Economics 101

The best economic advice that you will ever receive - maybe.

Friday, January 19, 2007

Growth Picks

Well, I have been doing some research and I continue to reccommend MWRK. But I also reccommend a new stock, Rudolph Technologies (RTEC). Check out the growth rate for yourself, http://finance.yahoo.com/q/ae?s=RTEC. Just amazing! If I were an intelligent investor, I'd buy RTEC before it has its earnings on Feb. 7. I also have one more pick for next year that you should watch through 07, Thermogenesis Corp. (KOOL). These guys have a 525% growth rate for 08. I also have two other picks that Jim Cramer actually owns for his charitable trust, and surprisingly they're not at 52-week highs. His 2 picks are RIG and GSF. Both are great growth stocks, and I give you the seal of approval to BUY,BUY, BUY both now. In fact you should, because their earnings are not too far away. I wonder who saw CCI today. Crown Castle (CCI) went up $1.75 (5.08%) after the company announced that it would buy back over 17 million shares. These guys did a serious buy-back and everybody jumped in on the news. The funny thing is, I was watching them trade up only 1%-2% in the first few mintues of the trading session. Had I bought the stock, I could have made 3% or 4%. But I made a mistake, much like all humans. I'll give you another growth stock, Gray Television (GTN), and these guys have a growth rate of 480%. That's very, very good, but after this quarter you have to SELL, SELL, SELL!!! I can't guarentee that you will make a lot of money, because it is $1 away from it's 52 week high of $9, but then again, its 52-week low is $5 and change. I have another growth stock much like GTN, TVL. TVL is like GTN in the sense that it is also near a 52-week high but has a very high growth rate of 163%. The next growth stock I'm going to give you is Playboy Enterprises (PLA). We all know about their disgusting business, but let's focus on its stock. This quarter their growth rate is negative 14.3%. However, next quarter it is supposed to grow 400% and this year it is supposed to grow 500%. Next year it is supposed to grow 512.5%. I will have to do some more research on PLA, but I think that it is probably best of breed in terms of growth. I'm not done with growth stocks yet. This quarter INXI is supposed to grow 125% and this year it is supposed to grow 136.7%. As if that weren't enough, it is also supposed to grow 318.2% next year. I also see a growth player in the fashion industry cache (CACH). These guys are a player for next quarter. They are supposed to grow 63.3% next quarter. I think that besdies PLCE, CACH is probably the second-best growth player in the fashion industry. It is very hard to evaluate the fashion industry because technically speaking, there is only one true sector for it, Apparel Stores. But I guess Textile - Apparel Clothing and Textile- Apparel Footwear and Accessories do count as well. But fashion isn't like the automotive industry where you can have a bunch of different sectors: one sector is based on the people who make the engines, another is for transmissions, another is for tires, and there is one for car companies themselves. An even better comparison is tech. Tech can be divided into many thing like semi-conductor companies and computer companies. I also think Fossil (FOSL) is a pretty decent growth buy. For this quarter, their growth estimates show that they will most likely grow 48.4% and next quarter their growth rate will be at 35.7%. I'll give you another big fashion name: Guess (GES). They have a very good quarterly revenue growth of 31.3% and a gross margin of 42.82% which is even better than Gap. However, the common problem occurs. They are not too far from their 52-week high, which is why I don't know if they're company's growth will translate into $$$. I also continue to reccommend Under Armour (UA) because I think that it can still go up, especially if it has a growth rate of 212.5% for the current quarter and a growth rate of 122.2% for the year. I have a lot of faith in Under Armour because it has not had an earnings disapointment. Since December 8, 2006, insider traders of UA have bought 1,200,779. Let alone on December 8, 2006, 1,200,00 of those shares were purchased and this was only by 2 insiders. I think UA's earnings estimates are way too low and easy to beat. But we run into the 52 week high problem. I'm looking at Quicksilver (ZQK) now and I notice that next quarter's growth rate is 166.7%. And this stock, I think, is not a bad buy at the moment. Although its earnings is in March, pretty far off, they have easily beatable estimates. Now that I'm looking at growth plays, I think Boeing (BA) should definetly be considered one. They have a growth rate of 69% for this quarter and have consistenly beaten earnings estimates. I don't think that their is a better growth play for the next quarter than US Airways Group (LCC). They not only have a current growth rate of 146.5% and for the next quarter they have a growth rate of 1,260%. So you might even want to buy it now, because with earnings on Jan. 30, this stock is not going to dissapoint. If that weren't enough to make you buy this stock, (which gives me every right to ask "What are you smoking?") than its 219.5% quarterly revenue growth and 282% growth rate for this year will. I think that this year UAL Corp. (UAUA) may do well, with its 91.2% growth rate for this year, but will do even bettre next year with a growth rate of 1165.1%.

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