold/precious metal bug,” and I’m not. I just want to protect our 401K after the disastrous hit it took last year. What are some funds I could buy?”

First let me say that investment managers shouldn’t be scoffing at anyone these days. And you don’t have to be a “weirdo gold bug” to benefit from buying precious metals. My concern with Gold as posted by several of my blogs is that investors have been piling into gold for good reason, and there’s nothing wrong with the logic behind the case for buying. Gold has traditionally done very well in times of financial upheaval because of its perceived as a “safe investment” that can do no wrong.

The price of gold typically rises when the value of US Dollar falls. Similar to a lot of commodities. As the Federal Reserve and U.S. government have flooded the world with paper money to try to revive the global economy, gold bulls argue that it’s only a matter of time before inflation returns. Surging prices for goods also push gold prices higher.

All of these conditions have helped spark big demand for gold, which creates additional upward pressure on prices. But keep in mind that gold prices can fall sharply with little notice. So while it may provide a useful hedge, it’s not a great place to stash your entire nest egg. Especially with prices already through the roof.

Investors who did so in the late 1970s learned the hard way why gold can be so risky. As inflation raged, gold prices doubled in the ten months that ended in October 1979. Governments appeared powerless to stop the corrosive price spiral. Interest rates remained high because anyone lending paper money worried about its rapid loss of value. By January, 1980, gold prices had doubled again to hit $850 an ounce.

The Fed’s unprecedented moves to keep short-term interest rates at zero by flooding the system with cash is certainly cause for concern.

There’s little evidence of inflation in the economy today; the large excess capacity in housing, manufacturing capacity and labor markets are creating a big damper on prices. But if central bankers wait too long to mop up all that money, it could spark a fresh outbreak of inflation.

If you’re worried about inflation, there may be better ways to hedge. The price of metals like copper will likely rise if the global economy picks up and demand increases, especially in the developing world. (The same is true for oil.) For individual investors, there are a number of funds or ETFs that offer you a diversified basket of commodities.  Take a look at Pro Shares Ultra Gold EFF.

Metlife Stock

MetLife Inc (MET) MetLife shares rose 2.7 percent, or 98 cents, to $36.31 in afternoon trading on the New York Stock Exchange. After a rock 3 month rocky decline, current MET Life news points towards another big bounce.

MetLife Chief Executive Robert Henrikson said at an annual investor conference that the company sees revenue growing by up to 8 percent in 2010 as the company lures customers away from weaker rivals.

Life insurers were particularly susceptible to the upheaval in credit markets, which led to large losses on the sector’s holding of trillions of dollars in investments. But as markets have recovered, MetLife and its next biggest rival, Prudential Financial Inc (PRU.N), have emerged stronger than some peers, helping each to win more business. Latest Prudential Financial Stock Prices.

MetLife expects improved investment profit and lower expenses will also help its bottom line in 2010. The company said it met its target of $400 million in cost savings a year ahead of schedule and raised its forecast for savings in 2010 to $600 million.

Henrikson said the company was “wide open to really accretive” acquisitions, or deals that could significantly bolster growth. He declined to speak about specific deals.

MetLife’s (Met) stock price has more than tripled since hitting a 52-week low of $11.37 in March as investor fears about the capital position of U.S. life insurers eased. Get stock alerts on Met Life.

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