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Stock markets have been indecisive this week. After hitting new highs two weeks ago, the S and P five hundred and NASDAQ have not been able to push into new ground.
But they are sticking close to those highs, and investors are still showing a lot of enthusiasm for strong stocks with good earnings and good news.
This week, oil and gas drillers and oil service companies have dominated the lists of top gainers. With oil prices passing sixty dollars a barrel for the first time this year, Stock Watch Weekly expects this group will continue its month-long climb.
Another group that has been surprisingly dominant this week has been the credit card companies. Capitol One, MasterCard and American Express are all top performers as the market expects consumers to open their wallets again.
Americans have been increasing their personal savings rate since last fall, rather than spending the money they’ve saved at the gas pump. Now with employment trends looking good, they are ready to enjoy themselves, but carefully.
Three well-known companies that could benefit are Amazon, Groupon and EBay. But we believe their newest competitor, LiveDeal, is the best opportunity in the market to take advantage of Americans looking for values.
LiveDeal’s mobile restaurant coupon finder is sure to be especially popular as vacation season approaches and consumers are looking for good deals in new cities. Careful spending should also benefit LiveDeal’s ModernEveryday online shopping business.
Our target on LiveDeal is
Technology stocks this week took a break from their three-month run as a top-performing group. However, several companies in the semiconductor niche have been too strong to hold down.
This is a good time to make a move into select semiconductor stocks. Altera, Intel and Texas Instruments all soared this week along with many less familiar names. But our hot stock pick, Dataram, could have the biggest upside potential of all the important semiconductor companies.
Its price is a bargain now as new management is working on a turnaround in this pioneering company. Their efforts have already paid off with significant cost cutting that should increase Dataram’s bottom-line potential in the coming quarters.
Dataram is an exciting choice because it is not widely recognized by the public but is deeply respected in the industry. That means the stock is undervalued, giving it even more room to soar as turnaround efforts succeed.
Though little-known to many people, you can be sure Dataram is a seriously respected business. Over 70 of the Fortune 100 top companies are Dataram customers.
Dataram’s new management team under CEO Dave Moylan is making the company more visible and we expect to see valuations and share price improve sharply.
Another stock we like this week could take advantage of increasing oil prices.
Investors are already seeing the obvious, and flocking to the oil service companies. But how about something a little less obvious?
We think Waste Management Inc. is a brilliant choice.
While high oil prices impact gasoline costs to run the company’s trucks, they’re no bar to profits. Waste Management has a long-held policy of levying fuel surcharges to protect itself from gasoline price surges.
In fact, higher fuel prices improve Waste Management’s revenues.
But there is another important part of its business that just got a shot in the arm—plastics recycling.
Plastics are made from oil. And with cheap oil on tap this past year, demand for recycled plastic has been falling.
Many of Waste Mangement’s small competitors in recycling who don’t have a waste collection business to keep revenues flowing are close to failure.
But Waste Management is financially sound. With oil prices rising, its recycling business should contribute strongly to profit margins again.
Take a look at LiveDeal, Dataram and Waste Management now. We believe they are outstanding opportunities for investors who like to think ahead of the crowd.