The Play Of The Day DOUBLE PLAY: BZH & FBP

What ??? Again ???

Well BZH has just hit what i will now consider the buying price for a quick play.

BZH has not stayed at that price very often and not that long when conditions were good are they are actually.

With all that is happening right now on the positive side, i expect BZH to make a 7-10% move (to the upside) very rapidly as many are now expecting more actions from the Fed and if that was to happen i would probably think more of a 10-15% increase very rapidly.

BZH is one of my favorite as a quick play as it is almost explosive when it starts to march upward exactly as FBP did last week (if you bought FBP AT 3,39$ or close to , you would have been able to sell over 3,85$ last friday for a 15%+ return in 1 week)

I would not go all in as i am still checking out on FBP. It is back to the 3,66$ area and if it dips below that, i will start getting back in.

So today is almost a double play day...

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

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The Play Of The Day LVS (Las Vegas Sands)

Oh boy, what a drop in the recent weeks: from 55$ to 36$: close to 40%.

Did the fundamentals changed that much? Yes and no. The earnings per share did actually dropped and P/E is now over 21 times earning.

Year over year gross revenues were 10% higher but this is the net profit that drop enough to get the stock slammed.

Could it be that expectations were a bit too high? I think so.

Could it turn around? YES

So even if it is not the one stock for a trading play, it is a good time to start accumulating. I do not know if it will skyrocket from this point. It could even go a bit lower on the next dip but this is a stock definitely worth a lot more than it's actual price.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the day ABFS (Arkansas Best Corporation)

If you believe the economy is struggling but will emerge stronger and stronger, transportation of goods is a must. If you believe the opposite, then at this time stay in cash.

For all the goods that need to be manufactured, raw products and finished goods MUST be transported to the manufacturer then moved to a selling point.

North America is still a bit fragile but transport is one of the most needed sector after banks and manufacturing.

ABFS is one that seems highly overvalued as of today and this is limiting the upside potential on the very short term. But when profit start coming in at a faster pace, this could be a winner.

At actual level it is a good time to start accumulating a bit a the time and most especially on the dips.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day UWN (Nevada Gold and Casinos)

On Friday before market opens, UWN will report the 2012 year revenues and i expect a good quarter.

Net profit has been hit this year with acquisition charges and write offs but Q4 should not reveal any more of those and even if it has already affected the profitability for the year profitability in the last quarter should be on the rise.

This will be a full quarter reporting revenues for the newly acquired slot machine route from Trucano and will definitely impact earnings in a positive way.

If net revenues were to surpass the 15M$ the net influence on the bottom line would definitely make a huge difference between a loss and a profit for the quarter.

The shares have been on a down trend since UWN acquired the Deadwood route of 900 slot machines as if the market did not believed there would be a significant impact on earnings.

There is also the market slump and the idea that overall USA sentiment is down and that customers are spending less on leisure.

I agree that the overall customers sentiment is bad but i think that it has improved since the last 6 months and even if i do not expect a large surprise in the results UWN will unveil on Friday, i think it could be a good performance quarter overall.

At the actual level (between 1,05 to 1,15$) UWN is highly undervalued and greatly oversold. Having a so small float of 15M shares only, it would only need a bit of momentum to turn around the shareprice. You can also use the stop losses in case of reversal BUT BE VERY CAREFUL HERE. The bidding on UWN is generally low so any stop loss sell triggered would be at market price and it could turn ugly for any sell order greater than 500 shares.

The possible downside of these shares is close to nil unless UWN was to report a very, but i mean , a very bad quarter.

UWN has no acquisitions in sight (no public info to this subject) and it must have been concentratring on profitability.

For the above reasons, UWN is my pick for today as it is time NOW to start accumulating for a good trend reversal toward the 2$ mark (i had expected last year a 4$ mark but that was before share issuance)

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of The Day BZH (Beazer Homes)

Looking for a play at today's low level and that is NOT Europe?

Beazer Homes has just refinanced it's debt and issued stock to finance some more land acquisition.

The stock price paid for it deerly BUT i think that 30% drop is too much and it is now way oversold.

Whenever BZH is near 2,50$ i jump in and accumulate some more and i do take some profit near 3$

Construction and banks lending are the most critical to any economic recovery and if you believe it will happen (or that is is already happening) well it is time to get in...

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of The Day FBp (First Bancorp)

Markets seems to be pointing to a down open this morning and whenever this happen, i go back to one of my favorite 1 or 2 days play that most of the time gives back some very nice return in the range of 4-8%.

FBP was trading near 5$ when the US government started to unload theirs shares from TARP (they had about 100M of them) at market price lowering the share price to under 4$.

The trading range normally is between 3,60 and 3,90$ but this morning it could be going down a lot more.

I will keep an eye on it and i will be in whenever it crosses the 3,45$ or lower and i will be VERY PATIENT as it can drop suddently and rapidly but even at 3,45$ this is a good one to accumulate.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play Of the Day BMO (Bank of Montreal)

How about a great canadian bank, well capitalized and with steady profit day in and day out?

How about a close to 5% dividend???

Not more to mention. This is Bank of Montreal.

This is all is needed to know but this is not a trading play but an accumulation play whenever you want to increase your dividend cheques every quarter.

At 70 cent per share that is the best between all Canadian banks.

Under 60$ is a great way to add value to your portfolio.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain.

Get THE PLAY OF THE DAY on Twitter : @investman2

ALERT ALZM (otcbb)

This one is flying today after announcing that they will acquire a new product in the medical arena.

Here is the link:

http://www.marketwatch.com/story/allezoe-medical-holdings-alzm-announces-acquisition-agreement-2012-07-19-101733658

It will be very interesting to see where that will lead this one between today and tomorrow but you can play for some pocket change.

Expect HIGH volatility and high risk but when you can play 100K sahres for under 1K$ and if you have what's needed to do that, it could be very lucrative.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

The Play of the Day FITB (Fifth Third Bancorp)

This is banks week.

Another very good and stable bank. To the opposite of the trading banks (JPM , MS) the regular banks seem to be on a very positive upward movement.

Over the last 2-3 years they have streamlined their expenses and credit quality has improved leading to better profitability. FITB has also raised his dividend 3 times: 1 cent, 6 cents then 8 cents being another good sign of improving situation.

So this morning FITB showed a 13% profit increase even if revenues felt short. The way to improve revenue is more loan toward business and customers WITHOUT taking chances as banks were taking early 2006-2007 and i am pretty confident they are on the right track.

So unless things turn for the worst, i see no problem for FITB to achieve a price target of 17$ this year.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain.  

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day BAC (Bank of America)

This is bank week...

Well can we say more than these numbers: a 10B$ swing between last year results and this year for the same quarter. Simply great.

Sure last year they had to use a larger than expected provision for bad loans and this year is the opposite as these provisions were lower.

What about an 80% in mortgage refinancing and better quality credit.

So that means that they have a 2,6B$ ready to hit markets in loans and financing in a streamlined new BAC organization with savings of 8B$ a year.

Ok, that's enough for me. I will be in again an add more under 8$. My price target for the next 6 months is a share price hovering near 10$ for a good 25% return. Be carefull as price could drop a bit this morning as market seems to be a bit weak.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the day STI (SunTrust Banks)

This is banks week...

Very interesting bank and again another under evaluated one at 0,67 (earnings to book value) compared to other banks in the same category where their book value ratio is either very close to 1 or higher.

So, what is wrong with STI??? REVENUES AND PROFIT. Again the main problem is net profit and higher revenues meaning a larger market share.

But second half of 2012 will help regional banks that were solid enough to clean their house and their very bad portfolio still maintaining their tiers ratio. They will be able to grow based on new loans not on expenses reduction.

STI has been able to do that and it's now on recovery path.

I will not expect a very high return sor STI this year, but i do not expect volatility to be high either.

STI will start moving into a trading range (22$ to 24$) and when profit hits then that range will move higher, dividend could be increase etc. I expect a share value of around 30$ by year end. (Still a good 20% return)

So i will open  a small position and start accumulating STI. In the long run, this will be a winner.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day C (Citigroup)

This is the week for the bank picks.

Many says that the economy will be driven by construction. Yes BUT if banks do not lend than there is no new construction coming into the market.

Where is the starting point: profit. When banks starts to make more profit they start making more loans and the last 3 banks that have reported have indicated just that: more profit and more loans than expected. Sure expectations were very low as a very slow recovery has been taken into account but again this morning look at Citigroup and the result on pre-market trading for having beat the estimations. They are trading at near +4%

It also makes me believe that larger banks will make more profit lending to big boys and then it will echoed to smaller banks, namely regionals, all over the place as long as these banks have been prudent. The wheel has started to spin in the right direction!

So this morning, i will be adding some Citigroup but watching carefully the opening trend as it seems that 4% gain in pre-market is a bit high but nevertheless, under 30$ it is still really cheap for Citigroup as their P/E ration is under 8, their price to book value really dirt cheap (0,44), and is evaluated the lowest compared to other large banks.

NOW, if Citigroup was to officially announce a dividend increase watch out for a rapid recovery. Not that long ago (march 2012) Citigroup was trading at 38$. It took 4 months to lose 25% of it's value BUT the rise could be a lot faster.

I do believe Citigroup will trade over 40$ by year end so this is a great time for accumulation and a close to 40% increase in value over the next 6 months.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

THE PLAY OF THE DAY: FBP DRL

A double play for a Friday the 13th...

As we have seen so far this morning, big banks (JPM   WFC) are reporting profits much better than anticipated. JPM is a trading bank combined with regular bank BUT Wells Fargo is a regular bank (large by all means...) and has nothing to do with a banking investment. Both did made solid profits.

Conclusions: as far as banks are concerned, we could be in for a great Q2 profit report for most of them and especially regional banks that have been hammered recently.

Stock market being what it is, i think that finding stars before others make the difference and in that regard Puerto Rico is an area where  problems have been larger than anywhere else but fixes will come and economy will improve out there. It will do that after other states i agree BUT it will improve.

So my point is that it could be the time to get back in and start accumulating the 2 following banks:

FBP has been growing (credit card portfolio base  bought for 402M$) and is still one of the largest UNDERVALUED bank of the area with a price to book ratio of only 0,56. Also very important to note is their share float. So low that any profitability would impact shares a lot faster than any other banks.

DRL is evaluated only as 0,39 (price to book ratio) and is on the verge of profitability with a 200M$ load provision taken on the last quarter (when stock dropped from 1,80$ to 1,20$) and is ready in my opinion to achieve profitability and growth in all sectors of operation. Also very small share float.

With that in mind, these 2 banks, that i have played short term for 5-10% profit each time, are poised for excellent growth over the next year and should be providing investors with a great return %. They are highly volatile but it is worthy.

Today launch a week special: Banks. They are in the first to reports and will give an excellent idea on how the market will react next week.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

THE PLAY OF THE DAY GW (Garda World)

With a new agreement with Desjardins for 250M$ AND a 6 years contract with Laurentian Bank, this is without a doubt a stock that will benefit in the coming days.

I will be at 8,25$ or lower and will accumulate some more. This stock should be close to 9,50$ in the mid term.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

On The Radar After 30

This morning i am keeping an eye on the following stocks:

BZH     ( Beazer Homes) 

After pricing the new shares at 2,90 yesterday it will probably hoover around that price. I will be a buyer at 2,79 up to 2,85. I expect their next results to be way better than the last quarter.

GPR (Canada)   GPL (USA)    (Great Panther Silver)

Silver has bee hammered down lately and i expect a reboud. Good time for a bit more accumulation. Will watch price between 1,62 to 1,64 (GPR) and 1,60 to 1,63 (USA)

INT (Intertainment Media)

Again good price discount this morning but there is a huge wal at 0,35. Another good entry point for accumulation at this afctual level.

F  (Ford)

It is flat at 9,35 and watching the 9,25$ level today. Another good opportunity to accumulate

PLAY OF THE DAY MIO(cve) (Mindoro Resources)

Well with the actual stock market stuck in the mud, sometime we need some foreseable action and Mindoro could be one very interesting stock.

They are in the Philippines and unfortunately cash is running out. Last week, they sign a Heads of Agreement with TVI  Pacific to form a join venture on some properties.

Part of this was the immediate cash loan that will let Mindoro Resources operate until final decision (after due diligence from TVI) is made.

This is a win win situation and the immediate beneficiary will be Mindoro as they will still be partners in the properties and will received an instant cash injection. Il will diluate actual shareholders BUT TVI did offered 0,05 being the actual price. So some dilution but no discount to market price.

At the actual 0,05 i think this is a good play and could create a great return within 90 days if due diligence favor the deal but my instincts are telling me that this deal will get it's green light.

Naturally THIS IS NOT THE ONE TO bet all in...but could jazz your protfolio a bit if it goes as planned...

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

   

THE PLAY OF THE DAY F (Ford)

What else can we say about Ford???

Last night on the conference call from Alcoa, the ceo mentionned automobile segment was doing good. To me good is a lot better than doing OK or STABLE...

So how is Ford really doing? Well they just started the production in their new facility in Romania where they have invested over 850M$...not bad...

They also got their credit back to investment quality grade and since Q1 results were released Ford was downgrade by some investment analysis.

So why should we pay attention to Ford? Look at the P/E ratio: it is 1.99 (not a typo error here)

Ok i will agree that sales are down as is profit but how low can it go?

Simple maths here: 4,75$ profit per share means a p/e of 1,99 where  GM and FIAT (Chrysler) are at a p/e of 3,5, that means that FORD profit will have to get down to 11B$ (40% decrease over all divisions) to be at a comparable P/E.

So, i think it is time to accumulate from now on. Some here and there and more buying on dips. Yes there maybe some other bumps over time but overall Ford is a great investment if you have 2-3 years window.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

THE PLAY OF THE AC.B (Air Canada)

Very tinteresting that AC.B closed friday at 1,01$ after having a good run to 1,03$. It happened at the very end of the day where 0,02 were taken off the last price.
So today there is, at this time, almost no sell order under 1,04 and even there after everything is clear up to 1,10 as only about 300K shares are on the sell side.
So for a quick play i will make enter at 1,01 (still some left at this price) and make an exit point over 1,06.
There is good support this morning between 1$ and 0,99 and this is limiting the down side.

If you want to play it a bit longer, there is a very high possibility of a coming great leg up. Results are good and fuel cost is still on the down side.

I would not be surprise to see AC.B going around 1,45 before year end especially with the talks about pension funding that could be extended by antoher 10 years helping a lot AC.B.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

THE PLAY OF THE DAY TVI.TO (Tvi Pacific)

Well for a junior mining company that many had declared in bad shape, they have projects and that is what is needed in the mining industries. You simply cannot let your mines being depleted without acting and this is exactly what TVI did this morning. (see previous email for link to NR)

By the way, TVI is still generating close to 100M$ in revenues per year with some good profit and they had about 20M$ in the bank.

So what is the problem? Why are they stuck in the 0,025 and not closer to 0,25? Why a 90% discount?

Easy answer: mining act in the Philippines. The very moment this act is signed and that permits starts being approved, TVI will definitely get backs to where it should be.

So at 0,025 this is a steal especially if all their projects come to life. The gold mine almost ready to go (Balabag) by itself would have the share price incrase by a 0,05 to 0,10.

So at actual level, i am a buyer with an exit price of at least 0,10

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

 Get THE PLAY OF THE DAY on Twitter : @investman2

ALERT TVI

TVI has just announced that they are moving toward a nickel mine.

At this moment here is the link and more to come on this deal

http://www.tvipacific.com/Investors/news/News-Release-Details/2012/TVI-Pacific-Inc-Announces-Joint-Venture-Opportunities-and-Equity-Investment-With-Mindoro-Resources-Ltd1130091/default.aspx

THE PLAY OF THE DAY WPX (Western Potash)

WPX is a junior company that tries to find a suitable partner to develop a huge potash mine and it's shares have been hammered down last week after some comments were made to the fact that no new potash mines will be build before at least 5 years and another release to the effect that WPX has ended talks with one of the possible partner.

The problem: nothing was new about these facts and shares have been greatly oversold. I expect a rebound around 1,00$ so this is still a good time to accumulate at a great price and even take some profit when WPX hits the 1$ again.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

PLAY OF THE DAY BZH KBH HOV

All in construction sector and for one good reason: a bit of diversification in a sector that has bottomed.

Sure the road may be bumpy and many dips may appears but for example in just a matter of a couple of days, BZH increase by 10%.

Naturally i would buy those 3 names as they represents different sectors of the USA:  KBH is mostly west , BZH is mostly east and HOV is mostly central.

So you have it pretty much coverage with 3 companies.

Any come back of the actual situation in the States WILL have to have construction sector coming back at first to profitability and even if it is not done yet, i would estimate that before 2012 year end, they will be flat or profitable and this is the push those 3 stocks need to give great return.

I would prefer accumulation at this time instead of a short term trade where you can add on each 5% dip.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2