IBD 100 Weekly: Two Ways to Profit
Principles of the Stock Market

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Have You Seen This?

Have You Seen This?

IBD 100 VIEW.  Usually I report to you the ‘new names’ in the weekly IBD 100 list of leading companies, those companies outperforming most other stocks in price and with good fundamentals and earnings and revenues.  With the idea that there is a ‘first mover’ advantage in becoming cognizant of and familiar with these new companies before the crowd does, say before Cramer on MAD MONEY recommends them.  A first mover’s advantage especially for those of you who will make the extra effort to go look them up and find out what’s driving them higher.  Lot’s of time one can get on to the newest, latest fashion or hottest thing by doing some homework.  I believe that extra effort can really prove illuminating and profitable.  So, although I’m not recommending running out and buying a package of them in this bear market summer, below are this week and last week’s new names, some totally new and some rehashes, rejoining the IBD 100 list after being squeezed off it.

IBD 100 NEW NAMES (IBD dated Monday, July 21st, 22008)


IBD                                                                         Mkt         Industry

Rank      Symbol   Name                      Price      Cap         Rank      Business Line

18            EZPW    EZCORP                16.78       694m       52            Pawn shops

43            CFX        Colfax Corp           27.26       1120m     3              Diversified manufacturing; fluids, valves

63            ATVID   Activison Blizzard    36.82       24,219m  57            Entertainment software (the old Activision)

68            SYUT     Synutra Intl           30.57       1650m     164          Vitamins & nutrition – CHINA

79            MANT   ManTech Intl        50.91       1774m     30            Enterprise software to US government

85            AIMC     Altra Holdings      16.66       440m       3              Machinery; motion control products

93            BKE        The Buckle            48.96       1500m     23            Retail; youth casual apparel

100          GIFI        Gulf Island             43.16       614m       7              Oil field equipment


But today with the stock market mired in a bear market although maybe with it’s recent 2nd steep leg down or decline just ended, let me add a second or different approach as well.  That of capitalizing on IBD’s own offered up insights.  IBD agrees we’re in a market correction but the weekend paper asks:  “Which groups and stocks will emerge as the new leaders?”  And then offers up a partial answer highlighting a few stocks to put on our watch list as possible new leaders and describes their current chart patterns; below:



                                                                                                                IBD Chart Review

5              MA         MasterCard, Inc.     267.90     34,830m  52            Could be building right side of base

8              CF           CF Industries        156.73     8835m     5              Four weeks into potential base -on-base

28            CLHB     Clean Harbors       75.91       1771m     28            In 4th week of possible flat base

42            CMED    China Medical      46.04       1261m     70            Now shaping handle to Double Bottom

55            SDA       Sadia                      22.55       5134m     51            Quickly shaping right side of base

59            SXE        Stanley Inc.           31.93       731m       59            Shaping handle to base started in January


Schwartz View:  My plan, and what I’d recommend to you all, is to follow chart developments on the above possible new leadership candidates.  This should give us a “2-fer.”  First, some possible profits if these stocks do become market leaders as the first stocks up after any market decline usually perform very well.  And second, some more study and thus understanding into how IBD analyzes bases.  In that regard, I would recommend any & all books which William O’Neil, founder of IBD, has written or co-written.  The market student can learn O’Neil’s CANSLIM strategy & much about chart reading too.  And at this point, make sure you get his HOW TO MAKE MONEY SELLING STOCKS SHORT (2005) with Gil Morales.


Posted 07-22-2008 8:22 AM by Richard Schwartz