Steady Return Stock - CNB

Steady Bank The Steady Return Stock on the spotlight today is Colonial Bancgroup Inc. (CNB), the Montgomery, AL based bank holding company for Colonial Bank, which operates 301 braches in United States. The stock has been doing well for the past three years, up more than 100%. In addition the most recent quarter report also showed great sign as the bank's first quarter earning soared 35% to $65 million compared to $48 million of previous year. The steady growth in stock price and financials makes this bank a steady return stock with the following characteristics:

Technical
The 52 weeks chart shows this is a steady return stocks according to the followings:

• first of all for the past 52 weeks both 50 day and 200 day moving average have been rising steadily. This is the first sign of a steady return stock.
• secondly both 50 day and 200 day moving average have been going up at similar angle for the past 52 weeks. Although the angle of 50 day moving have become a bit flat last October and this February, it has went up along with 200 day moving average again since late February. This is another sign of a steady return stock.
• thirdly the stock for the past 52 weeks has generally stayed relatively close to the 50 day moving average. Although the stock dip near 200 day moving average last October and rose too quickly around December, most other time the stock stay within a dollar or 5% of the 50 day moving average. This is third sign showing the stock is a steady one. Buying the stock at anytime should guarantee a steady return for the long run.

Financial
The financial statement also shows characteristics of steady return stock as the company's revenue has been in steady growth in revenue for the past few years from $908 million in 2003 to $1 billion in 2004 and then $1.37 billion in 2005. In addition the net income has also been in steady growth from $149.9 million in 2003 and $173 million in 2004 to $228.5 million in 2005.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(regional bank): 4
2. Technical: 5
3. Financial: 5
Overall Rating: A+

Steady Return Stock - AUY

Safe Gold The Steady Return Stock on the spotlight today is Yamana Gold Inc. (AUY), the Toronto, Canada based gold mining company for mines in Brazil and central America. The stock has been up stronger since the beginning of this year on surging gold and other precious metals prices. In addition we think the stock is a safe one to own and have less chance to go down according to the following analysis:

Technical
From the 52 weeks chart, you should see that the stock is a steady return stock according to the following characterics:

• first of all for the past 52 weeks both 50 day and 200 day moving average have been rising steadily. In addition both moving average have been going even stronger since the beginning of this year. This is the first sign of a steady return stock.
• secondly both 50 day and 200 day moving average have been going up at similar angle for the past 52 weeks. Although the angle of 50 day moving have become a bit steeper since January, the 200 day moving average have followed as well. This is another sign of a steady return stock.
• thirdly the stock for the past 52 weeks has stayed relatively close to the 50 day moving average. This is another sign showing the stock is a steady one as any aggresive surge too far away from the moving average will result in steep profit taking.

Financial
The financial statement also shows characteristics of steady return stock as the company has been getting steady growth in revenue for the past few years from 19 million in 2003 to $32 million in 2004 and then 46 million in 2005. However despite growth in revenue the company actually got surging net loss in 2005. As a result the company has too sell stocks and borrow money to maintain positive cash flow.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(Gold): 5
2. Technical: 5
3. Financial: 3.5
Overall Rating: A

Steady Return Stock - BHP

The Steady Return Stock we spotted today is BHP Billiton Ltd. (BHP), the Melbourne, Australia based metal mining company for iron ore, copper, nickel, manganese, diamonds, silver, titanium, aluminum and uranium. In addition the company also involves in oil and natural gas exploration in Australia, United Kingdom, United States, Algeria, Trinidad and Tobago, and Pakistan. As price of oil, gas and metals have been surging to new highs, owning a natural resource exploration company like BHP should probably be a safe investment. In addition according to the stock's 52 weeks chart, it shows this is also a steady stock according to the following characterics:

• first of all both 50 day and 200 day moving average have been rising steadily for the past 52 weeks. Although the 50 day moving average seemed a bit flat from November of 2005 till January of 2006, after then both 50 day and 200 day moving averages have been going up stronger.
• secondly both 50 day and 200 day moving average have been going up at similar angle for the past 52 weeks. This is another sign of a safe growing stock.
• thirdly the stock for the past 52 weeks stay relatively close to the 50 day moving average, within the range of plus or minus 15%. Although recently the stock has been more moving more aggresively and reached almost 20% above 50 day moving average, the pull back for the past week brought the stock back to a stable and steady state. Now that stock is back near 50 day moving average this should be a good time to buy the stock.

The financial statement also looks healthy as the company has been getting steady revenue growth, about $7 billion each year, for the past few years. Another big plus is that the company generated four times more net income of $4.7 billion dollars in 2005 compared to $1 billion net income in the previous year. This company overall has a very strong and healty financial statement.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(Natural Resource): 5
2. Technical: 5
3. Financial: 5
Overall Rating: A++

Steady Return Stock - ABB

The Steady Return Stock we spotted today is ABB Ltd. (ABB), the Zurich, Switzerland based power transmission and power plant automation service company. Today the stock was upgraded by JP Morgan, the second analyst upgrade for the year. And for the year the stock has went doubled from $6.29 at beginning of last May to almost $13 today. Moreover if you take a detail look at the one year chart the stock shows the following characteristics of a steady rising and low risk stock:

• first of all both 50 day and 200 day moving average have been rising steadily for the past 52 weeks. Since the beginning of this year both 50 day and 200 day moving averages seem to be going up stronger.
• secondly both 50 day and 200 day moving average have been going up at similar angle. This is another safe sign for the stock.
• the stock for the past 52 weeks stay relatively close to the 50 day moving average. Despite weakness last July and last October, the stock stay up closely to 50 day moving average. The recent correction is bringing the stock back near 50 day moving average again and should be a good time to buy the stock.

The financial statement also looks healthy as the company has been getting revenue growth for the past few years. In addition the net loss has reduced significantly from $779 million in 2004 to only $35 million in 2005. Since the company has $3.6 billion in cash it should be able to cover the net loss easily as the company also use the money to buy back stocks and reducing loans.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. News Buzz: 5
2. Market Potential(Energy Equipment): 4
3. Technical: 5
4. Financial: 5
Overall Rating: A+

Steady Return Stock - RTK

In the previous article, we introduced the investment strategy of finding the stock with low risk and steady return. Today let's take a look another one.

The Steady Return Stock we spotted today is Rentech, Inc. (RTK), the Denver, Colorado based alternative fuel technology company. The stock seems to be catching investors' attention again especially after Jim Crammer was bullish on the company on his Mad Money show saying the company's coal to oil technology is the right solution at the time for alternative energy. In addition the one year chart shows why we think the stock will continue to do well with limited risk:

• first of all both 50 day and 200 day moving average have been going up since September of 2005. Although 50 day moving average have weakened a bit in April, it seems to be going up again slightly.
• secondly both 50 day and 200 day moving average are going at similar angle since last October. Although 50 day moving average turned south a bit in April, it is back in the same angle as 200 day moving average again.
• although the stock has been up and down around 50 day moving average this year it still stayed relatve close to the 50 day moving average about plus or minus $1 away from the moving average. Now as the stock has rose again from 50 day moving average this is probably a good time to buy.

Since both 50 day and 200 day moving averages are going up at the same angel around mid October of last year, the stock has gained about 100% from $2.5 per share to $5.07 per share today.

The financial statement is a little bit weak as the company has generated less revenue and but steeper net loss for 2005. In order to maintain a healthy cash level the company sold stock worth 29 million for 2005.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential (Alternative Energy): 5
2. Technical: 4
3. Financial: 2
Overall Rating: B

A Safe Investment Strategy - Part II

In the previous article, we mentioned the first investment strategy we implemented. Although the strategy gives hit like GIGM, it also results in bust like SIRI for Satellite Radio stocks.

This time we try a different direction by analyzing the technical trend of a stock by picking the stock before they began to fly high. The High Return Stock investment strategy, combining three bull technical signals gives hit like FNSR with return of 130% in five months and PMTR with return of 80% in five months. The pick is also not limited to larger market cap stock like Continental Airlines(CAL) which has gained 15%. However this strategy still involves risk as some stocks like VTSS dropped on unexpected events.

Some investors belive to get exponential returns you want to get the penny stock - the stock trading around $1 per share before the big buyers noticed. If you are lucky enough you may find big blockbuster hit like NTRI, going from less than a dollar per share in late 2003 to $68 today or NTES, going from less than a dollor in April of 2002 to as much as $97 in March before the 4:1 split which brings the stock back to $23.3 today or $93.2 of pre-split price. However investing the penny stock involves a lot more risk as most of the time you end up in bankrupt company like CURE which is now trading only at only 5 cents per share as its symbol has changed to CUREQ.PK indicating the company is bankrupted. To minimize the risk of investing in penny stock, the Penny Stock investment strategy uses a rating system to rate a stock based on market potential, news buzz, technical trend, insider trading and financials. With the rating in place we were able to find stock like DVW which have gained 80% in 4 months.

This time what we would like to find is a stock with less risk but still growing. So instead of going for high return this time we go for stock with steady moderate return and financially stable. These should be the stock where you buy and can just forget about it for a lont time. These kind of stocks are actually easy to spot by simply looking at the stock chart. A perfect example of this kind of stock is Titanium Metals Corp. (TIE), the Dallas, Texas based company making titanium melted and mill products. Let's take a look at the one year chart with 50 day and 200 day moving averages to see why we pick the stock.

The chart shows the following characteristics of a steady return stocks:

• both 50 day and 200 day moving average have to go up.
• both 50 day and 200 day moving average have to be rising at similar angle.
• the stock price should stay close to 50 day moving average. So if the stock rises to quickly like in early December or recently, you may want to wait for the stock to dropped a little bit before you buy the stock.

This steady growing stock for the past 52 weeks have split twice in September of last year and February of this year, each a 2 for 1 split. And the stock has just split again today. If you bought the stock last May at $42 per share, after counting in the split which is equivalent to $300 per share today, you will be getting a return of 618% in just one year. Even better looking at the five year chart and you will see the stock hasn't dropped below 200 day moving average since mid 2003. Wow. What a stock with steady but high growth.

In addition looking at the financial statement and you will see that the company has been getting continuous revenue and net income growth for the past few years. So just relax, buy the stock and take a vacation.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential (Metal - Titanium): 5
2. Technical: 5
3. Financial: 5
Overall Rating: A+

A Safe Investment Strategy

What's Your Strategy? As a non-professional investor, I began my investment with "word-of-mouth" - that is buy whatever my friends or colleagues talk about. However after few years of unforgetable lessons, from dot com bust to Enron, I realized that I need to invest with some strategies. Well unfortunately, I am not a pro like those who got paid about a million dollars per year to implement sophisticated investment model. Neither I am like those who can always get the first hand information before it goes public.

I am just like you who gets the information only from the newspaper and finance website. Nothing more. So I really couldn't cash in on big news such as robust earning report. Because by the time I noticed the stock it's already on the top performer list gaining already 50%. Despite that I still do want to implement some investment strategy based on the information available. Because if the strategy works that means you, not just the top Wall Street analyst, can also implement strategies based on the information available.

For the past few months I began to implement some strategies and see how they work. The very first one I tried is the buzz word investing where stocks were picked based on popular topics which I believe are going to or are attracting money. This strategy, although doesn't involve any technical or financial analysis, somehow works as some successful sectors such as Taiwan related stocks have gained 50% so far and Brazil related stocks have gained 30% since coverage initiated. Other successful sectors include GPS stocks(+20%), India stocks(+20%), Russia stocks(+17%) and Hydrogen Cell stocks(11%). Remember this is not just individual stock performance but the return of a group of stocks so you should really compare them with mutual fund or indices. And speaking of individual stock there is GIGM which has hit a homerun with 280% return in five month. Well, not bad.