Here you will find information and news about stock markets, online trading, investing, stock brokers. Great collection of tools for everyday trading, like real time stock quotes, interactive stock charts, options calculator, earnings calendar, market comments and suggetions for good reading material makes your trading day profitable!

Saturday, June 18, 2005

Update: About Financial Press

Roger Nusbaum writes in his blog about his daily and weekly reads. He also says a few words about each of those news channels. It is always good to know which resources are read by others.

Read further:
Random Roger's Big Picture: What I Read

See also:
About Financial Press

Friday, June 17, 2005

Update: Live Action: Onyx Pharmaceuticals Inc (ONXX) calls

I sold my Onyx Pharmaceuticals Inc (ONXX) July 2005 $30 calls with $0.85 as ONXX fell below intra-day support at $26.55. The total profit from this trade was +13.33%, I hold the position for one and a half hour.

See also:
Live Action: Onyx Pharmaceuticals Inc (ONXX) calls

The Trouble With This Spring's Rally

Alan Farley has written pretty interesting column about the recent rally on the markets. I can't say that I fully agree with he's thoughts, but I don't regret that I read it though. It's some days old, but it really doesn't matter that much, because he has given more overall take on the markets.

The Trouble With This Spring's Rally
TheStreet.com

By Alan Farley
RealMoney.com Contributor
6/14/2005 8:10 AM EDT

Let's look at three things I don't like about the spring rally. This concise listing isn't a prediction, because I doubt we've seen the highs for the move yet. But these elements raise serious questions about the market's ability to break out once we reach the 2005 highs.

High-beta dogs that grossly underperformed over the last year have led this spring rally. Not surprisingly, these are also the most shorted stocks in the market universe. This raises the possibility that we're looking at the biggest squeeze of the year rather than a sustainable rally.

The last-hour indicator compares price action during the first and last hours of trading. This calculation exposes institutional participation because of the tendency of big players to be most active at the end of the day. The persistent downtrend of the last-hour indicator is quite disturbing to say the least. While the indices just tagged new highs for the move, the last-hour indicator is nearing its lowest levels of 2005. This rollover suggests the big boys aren't buying this rally despite all of the upgrades and happy talk.
Read further:
TheStreet.com: The Trouble With This Spring's Rally

Live Action: Onyx Pharmaceuticals Inc (ONXX) calls

I just purchased some Onyx Pharmaceuticals Inc (ONXX) July 2005 $30 strike calls. There are rumours that Bayer may make a bid for Onyx Pharmaceuticals. Today, there is unusual options volume with July $30 options (calls volume: 2042, puts volume: 21) and August $30 options (calls volume: 1388, puts volume: 20).

The technical picture is also OK for ONXX, the resistance is at $27.77, shares are currently trading at $26.66.

The price for the calls was $0.75. There is a weekend coming, which is a little negative, because the options expirations comes closer without trading days ahead.

About Financial Press

John Bethel writes in his investment blog which news channels he is actively reading/watching. It is always a hard decision for an investor or trader to choose which news sites and journals to read. You don't have time to keep an eye on all of them and besides, most of market related journals and web sites are just a waste of time anyway, so you do have to pick some fovorites.

Read further:
Controller Greed: More on the Financial Press: What I Read

Update: Live Action: TCF calls

I sold Turbochef Technologies Inc (TCF) calls with $1.50. The stock peaked nice to $19.21, but didn't have strength to move on and fell back to around $18.90. Total profit from this trade +3.45%.

See also:
Live Action: TCF calls

Live Action: TCF calls

I just bought Turbochef Technologies Inc (TCF) July $17.50 calls with $1.45. High short intereset, just break up to intra-day highs, expect to hit $19.50-$20.

Stocks to watch: GMX Resources Inc (GMXR)

GMX Resources Inc (GMXR) is pointed out in The Knight Trader blog, saying that "GMX Resources, Inc. broke out yesterday on high volume and made a new all-time high. MACD on a daily chart is looking bullish."

See the chart below for another reason why I keep it in my watchlist today: There has been 5 similar patterns during the last year (a jump followed by another day up). Follow this link for a better detailed chart.

I consider trading GMXR only if it shows enough strength.

Stock Chart: GMX Resources Inc (GMXR)
Chart Courtesy of StockCharts.com.

See also:
The Knight Trader: MXR Blue Skies

Update: Live Action: Long NeuroMetrix Inc (NURO)

NeuroMetrix (NURO) has performed quite well since I first mentioned it in my blog. There was also news about NeuroMetrix 2 days ago: Punk, Ziegel & Co reiterated Buy and raised the target from $16 to $20.

NURO closed at $17.24 yesterday (+5.57% since buying), but is still under $17.50, which is all time high and may be quite tough resistance. Therefore, we still may see correction until this resistance is broken.

Stock Chart: Neurometrix (NURO)
Chart Courtesy of StockCharts.com.

See also:
Live Action: Long NeuroMetrix Inc (NURO)
Update: Analysis: NeuroMetrix Inc (NURO)
Analysis: NeuroMetrix Inc (NURO)

Thursday, June 16, 2005

Apprenticed Investor: Lose the News

Barry Ritholtz has published a great story on TheStreet web page. I found it through The Big Picture blog. This is one of the best market related stories I have read lately and I think it is absolutely mandatory reading for every trader or investor. It tells why stocks often react just opposite to the news, like sell-offs on good earnings report.

Apprenticed Investor: Lose the News
TheStreet.com

By Barry Ritholtz
RealMoney.com Contributor
6/16/2005 7:10 AM EDT

Have you ever noticed how the stock market reacts differently to the same reported events?

Why is it that we sometimes sell off "in response to rising oil prices," but at other times the "market rallied, despite the rise in the price of crude"?

Is it possible that the markets are responding to forces other than the latest headlines?
Short answer: Absolutely. Yes.
Longer answer: Keep reading.

First, news is hardly new.
Second, the vast majority of news is irrelevant to your investing.
Third, because news organizations often try to appeal to as many people as possible, they have a disconcerting tendency to catch various trends just as they are peaking.
Read further:
The Big Picture: Apprenticed Investor: Lose the News
TheStreet.com: Apprenticed Investor: Lose the News

Low Market Volatility

I have watched VIX for some days and I think it's time to give some attention to it. The Volatility Index (VIX) is currently 11.23. As you can see from the chart below, it has not been so low for some time. Low volatility usually predicts that a correction is coming in the nearer future. Therefore I wouldn't buy myself into the market too agressively right now.

Another warning sign related to volatility is the Bull/Bear ratio, which is: 52.7% Bulls and 20.4% Bears. Too many bullish analysts out there.

Chart of Volatility Index:
Chart: Volatility Index (VIX)
Chart courtesy of Prophet.Net.

There was a story about volatility in The Agile Trader today.

Pre-market Update: Even More On Volatility
The Agile Trader
June 16, 2005
20-day Historical Volatility has declined to 6.32, the lowest level since July 2, 1996.

As you can see, the last time we had volatility this contracted the short-term prognosis was miserable with the SPX dropping from about 676 to about 610 (during which time the VIX rose from about 15 to 28).
Read further:
The Agile Trader: Pre-market Update: Even More On Volatility (paid subscription required)

Update 2: Live Action: D R Horton Inc (DHI) calls

I just sold my Horton (DHI) call options with $1.75. The total profit was +218.18% in 1 day. The options are very volatile because tomorrow is the expiration date.

See also:
Update: Live Action: D R Horton Inc (DHI) calls
Live Action: D R Horton Inc (DHI) calls

Pre-market Information

Futures:
NDX: 1532.45 (+0.19%)
INDU: 10567.80 (+0.01%)

USD/EUR: 1.2124

Stocks seen up; Pfizer, Boeing in focus
MSN Money
Reuters
June 16, 2005 07:25 AM ET
NEW YORK (Reuters) - U.S. stock futures pointed to a higher market open on Thursday, with a focus on drugmaker Pfizer after a planned acquisition and aircraft maker Boeing after it announced a slew of plane orders.

Oil prices continued to hang over the market, as prices stayed above $55 a barrel.

Dow component Pfizer Inc. , the world's biggest drugmaker, on Thursday agreed to buy Vicuron Pharmaceuticals Inc. for $1.9 billion in cash.

Shares of Morgan Stanley could be on investors' radars after The Wall Street Journal reported that dissident shareholders are considering waging a proxy battle against individual board members as they come up for election at next year's annual meeting.
Read further:
MSN Money (Reuters): tocks seen up; Pfizer, Boeing in focus

Wednesday, June 15, 2005

Update: Futures Training Session

I got a letter from RealTick staff, saying that another intra-day futures trading seminar is scheduled for July 28. The date is not on their web site yet, they started to fill the class from waiting list at first. You may have a change to participate on July 28, if you sign up to the June 21 class.

See also:
Futures Training Session

Alert: Watch for ASTM

Watch for ASTM, it may trade up before closing, currently trading at $3.00. Positive news (CEO on CNBC). Negative side: $3 is also resistance.

Update: Live Action: D R Horton Inc (DHI) calls

DR Horton Inc (DHI) has been struggling with $35.99 resistance (all time high from June 3, 2005) for an hour. If it manages to break it, the whole upside way is free. Today's high is actually $36.02, but I don't deem it yet a break-out. If it manages to consolidate (or even much better, close today) above $36, then DHI probably surges tomorrow.

The call options are trading at $1.05/$1.15, it makes 100% of profit at the moment (I purchased a few June $35 calls earlier today with $0.55), but I am not selling these right now, I'll keep the options over night, because I still bet on the break-out.

Stock Chart: Horton (HDI)
Chart courtesy of StockCharts.com.

See also:
Live Action: D R Horton Inc (DHI) calls

Fed's Beige Book

Federal Reserve released Beige Book today.

Beige Book
Federal Reserve Board
June 15, 2005
Reports from all twelve Federal Reserve Districts indicate that business activity continued to expand from mid-April through May.

Retail activity was mixed. Several Districts reported disappointing May retail sales results and cited unseasonable weather as the principal reason. A few reports mentioned that high gasoline prices were having a negative impact on sales. Almost all reports on other service industries were quite positive. Residential real estate markets remained strong in most Districts, and several Districts reported improving commercial real estate conditions. Most Districts reported that manufacturing activity continued to expand overall, although some reports described varying conditions across industries.

Labor markets improved in most Districts. Overall price pressures were moderate, but several reports noted concern over high fuel, transportation, and building materials costs.

The Federal Reserve Bond: Beige Book

Seeking Alpha lists Online Trading

Seeking Alpha reviews Online Trading blog and added it to its Stock Market Blog Resource Page and into Seeking Alpha public Bloglines.

I want to thank David Jackson for finding time to take a look at my blog and write a post about it. To be honest, I didn't expect such nice words from you! :)

Read further:
Seeking Alpha: Online Trading

Update 2: Live Action: Long Intuit Inc (INTU)

I would close the Long Intuit Inc (INTU) position right now. Market doesn't seem strong today and the market is taking INTU lower. The sell price is $44.61, so +0.50% profit from this trade.

See also:
Update: Live Action: Long Intuit Inc (INTU)
Live Action: Long Intuit Inc (INTU)

Update 2: Live Action: Google (GOOG) puts

I just sold my Google (GOOG) puts with $1.85. Total profit from this trade +68.18% in about half an less than an hour and half.

See also:
Update 2: Live Action: Google (GOOG) puts
Live Action: Google (GOOG) puts

Correction (June 15, 2005 10:27 AM):
I lost my time sense, the trade lasted less than 1 hour and 30 minutes, not "about half an hour" as I wrote before. Sorry for the typo!

Update: Live Action: Google (GOOG) puts

Google (GOOG) puts worth 125% more just 30 minutes later. Still waiting a bit.

See also:
Live Action: Google (GOOG) puts

Live Action: D R Horton Inc (DHI) calls

I bought D R Horton Inc (DHI) June 2005 $35 call (just to see, if my strategy works) with $0.55. I see DHI bouncing back to recent highs at $36. DHI is recent Briefing pick also.

Note that this is not a recommendation, but just an entry of my trading diary!

Live Action: Google (GOOG) puts

I just bought Google (GOOG) June 2005 $270 puts with $1.10. As the expiration is on this Friday, it is a short term trade.

Note that this is not a recommendation, but just an entry of my trading diary!

Live Action: Google (GOOG) short

I would short Google (GOOG) at $275.80 (bid price in pre-market at the moment). Google is gapping below yesterday's low and breaks support.

This trade is not with real money, I am just checking my trading strategy.

See also:
Update 2: Google (GOOG)

J.P. Morgan Settles Enron Suit ($2.2 billion)

J.P. Morgan pays $2.2 billion dollars in the settlement of Enron suit for doing nothing wrong as they say. Citigroup agreed to pay $2 billion to settle its suit. A large chunk of dollars to pay to "eliminate the uncertainties". What do you think?

J.P. Morgan Settles Enron Suit
TheStreet.com
By TSC Staff

6/14/2005 8:37 PM EDT

J.P. Morgan Chase (JPM) has agreed in principle to settle a pending federal class-action lawsuit brought on behalf of Enron security holders.

Under the terms of the settlement, J.P. Morgan will make a payment of $2.2 billion to the settlement class, the company said in a statement late Tuesday. Plaintiffs' attorneys' fees will be paid out of the settlement.

It's the second $2 billion settlement for J.P. Morgan, the nation's third-largest bank, in just three months. In March, the firm paid out that sum to aggrieved investors in WorldCom, the other poster child for this decade's corporate malfeasance.

The Enron settlement doesn't include any admission of wrongdoing by J.P. Morgan, which said it agreed to the settlement solely to "eliminate the uncertainties, burden and expense of further protracted litigation."

The suit claimed J.P. Morgan helped Enron falsify financial statements and hide debt, while the bank's analysts were issuing falsely positive and misleading reports, according to The Wall Street Journal.

Read further:
J.P. Morgan Settles Enron Suit

Tuesday, June 14, 2005

Biotech, Finally

I found a good post about biotechnology in BusinessWeek Online. It broughts out the the general tendency of the sector. If you don't have time to read the full article, I suggest to go for "Diagnostics" section, this was the most interesting for me. Better diagnosis and personilized drugs is definitely the key. That's one reason, why I have written about NeuroMetrix (NURO) recently, their devices let doctors to diagnose faster and cheaper. Good and precise diagnosis becomes more and more important.

Biotech, Finally
BusinessWeek
By Catherine Arnst, Arlene Weintraub, John Carey, Kerry Capell, Michael Arndt
June 13, 2005

Even long-beleaguered biotech investors have reason to be optimistic. True, biotechnology indexes have underperformed the overall market for much of the past year, and few of the 1,500 companies in this sector are profitable. But the medicines are selling. Ernst & Young International estimates that nine new biotech drugs approved in 2004 will bring in total revenues of $3 billion this year. By 2007, sales of just those products should grow to $8 billion. "I would say the industry as a group will become profitable by 2008," says Dr. Mark Monane, director of biotech research at investment advisers Needham & Co.

Response rates for cancer drugs, for example, often are stuck at 20%. Tired of such poor performance, pharmaceutical companies are focusing more effort on developing the diagnostic tests that would match a treatment to a patient's genetic profile, reducing side effects and increasing efficacy. "I think you are going to see a revolution in personalized medicine in just a few years," predicts Dr. George Demitri of Dana-Farber Cancer Institute in Boston.

The biggest problem with most major drugs today is that they don't work in anywhere from 25% to 60% of patients. Biotech is starting to improve that ratio.

"In the past, medicine has been reactionary. We wait for people to get sick, then we treat the disease," says Peter D. Meldrum, CEO of Myriad Genetics Inc. (MYGN ). "The majority of drugs on the market treat only symptoms, not causes."
Read further:
BusinessWeek: Biotech, Finally

See also:
Analysis: NeuroMetrix Inc (NURO)

Update 2: Live Action: Long Select Comfort Corp (SCSS)

SCSS warns for the next quarter, reaffirms full year guidance. Shares trading at $21.50 (-3.07%). A little bit bad news, but I am not going to sell. Full year guidance is still OK and it is a longer term trade. I see it recovering soon from this fall. I'll keep my soft stop around $20.

Briefing
Live In Play
14-Jun-05 16:13

News about Select Comfort (SCSS):

sales growth is still expected to be in the range of 15-20%
2005 sales growth is expected to be at the high end of range; expects EPS between $0.98-1.06, Reuters consensus is $1.03, reaffirms full year sales and earnings guidance
Q2 to be in line with full year
revises Q2 EPS guidance 2004 Q2 EPS (see update below) to $0.14, Reuters consensus is $0.19
Read further:
Briefing: Live in Play (SCSS) (paid subscription required)

See also:
Update: Live Action: Long Select Comfort Corp (SCSS)
Live Action: Long Select Comfort Corp (SCSS)

Update (June 14, 2005 5:23 PM):
Briefing: Co had revised 2Q04's EPS to $0.14, not 2Q05 guidance.

Futures Training Session

Bo Yoder writes that he helds a free (sponsored) online training session for traders who are interested in trading index futures intra-day.

It seems, that the class is full, I don't know, if they let more people to attend, but you can try to sign up if you are interested.

Read further:
Gross Speculation: One last reminder that...

Update (June 14, 2005 1:25PM):

Comment from Bo Yoder:
I spoke with the folks at Real Tick today, and the class is indeed full. We have reached the maximum number of users and it seems they are unable to increase capacity. If some folks don’t show or there are cancellations they will let those on the waiting list know. Sorry if you missed the cutoff!
So, you can disregard this post, there is no point to sign up anymore.

Today's Volume Movers

Briefing
Live In Play
14-Jun-05 12:42

Movers with high volume (today's volume already above average daily volume): CFW, SIFY, ANCC, SCLN, LONG, POCC. Possible candidates for trading.

Read further:
Briefing: Live In Play: Unusual Volume Movers (paid subscription required)

Update 2: Google (GOOG)

Keep a close eye on Google (GOOG) today! GOOG is currently trading at $277.85 (-1.73%). Yesterday's low is at $276.52. Until Google stays below $280 level, there is a high possibility to fall down to $260. But be careful, Google made a false break-down yesterday, and then raised quickly back to a little higher and safer levels again.

I consider shorting GOOG (or buying put options) if I see more weakness.

Stock Chart: Google (GOOG)
Chart courtesy of StockCharts.com.

See also:
Update: Google (GOOG)
Dot-com mania, part II?

Some Reading for Options Traders

I found a link to Options Trader Magazine on GalaTime blog. It is possible to sign up (only name and e-mail required) and get free monthly issues until April 2006. I took a quick look and found at least some of its content interesting.

See also:
Options Trader Magazine

Monday, June 13, 2005

Live Action: Long NeuroMetrix Inc (NURO)

I would go long with NeuroMetrix (NURO) at $16.33 at the moment. See the links for reasons, there is also more information about NURO.

This trade is not with real money, I am just checking my trading strategy.

Update (2:49 PM, June 13 2005):
Positive volume spike today.

This is mid- or long-term investment, not a day or swing trade. Anyway, I may consider closing the position sooner, if the shares should surge, but I would probably buy them back lower levels if possible.

See also:
Update: Analysis: NeuroMetrix Inc (NURO)
Analysis: NeuroMetrix Inc (NURO)

Stock Picks by Martin Zweig

There are some stock picks on Forbes site by Martin Zweig, a successful investment guru and chairman of Zweig Funds.

Ten Stocks Marty Would Love
Forbes

Matt Rand
06.10.05, 4:26 PM ET

Back in the 1980s and 1990s, one of the most popular and successful investment gurus and newsletter editors was Martin Zweig. In fact, he may be best known today for owning the most expensive apartment in Manhattan, a $70 million triplex penthouse on top of the Pierre Hotel on Central Park at Fifth Avenue.

According to the American Association of Individual Investors, its "Martin Zweig" stock screen has been its best-performing stock screen among the more than 50 it has tracked for the last seven years--up 1,245% since 1998.

One of the main tenets of his approach is low price/earnings multiples, but not super low. Zweig doesn't like stocks with P/Es less than 5. Zweig also looks for companies with strong and persistent earnings and sales growth.

Validea's Marty Zweig Picks: CNC, HDB, FCBP, ...
Read further:
Forbes: Ten Stocks Marty Would Love

Off-topic: Live Shoutbox

I just added a nice feature to my blog – a shoutbox window (you can find it on the left sidebar, below Quick Direct Links section). You are welcome to discuss anything that is related to stock markets, this blog or why not even have some social communication if you find one to talk with! :) If you have any fresh news, great stock picks, feel free to make a quick post. Keep in mind, that shoutbox posts are wiped out after a while, so if you have anything important to say, make a comment under a blog entry or send me an e-mail.

I don't know, how it comes out and whether I'll keep it on my site, but let's just test it for a while.

Growth stocks outperforming value stocks

Karyn McCormack writes in BusinessWeek Online blog that growth stocks have started to outperform value stocks.

Gunning for Growth
BusinessWeek Online
Karyn McCormack
June 08, 2005

Brian Gendreau, investment strategist for ING Investment Management points out in his most recent research note that the Russell 1000 growth index has risen by almost 7% since Apr. 20, when the S&P 500 index hit a low. Meanwhile, the Russell 1000 value index has risen 4.8% and the S&P 500 has gained 5.4% since that date. In fact, Gendreau says, growth stocks have been beating value stocks during the entire second quarter, reversing a trend that has lasted for most of the last five years.

This is not just a fluke, says Gendreau. He argues that growth stocks will continue to beat value stocks, based on three indicators. First, the yield curve spread has been flattening, which is typical in economic expansions. The second indicator is high capacity utilization. The third sign is earnings yield.
Read further:
BusinessWeek Online: Well Spent: Gunning for Growth

Watch out, Taser (TASR) is flying!

Today's news about Taser (TASR):

1. Taser receives $1.4 mln order from the United States military.

2. Taser discussed negatively in Barron's: Taser is also the tgt of a raft of product-liability actions, including 6 training-injury suits and 11 wrongful-death suits. With sales down sharply and legal battles looming, even at $10, Taser would stack up as a risky spec. Specifically, in its entire 4-year span as a public co, Taser has earned less than $25m. Yet in the past 2 years alone, insiders have sold stock worth a cool $138m. Chmn Phil Smiths, CEO Rick Smith and president Tom Smith sold stock for a whopping $110m.

And what is Taser doing today on pre-market? Whooa... trading at $11.61 (+7.10%). OK, guys, which one shows better the future of Taser? A tiny $1.4 million contract or the fact that the CEO sells a huge amount of shares?

Taser (TASR) is a stereotyped hype, there is no doubt. Playing hypes may be killing (but also very profitable) when they are in up-trend, but 2 times as killing when they are in down-trend. If you really want to buy hypes, just go and find one! But don't buy a fading ex-hype. If you really (I mean, really) know what you are doing, go ahead, there is nothing wrong with playing on hypes, but I have heard enough stories how people have lost all their money in these situations).

Look at the chart below and ask yourself reasonably: do you believe that Taser is heading up to $30 or rather down to $5?

Stock Chart: Taser (TASR)
Chart courtesy of StockCharts.com.

Read further:
Briefing: TASER receives $1.4 mln order (paid subscription required)
Briefing (Barron's): TASER discussed negatively in Barron's (paid subscription needed)

Dot-com mania, part II?

CNN Money writes about Internet business stocks and finds that the success of Google (and bounces of Yahoo and E-Bay) is fundamentaly different from the Internet bubble in the late 90's. I strongly agree that you can't compare Google with some money burner start-up from 1999, but I would still be a little careful when investing into a fundamentally strong stock which is raising parabolic.

Dot-com mania, part II?
CNN Money
By Paul R. La Monica, CNN/Money senior writer

June 13, 2005: 5:19 AM EDT

The dot-com mania of the mid-to-late 1990s helped make some business people and investors fabulously rich, at least on paper. But the tech-stocks crash of March 2000 left many investors with stocks trading at a fraction of their all-time highs, and in some cases, worthless.

Since Google went public in August 2004 its shares have more than tripled, reminding many of the investor fervor of the late 1990s. And shares of the Internet's version of the Big Three -- Amazon.com, eBay and Yahoo! -- have all bounced back sharply from their post-bubble lows in the past few years.

Kessler noted that most of today's Internet success stories are survivors, older companies that are now profitable and have strong balance sheets, and not start-ups that weren't earning a dime.
Read further:
CNN Money: Dot-com mania, part II?

News: Sprint FON Group (FON)

Barron's highlights Sprint FON Group (FON) and says its shares could sharply move for $30. Keep your eye on FON today, it might offer some trading possibilities.

Why Investors Fail?

There is a nice post on The Big Picture blog telling why investors underperform the market.

Why Investors Fail
The Big Picture

June 12, 2005 08:40 PM
"Individuals have historically underperformed the markets, earning just 2.6% vs. the S&P 500 gain of 12.2% between 1984 and the end of 2002. Research in the U.S. has shown that this dramatic underperformance comes as a direct result of client behaviour, or more specifically, the attempt to avoid bad performance while seeking out better returns."

What's the cause of this underperformance? Assuming there is an appropriate asset allocation plan in place (Diversification in styles, geography, managers, and appropriate weightings for each security), what is the dominant problem for most investors?
In a word, EMOTION.
Read further:
The Big Picture: Why Investors Fail

Sunday, June 12, 2005

Update: Analysis: NeuroMetrix Inc (NURO)

I found another post about NeuroMetrix (NURO) on MoningStar site.

NeuroMetrix Announces Physician Use of One Millionth NC-stat Nerve Conduction Study Biosensor
MorningStar
Business Wire
06-02-05 09:00 AM EST
Neuropathies affect over half of the 18 million people with diabetes in the U.S. Low back pain and related conditions are the second most common reason for seeing a physician. There are as many as 5 million people in the U.S. with carpal tunnel syndrome.

"We are very proud to have reached this important milestone in our Company's development," said Shai N. Gozani, M.D., Ph.D., NeuroMetrix President and CEO. "Achieving one million biosensors used with the NC-stat System confirms that the technology and approach are becoming a standard of care for the diagnosis and management of neuropathies by physicians.

We believe this milestone reflects both our present market position and also the opportunities for continued expansion of our business."
Read further:
MorningStar (Business Wire): NeuroMetrix Announces Physician Use of One Millionth NC-stat Nerve Conduction Study Biosensor

See also:
Analysis: NeuroMetrix Inc (NURO)

Analysis: NeuroMetrix Inc (NURO)

NeuroMetrix Inc (NURO) is a medical device company, engages in the design, development, and sale of products used to diagnose neuropathies.

NeuroMetrix (NURO) is a late IPO, which came public less than a year ago at $8. The shares closed Friday at $16.04, so it has performed very well since the public offering.

The Company’s flagship product, the NC-stat® is a nerve conduction-testing platform that has been on the market since 2000. The NC-stat is used by orthopedic surgeons, neurologists, physiatrists, rheumatologists, internal medicine physicians, occupational health physicians, pain medicine physicians, general practitioners, and others, to assist in the diagnosis or exclusion of peripheral nerve disorders.

NeuroMetrix announced strategic relationship with Eli Lilly (LLY) to increase awareness and understanding of diabetic peripheral neuropathy, this should improve the sales of NeuroMetrix' products.

NC-stat System is used in 2.400 health care facilities, which is a tiny number according to analysts, because there are tens of millions annual visits related to nerve pathology.

According to Yahoo Finance, analysts estimate earnings of $-0.06 for the current quarter and $-0.17 for the year. For next year, the average estimate is $0.19. For year 2007 $0.70 (according to Ivestor's Business Daily). The revenue is growing solidly throughout the years.

Stock Chart: NeuroMetrix Inc (NURO)
Chart courtesy of StockCharts.com.

NeuroMetrix shares have raised from $9.12 to $16.04 (+75.9%) in 2 months, so it might be overbought at the moment and it is wise to wait some correction before buying. But if the shares should brake the all time high at $17.50, it's also good point to go long.

Tomorrow's (Monday, June 13, 2005) Investor's Business Daily covers a write-up about NeuroMetrix, which may give a little boost to NURO shares.

It’s A Test Of Nerves For Market
Investor's Business Daily
by Amy Reeves
June 13, 2005
In addition to ease of use, the NCStat offers a notable advantage in cost. Traditional nerve conduction machines cost $40,000 to $70,000. NC-Stats go for $4,000 a piece.

NC-Stat’s sales are still ramping up, so NeuroMetrix has yet to turn a profit. Analysts /---/ see 2007 earnings hitting 70 cents.

Despite the small installed base, NeuroMetrix makes a lot from disposable sensors for each test. In the first quarter, 88% of the firm’s revenue came from those sensors.

Analysts see plenty of room for growth in its current markets.
Read further:
Investor's Business Daily: It’s A Test Of Nerves For Market (paid subscription required)

See also:
Yahoo Finance: Profile for NeuroMetrix
NeuroMetrix: About the Company