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Archive for the ‘stocks’ Category

Stocks Selection based on Fundamentals - I am currently refining my trading plan and one of the areas I want to improve is my screening process for fundamentally sound TSX stocks. I want to find a tool that I can run regularly just so become brainless to maintain what I call a "stocks universe" — this is essentially my list of fundamentally strong candidates. I normally do nightly visual inspection of these stocks looking for chart patterns.

The steps in creating and maintaining my "Universe-TSX" watch list because I will have an "Universe-US" will be as follow:

1. Perform a weekly selection of the "Top 100" most fundamentally strong stocks in the TSX.
2. Replace existing list with the results from the previous step

Some of the screening options for TSX stocks are:

• TD Waterhouse stock screener - can be used for both Canada and US. Use the following criteria for TSX stocks:

  *TSX Stocks only
  *Price/ Earnings (Last 12 Months) >= 1.0
  *Return On Equity >= 15.0
  *Profit Margin >= 1.0
  *Operating Margin >= 1.0
  *Current Stock Price ($) >= 8.0
  *Out-Performed Sector - 4 weeks

• Globe and Mail Investor.com screener

For US stocks my current options and preferences are (in order):

• S&P 5 Stars stocks - provided by TD Waterhouse
• Stockscouter - provided by MSN MoneyCentral

Watch Lists Maintenance - These is the next step after the stocks screening. So far I have the following lists:

• Universe-TSX - contains all my tradeable TSX stocks
• Universe-US - for all my tradeable US stocks

Every night I will visually scan all the stocks in these lists and if I see anything good I will put it under close watch by adding it to my "Hot" watch list. This is the list I will watch during the day.

I will also have other watch lists in addition to the ones already mentioned. Here’s my complete list of "watch lists":

Is something cooking at Loblaws or is it the new CEO action? The stock has been fighting back and is nicely positioned to continue its way up.

In no particular order. Click the chart to see it full size.

LAS VEGAS, June 18 /PRNewswire-FirstCall/ — (OTC Bulletin Board: HMSO, Frankfurt: XZA) Hemis Corporation is an international resource company with three exploration properties in Mexico and one in Alaska. Hemis’ Santa Rita property in Mexico has an Earn-In Agreement with Goldcorp Inc. (TSX: G - News; NYSE: GG - News) through Goldcorp’s Mexican subsidiary Glamis Exploration.

Hemis is pleased to announce the first drill results from its El Tigre gold exploration project in eastern Sonora, Mexico. The project is currently undergoing an initial phase of diamond drilling.

The initial drill holes have been on its El Tigre breccia zone where surface sampling had revealed promising gold values over a broad area. Hole ELT-001 was drilled at an angle of -60 degrees. It cut a zone of silicified breccia containing pyrite from the surface to 85 meters. For the interval from 42 to 70 meters the samples averaged 0.758 gr/T of gold. Because the geometry of the El Tigre breccia zone remains poorly constrained, it is uncertain if this 28 meter interval represents a true width.
read more here

Charts from Stockcharts.com.

CCO is up 4.50 since my entry and post , it gapped up two days in a row. Stocks usually give you a hint on their future direction in this case was a volume spike followed by price action.

On the news

Cameco expected to benefit from higher uranium prices, price target raised to $62 at UBS

Higher uranium prices mean more revenue for producers. So with spot prices up roughly 20% in the past six weeks, UBS analyst Brian MacArthur is increasingly bullish on Cameco Corp. (CCO/TSX).

Considered the largest and lowest-cost uranium producer in the western world, Cameco should benefit from declining inventories among utilities, higher operating rates for nuclear reactors, improving fundamentals and increasing interest from investors, Mr. MacArthur said in a research note.

Strength in the Canadian dollar led him to reduce his earnings per share estimate for 2007 to $1.99 from $2.13, while his 2008 forecast is down to $3.50 from $3.68.

However, higher projections for Cameco’s realized uranium price has resulted in a $1 increase to $62 for Mr. MacArthur’s price target. This represents upside of 8% from Thursday’s close of $57.27.

He continues to rate Cameco shares a “buy” but noted that risks associated with troubles at its Cigar Lake mine remain.