Picks for 10th January 07

For the last 2 days i have not traded in this market. I think it was a wise decision. The market is making dangerous swings, shorts have made quick cash and longs have been burnt. Cautious investors should stay from the market for a while. However tomorrow looks a good day to jump back in.

The best stock for 10th Jan is no doubt Alcoa Inc (AA). They reported their earnings after business today and it was good. Their Q4 profits rose 60%. The stock gained 4.8% in after hours trading.

  1. AA (EPS = 2.414, P/E = 11.81, Market Cap = 24.7 B, PEG = 0.90) – Excellent numbers.
  2. COGT (EPS = 0.38, P/E = 28.66, Market Cap = 1.03 B, PEG = 1.29) – I dont like this one for a long time, but will make a good short term buy and sell trade.
  3. FLEX (EPS = 0.60, P/E = 19.40, Market Cap = 6.72 B, PEG = 0.68) – This stock is meant for greater things in life. UBS has upgraded this one to Buy.
  4. HAL (EPS = 2.63, P/E = 10.90, Market Cap = 28.87 B, PEG = 0.66) – With such strong numbers and cheaper stock price you couldnt ask for more. This is a Jim Cramer recommended stock.
  5. NTE (EPS = 1.28, P/E = 11.50, Market Cap = 643 M, Dividend = 5.6%) – Good price, good dividend.
  6. SMOD (EPS = 0.61, P/E = 21.86, Market Cap = 785 M, PEG = 0.83) – A bit higher P/E, but all the numbers look solid.
Stocks worth shorting
VPHM, FFHL, S
  • Anonymous

    Can you look at CRM as stocks worth shorting!! as I am shorting it now, any thoughts about the trade?

  • sJ

    Hey,

    Sorry i dont follow CRM.

    But with such a high P/E and week high prices,
    this is definitely a stock worth keep away from. However Salesforce is a brand-name company and with a good PEG ratio, which could drive the stock much more higher.

    Keep away…