Monday, August 31, 2009

Family Dollar and Dollar Tree

Family Dollar (FDO) and Dollar Tree (DLTR) are both excellent picks considering the state of the economy. Everyone is looking to save a buck here and there so sales at discount stores like these are likely to be headed upward. Family Dollar (FDO) is paying out a .54 annual dividend, and is quoted just above $30. While Dollar Tree (DLTR) is closer to $50, with no dividends. Both would be a good medium pick, not too conservative, and not too risky.

Why Market Phases Are Important For Investors

Are you into stocks? Do you trade the stock market? Are you an investor or a trader? In either case, you will find this article very helpful. You will also find the market phases to be a good indicator for stock, and perhaps you will be able to profit from it.

It is important for an investor or a trader to understand the life cycle of a stock. If you trade stocks, you know that stocks go through peaks and valleys. It is the nature of the stock market. We believe that most stocks go through these cycles. Through an algorithm developed by, we have classified the life cycle of a stock into 6 distinct phases. These market phases are as follows:

•Recovery phase
•Accumulation phase
•Bullish phase
•Warning phase
•Distribution phase
•Bearish phase
The above market phases describe the stage of the stock within the cycle. For instance, as the stock initially rises in the price, it goes through recovery phase. These are buyers that are first to recognize the value. Similar to early adopter to technology, these investors recognize the value of the stock early on.

Accumulation Phase generally follows the recovery phase. More buyers are entering the market. The bullish phase, which follows the accumulation phase, the buyers have the control of the market, and are anxious to push the prices up.

Eventually, the Bullish phase ends. In most cases, the market will give you a warning before it goes into distribution phase. The warning phase is the early signs that sellers are beginning to enter the market. A fight is taking place between the buyers and sellers.

During the Distribution Phase more sellers are entering the market, and are trying to drive the prices down. The Bearish phase is when the sellers have the control of the market, and the prices are going down.

In most instances, the phases are not as orderly as one might prefer. For example, a stock may go from accumulation phase back to Recovery Phase few times, before going forward to the Bullish Phase. Nevertheless, it is important to comprehend the phases and trade accordingly.

The phases are important because it gives traders and investors common language to understand and describe the price behavior of a particular stock. Understanding this behavior is critical to trader's road towards profiting from price movement in any market.

For more information about market phases visit the website, It provides analysis and recommendations for over 4000 stocks for FREE. has developed this and other indicators for trading stocks. Manish Shah has a B.S. in Engineer from Illinois Institute of Technology and a Masters in Business Administration from Washington University. He has been trading markets for over 10 years.

Source: Ask stock guru

Thursday, August 27, 2009

HSTM Heathstream Inc.

Improving financial statements over the last couple of years and buy ratings from most analysts make HSTM one of my newest hot stock picks. Healthstream is an internet based information source for the healthcare industry. It is now around the $4 mark, I look for this one to at least double within the next year.

AZZ Incorporated

AZZ is another solid, long term pick. They are a financially sound company that is growing rapidly. AZZ has made an acquisition of another company each year for the last three years. This year they added Pilot Galvanizing and Bristol Galvanizing to the company. Last year it was AAA Galvanizing, which included 6 different plants throughout the midwest and west. Two or Three years ago they purchased Witt Galvanizing, which included 3 plants in the northern midwest. AZZ had a 2 for 1 split about two years ago and the price continued to rise. The profit numbers just keep increasing, without adding any substantial debts. This is a great pick for the long term.

General Electric

I like GE because it is a solid addition to your portfolio. It has been around a long time, and it is at a really valuable price right now. The dividends are higher than most, and if you want a stock with potential but not as much volitility, GE is an excellent pick. I would expect GE to be around the $18 to $20 mark in about a year.

Sirius-XM Radio

I bought and sold SIRI a few years ago, when it was around the $5 mark. And once again when I saw it at .20 cents, I bought it up. So far this has shown to be an excellent pick, I think by late 2010 we will see Sirius at the breaking even point or even slightly positive numbers. Right now I am sitting at well over a 100% gain. When it comes back to somewhere around the $4 to $5 range, I will have made a nice little chunk of change. Then all I will have to worry about is that whole capital gains tax thing.


Ford has been one of my top picks since it dropped dramatically to under $2 a share. I still see great potential for Ford. They will most likely turn a profit for fiscal 2010, and I would not be surprised to see the price soar to $15 a share next summer.