Take advantage when a stock dips....

Today, NVAX has dropped quite considerably. Take this as an opportunity to buy some cheaper shares. It's only a matter of time before it blasts past 2 dollars and holds it there. SFP on the other hand has been a little slower at going up, but it seems a little more sane at the moment...so keep holding. I got a couple of great Long-Term Investments as well as a intermediate trade coming up. I'll try to post later tonight! =)

I sure hope everyone got some coal in their stockings. lol

What did I tell ya? I mentioned these coal companies yesterday. What did you think? Did you believe that because they have had sucha run-up, that they would be down from here on out? Wrong! High coal prices are going to stick around for a little. I hope you guys loaded up on CNX, BTU.. MEE and all that good stuff! Good Luck!


- Nick M H.

'OLE NAT KING COAL.....

STOCK HIGHLIGHTS

I'm sure you never heard of this singer, but I sure do hope you've heard of Coal. Right now, Coal has to be one of the hottest commodities. I'm serious, check out any coal companies stock price over the last few months and you will see what I'm talking about. Just like Oil prices, Coal prices have also started to accelerate. With this growth and acceleration, coal companies have followed this growth and momentum. So with that In mind, I want to introduce a couple of coal companies that I like and have also traded. In addition I want to also show you some machinery companies that make the tools necessary for the coal companies to excavate their mines. The List is, CNX, FDG, BTU, ACI, MEE, ARLP and JOYG. Coal companies belong to the Energy-Other industry group. All of the mentioned coal stocks trade on the NYSE, with the exception of ARLP which trades on the NASDAQ

Hands down, Consol Energy (CNX) is my favorite coal company.

Consol Energy (CNX) 1yr chart



CNX is one of the largest coal mining and processing company's in the U.S. CNX has about 4.5 billion tons of proven and probably reserves in the north and central Appalachian region. CNX produces 60 million tons of coal a year. CNX has customers in the steel and electric utility industries. CNX also has a natural gas exploration and production subsidiary which it is spinning off as a separate company (stupid move, nonetheless).

Looking at the chart we can see the huge recent run-up that CNX has had. The dip in late August was the perfect buying opportunity for anyone who wanted to buy shares under 65 bucks.

Approach: I think a buy here is ok, maybe it will dip to 63-65 again before shooting back up. In my opinion 65 and under is a great buy. EDIT: This was written a few days ago. Since the recommendation, CNX has gone to 69/68

Time Frame: I like CNX as a Mid- To-Long-Term Investment.

Target: 1st target is 70.58 . Once it hits 70 and can maintain it, I believe $75 is around the corner.


Coal Stock No. 2 is Peabody Energy (BTU). BTU is a long-term coal stock winner that had a nice run-up last year before the split. Even now after the split, the stock has run up again to 70
bucks. This goes to show you, how hot Coal really is, right now. BTU has approximately over 30 mines in the U.S. and produced 225 million tons of coal, annually. In addition, it has about 9 billion tons in reserve (wow!).


Peabody Energy (BTU) 1yr chart


BTU is currently testing the 70 dollar range. If it can hold, it will be trading higher.

Approach: I do not believe BTU is a good Trading stock, unless you carefully buy on Technically sound dips. Lets say it dips a few dollars down in the course of a few days and it is showing strength slightly above the 50day MA- that would be the signal of a good trade, as you can buy on the dip and sell on the bullish reversal for a few dollars gain. FOR NOW, I would treat any profit-taking dips as an opportunity to build a long-term investment position.


Time Frame: BTU is a sound investment that can be implemented in intermediate to mid-term investment and even a long-term investment.


Target: 1st Target is 76.00 2nd Target is 83.00



Another Coal Stock following close behind CNX and BTU, is Arch Coal (ACI). ACI processes and mines coal in the western U.S. and the central Appalachian region. ACI produces 125 million tons of coal a year. ACI has over 27 mines in its stable. In addition, the company has near 4 billion in tons of coal in proven and probable reserves.


ACI (ARCH COAL) 1yr Chart

Approach: I would wait for a small dip in Arch Coal's price before buying. Most coal stocks are at their 52wk highs today (8/30/05). So wait for a small dip, possible to low 62 or high 61 and then buy.

Time Frame: ACI is of course a Long-Term investment that is meant to give investors maximum capital appreciation over a long period of time. Nimble traders can probably make a quick buck or two off the dips but it is not worth the hassle because of its high stock price.


Target: 1st target is 66.50. 2nd Target is 69.56.


I'm not done yet! Next Coal stock up to bat is... Massey Energy (MEE). This is yet another coal play that I really like and one that I am also playing right now as well. I was fortunate enough to sneak in at high 44/low 45's. The stock is now currently trading at 50.23 (8/30/05). MEE seems like a smaller version of the CNX's, and BTU's. It has about 20 mining complexes in the Appalachian region (which encompasses West Virginia, Virginia and Kentucky). MEE produces 40 million tons of coal annually. MEE owns about 2.3 billion tons of proven and probable reserves. Massey Energy is also considering repurchasing its shares in 2006. That is a bullish sign because a company wouldn't want to buy its own stock unless it knew it was profitable in the future.


Massey Energy (MEE) 1yr Chart

Approach: My opinion is to wait for a dip. You can buy it low 50's-that's fine. But for the really patient, there may be an opportunity to buy in the mid to high 48/49 region. In any case, it has support at the 48 dollar range.

Time Frame: Again, this is without a doubt, a long-term investment. It should be, especially if you want to feel the effects of the share buy back in 2006. I see great upside potential for MEE in the future.

Target: My first target is 54.32 . 2nd target is 59.89 .




Last but not least are my 2 favorite high priced coal stocks. Although they may seem expensive due to the high stock price, they are still inexpensive. What coal stocks am I talking about? I'm talking about Alliance Resource Partners (ARLP) and Fording Canadian Coal trust (FDG). I want to first start off with ARLP. ARLP is at 89 bucks today (8/30/05). ARLP churns out only 20 million tons of coal annually. Yet, ARLP has over 440 million in reserves. Yeah, I know it doesn't sound as much as the other companies. That's because ARLP is still growing and has room to grow. Maybe that's why Joseph W Craft III owns 44% of the stock.

Alliance Resource Partners LP (ARLP) 6 month Chart


Approach: I like ARLP at 89. It is still off its 52 wk high, but the chart shows that as long as coal continues to act healthy, it should retest its 52wk high easily. I would buy at 89 and possibly 88 if it dips a little more

Time Frame: This is a Long-Term investment.

Target: The first target is 97.01. After that I would have to say, breaking the 100 dollar barrier would be a beautiful thing. Still, it needs to move to the 95 dollar level.


The Last high priced coal stock that I want you too look at is, Fording Canadian Coal trust (FDG). I believe that this is a must own stock. It is both technically and fundamentally a marvel. Still, with a 122.55 price tag, not too many people are buying in, which is a shame. As Canada's premier coal mining and processing company, it actually owns stakes in other coal companies, mostly those native to Canada, but also our state side buddy, CNX. And guess what?! It is still actually really CHEAP! Yes, believe it or not, the company is still cheap. Do not let the price fool you. The good news is that the stock will soon complete a 2 for 1 stock split on 9/6/05. The last buy-in date to take advantage of the split is 9/2/05. My recommendation is to buy 50-100 shares and let them double with the split. If you don't carry around that kind of bank, well then, wait for the split to buy at a lower price.

Fording Canadian Coal Trust (FDG) 6 month chart

Approach: You have two approaches. You can buy NOW at the 120 level and take advantage of the split. Or you can wait after the split and buy at the split adjusted price. The choice is yours! Personally I would buy now, though.

Time Frame: You know this is a Long-Term investment, duh!

Price Target: Hard to Assess at the moment, as I do not know what price it will debut after the split.



Okay! I'm done highlighting the coal companies. I have one more company to leave you with. No, it is not a coal company. It is...Joy Global (JOYG) in the Nasdaq market. JOYG is in the Machinary- Construction/Mining industry. So why did I just throw in JOYG among all these coal companies? I did it because JOYG makes the machinery and equipment that the coal companies use to mine the coal. You see now? JOYG is making a killing as the need for coal soars, as more and more companies need their "products" to retrieve the coal. That's why JOYG has been En Fuego lately, along with all the other coal stocks. If you take a look, other companies that are in the same industry group as JOYG, have been down A LOT lately, while JOYG is still rising. Why? Because JOYG provides service to the coal companies. Others don't. 'Nuff said.

Joy Global (JOYG) 6 month chart

Approach: JOYG is currently at 45.00 . I would wait for a small dip before buying. But besides that, JOYG is good to go!


Time Frame: I like JOYG as a Mid to Long-Term Investment. If you want, you can also play this is a trade as long as it keeps its momentum and occasionally dips.


Target: First target is 50.25 and 2nd target is 56.45 .


And that concludes my 1st Stock Highlight. I do hope you have enjoyed this special Coal Company stock highlight and found it helpful and usefull in making a wise investment decision!

Next up...SLXA (SOLEXA Inc.)

Why boring 'ol Solexa Inc. (SLXA)??? Is it because its in the Medical-Genetics industry which has attractive technicals? Well, that's just one reason. So what else? I like SLXA because its in the business of selling Genes to Bio-tech and Genetic research companies. My view is that this business will increase as we advance in the genetics field. It is a growing field and SLXA is supplying them with the Genes. Last but not least, the inside ownership (roughly 45%) and insider Purchases (lots and lots lately) signal to me that the company has bottomed out and is ready to start climbing back up.

APPROACH: My first target is 7.50+. This stock is currently thinly traded, so it needs a big boost in volume to get it moving. My opinion is that it has been kept under the radar for a while, so take that as an opportunity to buy some before it explodes. Buying in the low 5's would be great...High 4's even better. But I would even buy at the 5.50 range and anything below.

Time Frame: I really do not want to classify this as an investment because of the riskiness. That's why I consider it a mid- to long term trade.

NVAX and SFP are on FIRE!

Yesterday's picks, NVAX and SFP were sure to not disappoint nimble traders today. I highlighted both stocks and pointed out that both had great times to come because of the amount of institutional/insider ownership. Also, both plays seemed technically sound and poised for an outbreak. NVAX was able to yield OVER 70%, while SFP yielded OVER 22%. I have to say-- NOT BAD! Its totally up to you if you plan to sell now, and I wouldn't blame anyone since those that played made out a decent profit. BUT! I do believe there is some more rocket fuel left in both SFP and NVAX. Good Luck and Happy Trading and Investing! I will have some more picks up later tonight!

WELCOME!

Hey whats up everyone? Welcome to my blog! My name's Nick and I'm really into trading and investing stocks, mutual funds, ETF's, and just about anything else. Although this is my passion, I am not able to trade or invest all the time. Thats because I have to juggle school, a GF, a part-time job as well as homework...and of course- research for stocks. Because of this, I rarely have the time to "daytrade" or trade pennystocks. But when I do have some extra time, I may do a quick daytrade or play a penny for a little.

My main goal is to pick stocks that you can hold onto for a quick trade (timeframe of a few days to a few weeks) or a longer-term investment (timeframe of few weeks to a year or greater). I will use many methods in finding stocks. One method is performance vs overall market sentiment/performance. This is meant to find stocks that are near or at their 52wk highs during bad market conditions (like the ones we have been experiencing in the last few weeks). These stocks may be great performers because of the INDUSTRY that they are in or because of some positive news of some sort. I will highlight the reason I choose a stock as well. Some stocks may be picked because of insider trading activity and institutional accumulation. Again, we must see WHY the insiders and mutual funds are buying. A lot of new investors just rush in and throw a ton of money into a stock that has had some recent insider accumulation without knowing the facts. ALWAYS do some research into a stock that has had some insider buying. Believe me, it helps you avoid buying a stock that has insider buying just to look attractive even though the stock is a dud and there is no great news pending.

Of course there are other great indicators of a worthy stock. I will get into more details about these at a later time.

NVAX (Novavax Inc.)

Novavax Inc. (NVAX) is another stock that I would like to leave you with to take a look at. NVAX is a specialty Bio-pharmaceutical company in the Medical- Biomedical/biotech industry. Bio-Tech and Bio-Pharma has been HOT right now, but why NVAX when there are literally hundreds of other "bigger, better and more established" Bio-Pharma companies out there. Well first, lets look at the chart.


For the last few months as the stock began a steady decline, the volume had basically shriveled up. The stock had basically followed the 50day MA down until July where it had bottomed out. The company insiders began their buying when the stock bottomed out. When you couple that with the facts that NVAX's Avian Flu Vaccine is successful, you have the perfect catalyst for strong upward moves which are evident at the end of August.


So why should we pay attention to NVAX and buy it since its such a speculative stock? You may be thinking that their are a ton of micro- biopharma companies popping all over the place "specializing" in developing bird-flu vaccines. That may be the case, but that's what's HOT right now. China has a growing demand for treatments towards Avian Flu and other diseases that affect primarily Asian countries.

The other indicator pointing towards NVAX as a buy, is the amount of insider buying. This is NOT fund buying...This is actual company big whigs placing their bets on their company. Most of the time, this type of insider buying indicates the insiders know something we, the traders and investors do not.

APPROACH: I would wait till the price drops a little this coming Monday, and then buy NVAX. It is still a good bargain at this price as well. Wait it out and try to grab it at the LOD (Low of the Day).

TIME FRAME: I would buy and hold as a short to intermediate term Trade. I would like to see it at least double and hit the 3 dollar range, even possible going to 4's and filling the gap and constructing a nice base.

SFP (Salton Inc.) 1st pick

The first stock that I have started to look at is Salton Inc (SFP). SFP is a NYSE traded stock that belongs in the Household-Appliance Industry Group. Lately the household and Appliance group has been steadily improving and growing. This growth can be attributed to the housing boom and the need to eventually furnish these homes with--you guessed it, furniture and appliances! SFP designs, markets and distributes small appliances and electronic products for kitchens and cooking as well as television/video equipment as well as tabletop and lighting products. Yes, that's a lot of stuff that can be used in a home, especially a "newly created and desperately in need of furnishings and appliances- home".

That's ONE of the reasons I like SFP. The other reason I like SFP is the fact that it has been under accumulation by the Contrarian Equity Fund, L.P. To me, mutual fund accumulation is a bullish indicator that shows the stock is attractive to real investors and not just day traders. FINALLY, SFP has a high short interest. That's right, roughly 50 % of the float is short (although it is down 11%). With about 16 days to cover and a 50% short float, I can almost taste a short squeeze. We will see in due time. I wills say this though, those who feel uneasy about the huge short position shouldn't play SFP. This stock is a little risky at this point and I would only recommend it to those who have a little tolerance to volitile stocks.

TIME FRAME: At this point I CANNOT recommend SFP as a long-term investment, so I will recommend it as a short - intermediate term trade. Of course this can always change. If indicators point this out as a longer term trade or investment, I will make the necessary adjustments and post the change in holding time frame

OhNo!NotAnotherStockandinvestingblog?! --- 1st words

That is what I believe most people will think when they first stumble upon my blog. Believe me, it's okay and it doesn't bother me. In time I know you will realize that this isn't "just another stock and investing blog". I am hoping you will realize that this is an experience and adventure into the world of investing and trading. My goal is to introduce and highlight stocks of interest that you may or may not be familiar with. The stocks that I will be highlighting will be for both short-term trading and as a longer-term investment (as indicated). I will also provide links to interesting articles and relevant news as well as posting stock charts. By the way, welcome to my blogspot. I hope you find it both informative and entertaining.


----- Nick M H.







Disclaimer: UNFORTUNATLY, All stock picks and highlights are not definite and should be treated with caution. I urge all the readers to do their own homework and RESEARCH on any of my picks and to consult with a professional broker or analyst for any investment decisions. I am NOT liable for the deterioration or loss of any moneys towards any of the readers due to my stock picks.