Steady Return Stock - ABI

The inflation worry sank the major indices and many stocks during the month of May and June. However some stocks during the stormy months refused to go down and actually stayed on its course of going up. Some of these stocks posses the characteristic of a steady return stock. One of these stock we found is Applera Corp-Applied Biosystems Group(ABI), which developers medical research instrument for the study of DNA. For the past 52 weeks the stock has risen from $20 per share last June to $31.65 today, gaining 50% in a month. During the market sell-off in May and June, the stock still went up a little bit. The followings will show why the stock was able to stay up during the downturn and could still go up steady in the future:

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

• first of all since the beginning of last October both 50 day and 200 day moving average have been rising steadily. This is the first sign of a steady return stock.
• secondly since January both 50 day and 200 day moving average have been staying at similar angle and have staying pretty close together. Recently both moving averages are getting even more closer showing 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. Although the stock went up a little bit last December it came back near 50 day moving average again in January. This confirms this is a steady stock from the technical point of view.

Financial
The financial statement also shows steady increase in revenue from 2003 to 2005 from $1.7 billion to $1.84 billion, and even in the first three quarters of 2006. In addition net income has increased a bit from 2003 to 2005, from $102 million to $159.8 million. Although the company has sold some stocks in the most recent quarter, it still bought back far more shares for the year.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(medical research equipment): 4
2. Technical: 4.5
3. Financial: 5
Overall Rating: A+

Steady Return Stock - NITE

Steady Investment Bank The Finding a stock going up in a good market is probably not very difficult. Probably even monkeys can pick a winning stock. However in the stormy market like we are having since the last month, even the pros will have a hard time to pull off a decent return. And for the non pro like us, a safer bet would be to get a Steady Return Stock - a stock which won't give you too much trouble and sleepless night. The Steady Return Stock we spot today is Knight Capital Group Inc. (NITE), the Jersey City, New Jersey based asset management service company. Despite the resent sell-off in many stocks, the investment company holds its stock price pretty well, trading near $16 per share. The following shows why the stock has been able to hold the gain and why it will still been doing ok:

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

• first of all since the beginning of February both 50 day and 200 day moving average have been rising steadily. This is the first sign of a steady return stock.
• secondly since January both 50 day and 200 day moving average have been staying at similar angle and have staying pretty close together. This means no roller coaster like ride for the stock and 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. Although the stock shoot up quite a bit in mid April it came back down again in mid May gain to near 50 day moving average. This shows now is a safe time to buy the stock.

Financial
The financial statement shows steady increase in revenue from 2004 to 2005, yet still a little big less than 2003. In addition net income has increased a bit from 2003 to 2005. The surge in net income of 2004 is not counted as it is due to additional 100 million from discontinued operations. One big plus from the cash flow statement shows the company actuallh has been buying back shares for the past few years.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(investment): 4
2. Technical: 4.5
3. Financial: 4.5
Overall Rating: A