Picks for 17th Jan 07

After the 3-day break, the stocks didnt move either way as expected. Energy sector took a beating amid another sell-off in oil, where as Health Care and Transportation sector saw some upswing.

Investors were worried that the recent rally in Technology sector may not live up to the earnings expectations that have been priced into the sector over the last few months. Among noteworthy, Symantec SYMC dropped13% and Cisco CSCO lost plunged 3%

Oil prices dived 3.4% to 19-month lows after Saudi Arabia’s oil minister surprisingly denounced the need for an emergency OPEC meeting and further production cuts.

My picks for 17th Jan are

  1. ANSW (This one has been over-sold and shorts have won. But it has reached its bottom and i expect to see upward swing). Sector: Technology > Industry: Computer Services
  2. CBK (EPS = 1.02, P/E = 19.92, PEG = 0.94, upgraded to outperform rating) – With such numbers you got to love this one. Sector: Services > Industry: Retail (Apparel)
  3. LQDT (EPS = 0.31, P/E = 59.05, PEG = 1.17, Analyst Recommendation = 1.9) – Higher P/E is offset by excellent PEG. This one is a long term keeper. With prices dropping today it is an excellent buy for tomorrow. Sector: Services > Industry: Retail (Catalog & Mail Order)
  4. NEXT (EPS = 0.54, P/E = 21.40, PEG = 1.16, Analyst Recommendation = 1.5) – Low volume trading but nonetheless excellent number. Sector: Technology > Industry: Semiconductors
  5. STST (EPS = 0.87, P/E = 25.06, PEG = 1.23, Analyst Recommendation = 1.8) – The stats speak for themselves. Keep on getting alot of contracts. Sector: Capital Goods > Industry: Aerospace & Defense
  6. WIT (They are coming out with their earnings tomorrow they are going to be excellent) Sector: Technology > Industry: Computer Services