Hot Stocks to Buy [Swine Flu Stocks]

Swine Flu Related Stocks - Which Swine Flu Stock is a hot buy?

• Risk Level : 10
• Profit Potential: 8
• Loss Possibility: 10

The swine flu outbreak is sweeping the world and it’s affecting everything from travel, energy hotels, sporting events and restuarants.  Pratically ever sector is affected by the swine flu outbreak.  This is something we did not expect and the market is starting to get affected by it’s outbreak.  As the overall market decline due to the swine flu outbreak, there is one sector that is actually doing well.  If you are a risk taker and would like to gamble on some hot stocks in the field of flu related vaccines, the following index will make for an attractive shorterm stock play.  We expect these swine flu related stocks to be hot for several weeks as the outbreak is only at it’s early stage. One stock we would like to make note of is AVII. In our opinion AVII did extremely well during the bird flu outbreak. AVII has not risen as much as the other RXFLU stocks and we see potential for it to double or triple it’s price in the short term. There is also a risk that it can lose half it’s value if the current influx of swine flu subsides. The RXFLU index compose of the following stocks.

Swine Flu Related stocks should be bought and sold with extreme caution.  It can rise 100% one day and fall 90% the next.  Becareful in your decision to buy or sell these stocks.

RMBS - Rambus Inc.

[RMBS] Rambus Incorporated - Hot Stocks to Buy Entry Price $9.75 - $10.75

• Risk level: 6
• Profit potential: 8
• Price Target: $20 - $22
• We expect RMBS to outperform in the near and long term

We are adding Rambus Incorporated (RMBS) to our Hot Stocks to Buy list and for good reasons.  On April 23, 2009 Rambus released their earnings with the following results:

• First quarter loss of $17.4 million (-.17 cents a share), Last year they had a loss of $14.4 million (-.14 cents a share).  Similar quarter last year the net loss was $15.5 million.
• Revenue was down 31 percent (-$27.3 million) from same quarter last year.

As dismal as the earnings report were, it came pretty much in line with what many analysts were expecting.

We see Rambus as an enconomy busting stock that will endure most of the turmoil expected in the world economy.  Being a safe harbor from the current state of the economy makes it a hot stock to buy.  While their continued battle with the three Amigo’s continue and verdict remains uncertain, we do see some positives for Rambus this coming year.

• The major positive is Microsoft’s expected release of their new Windows 7 operating system.  With the release of any new operating system from Microsoft, there is always an increase in new computer hardware purchase and with every new computer, RAM is required.
• Another positive from the Windows 7 release is the operating system is a 64 bit operating system.  64 bit operating systems can make use of more ram than the current 4gb constrained by 32 bit systems.  This will lead to increased RAM sales.
• The increased of online games and higher powered games will also help Rambus in their RAM sales.

We see a very bright future for Rambus this coming year and expect to see the stock double by year’s end.  Our entry price for this stock is between $9.75 - $10.75.  Our 12 month target price is $22.

As always we encourage you to do your own diligent research prior to making any purchase or sale of a stock.  Please read our disclaimers under “Terms” for more details.

HANS - Hansen Natural Corp.

[HANS] Hansen Natural Corporation - Hot stock to buy entry price: $39.5 - $42

• Risk level: 7
• Profit potential: 7
• Price Target: $65 - $75
• We expect HANS to outperform the market in the near term with moderate downside risk.

We are placing a hot buy recommendation on Hansen Natural Corporation for a few reasons.

• Hansen Natural Corporation develops, markets and distributes beverages worldwide. Their flagship product is their Hansen natural drink products and Monster energy drink. Today we decided to add Hansen (HANS) to our hot stocks to buy list for the reasons listed below:
• The health craze is pushing healthy drinks like Hansen’s all natural to new levels. This will not change as more and more people choose to drink healthy natural drinks over carbonated sodas like Coke and Pepsi. (Recent report by Beverage Digest shows carbonated softdrink sales volume to decline by close to %3 percent while small companies like Hansen saw an increase in sales.
• Monster “Hitman Sniper” is a great tasting drink and has been a favorite of the local teenages and young adults, as observed at malls and dance clubs.
• HANS’s stock chart shows a very bullish picture. At its current projection, HANS should expect to see a rise to $55 in the next few months. The breakout to new highs on April 23rd also points to a very bullish sign.

While most analysts are downgrading HANS, we at hot stocks to buy have decided to place a HOT buy on HANS with a price target of $65 within 6 months.

AMD - Advanced Micro Devices Inc.

[AMD] Advanced Micro Device Stock - Hot stock to buy entry price: $2.85 - $3.35

• Risk level: 6
• Profit potential: 7
• Price Target: $5.5 - $6
• We expect AMD to outperform the market in the longterm.  Expect a little price drop after earnings date due to negative earnings report.  Will represent a good buying opportunity.

We are selecting AMD as our next Hot Stocks to Buy.  On April 21st, AMD reported deeper than expected 1Q loss of $416 million.  After their report and disappointing guidance AMD sold off in afterhours and loss approximately 5% in share price.  The .66 cents loss was not as wide as expected and some of the loss can be attributed to one-time charges due to the company’s biggest restructuring in it’s 40 year history.  Without the one time charges, AMD would have had a loss of 62 cents per share.  Their sales for the year dropped 21 percent to $1.18 billion, which was above the estimates of $978 million.  Reasons why we are adding AMD to our hot stocks to buy portfolio:

• As bad as their earnings report seem, it’s actual beat the esitmates of most analyst and in our view should be seen as a positive instead of a negative.
• The afterhour drop of 5% was mainly due to feelings that they may lose market share to Intel.  This was something that CEO Dirk Meyer quickly knocked down and we agree.  We do not expect AMD to lose much market share to Intel in future quarters as more computer buyers look for lower cost systems which AMD can help supply with their less expensive CPUs in comparison to Intel’s.
• The drop in afterhour and possible drop on Wednesday morning will be a golden opportunity for buyers to purchase the stock at a discount.
• Newer computers will be required as Windows 7 is released during the 4th quarter of 2009

We plan to add AMD to our hot stocks to buy portfolio at a price range between $2.85 - $3.35.  over the next few quarters, we expect to see a price of $5.5 - $6 per share.

As always, please perform your own due diligence and make your decisions based on that due diligence.  Our stock portfolio is for entertainment purposes and do not represent a recommendation on the actual stock.

No Hot Stocks Recommended Today

The conditions of the banks are just too unstable for trading on Tuesday.  We are recommending a cautious approach to trading on Tuesday.  Signs to look for on Tuesday:

• Early morning sell off and recovery is a good sign
• Early morning rise and sell off is a really bad sign - consider liquidating some of your holdings.
• Flat thoughout the day - is a dangerous sign - consider liquidating some of your holdings
• Down and gradually down throughout the day is an extremely bad sign.  Sell and sell fast!

Consider waiting out until Wednesday for better market conditions.  This is just my opinion, please take it for what it is and make your own decisions when it comes to investing.

CSCO - Cisco Corp.

[CSCO] Cisco Systems stock - Hot stocks to buy entry price: $17 - $18.5

• Risk level:  3
• Profit potential: 6
• Price Target = $25
• Cisco systems is rated a minimal risk stock

We have a special stock that we are adding to our Hot Stocks to Buy portfolio. Cisco Systems will be added to the portfolio as we believe this to be the best positioned stock to own in the technology hardware arena. Cisco as with the rest of the market has been hit with the financial meltdown of 2007. We feel that Cisco was unjustly taken down with the rest of the market and is on the right path to recovery. After hitting a low of $13.62, Cisco has bounced back quite nicely to $18 a share. We expect the stock to continue it’s upwards trend to approximately $25 by the end of the year. The following are highlights of recent events affecting Cisco:

Analyst recent upgrades and downgrades:

• March 11, 2009 – Wedbush Morgan Initiated at Hold
• March 2, 2009 – Argus Upgraded from Hold to Buy
• Feb 3, 2009 – Stifel Nicolaus Upgrade from Hold to Buy

Future stock events:

• May 6^th, 2009 – Earnings Announcement

Stock positives:

• Cisco is leveraging India’s work force to lower cost on engineering help.
• We are expecting Cisco to post good numbers on their earnings announcements coming up on May 6^th as their projections have been lowered dramatically.
• EPS for the next 5 years is expected to be about 8.6%
• Microsoft’s release of Windows 7 in the fourth quarter of 2009 will add a boost to technology stocks. This will also lead to infrastructure changes in many organizations.
• Obama’s plan to pump money into the education technology field will lead schools to buy more technology.

Hot Stocks to Buy recommends taking a medium holding in Cisco systems as it is a stable investment with strong growh potential.  Cisco’s stock price may not rise 20% on a daily basis but it’s gradual increase will be realized at the end of the year.  Our stock price target on Cisco systems by years end is $25.  We recommend you perform your own due diligence prior to making any stock purchase.

DNDN - Dendreon Corp.

Original Upgrade to Hot Buy on 4/18/09.
[DNDN] Dendreon stock - Hot stocks to buy entry price: $17 - $18.5

• Risk level:  10
• Profit potential: 8
• Price Target = $50
• Very risky in the near term, keep an eye on April 28th 2:20pm (CT)

On April the 16th we added Dendreon Corp. (DNDN) to our hot stocks to buy portfolio at the price of $18.15.  Below you will see a few pointers as to why we have chosen to add Dendreon to our list of Hot Stock to buy.  We’ve followed this stock for years and feel this is a great time to enter into the stock for those who have missed the previous purchase price of below $5.  The recent news on Dendreon’s IMPACT results is just what the company needed and if the details on the news is as expected, this stock can see a rise to above $35 in the short term.  Please also consider the risk that if Dendreon’s news on the 14th of April is revealed to be misleading, this stock can take a massive plunge back to below $5.

• Upgraded to from Sell to HOLD by Rodman & Renshaw on April 14th, 2009
• Upgraded by from Mkt Perform to Mkt Outperform by Brean Murray on April 16th, 2009
• Potential buyout candidate by big pharma (possibly Merck)
• On April 14th Dendreon issued a press release announcing that the pivotal Phase 3 IMPACT study of Provenge in men with advanced prostate cancer met its primary endpoint of improving overall survival compared to placebo control.
• On April 28th (2:20pm CT)the results from the IMPACT studies will be presented during a plenary session at the American Urological Association’s Annual Meeting
• Dendreon’s other drug Neuvenge is on the horizon

Hot Stock to Buy recommends taking a small holding in Dendreon and increasing the holding on any non news related dips in the next week.  Dendreon is an extremely high risk stock with high potential in the near term.  Price target within  6 months is $50.

BAC - Bank of America Corp.

BAC - Hot stocks to buy entry price: $10.25

• Risk level: 10
• Profit potential: 8
• Price Target = $15
• Bank of America is rated an extreme risk and will move with any news

Today we have chosen BAC for our Hot Stocks to Buy. BAC represents a great opportunity for long term investors for several reasons.  The first reason is they are the leader in the banking industry and they will come out of this crisis in the strongest position. Another reason is, the government will do anything and everything to keep banks from crumbling and as you can see from the past year, banks have received all the sweetheart packages in bailout funds. Other reasons can be read below as it is much better explained by experts in the industry. Hot stocks to buy thanks Yahoo, Bloomberg and other sources for helping with this posting.

Positive Comments from Former Oppenheimer Analyst Meredith Whitney’s recent comments:

• “Layoff on shorts…The fundamentals are not getting any better but capital ratios should get better…”"
• Bank earnings may show improvement in the first quarter, though the sector still has far to go in recovering from the credit crisis..”
• “I think you’ll see a directional turn, Banks will make money, some as little as a penny a share, but they won’t lose money.”
• “The banks should be seeing some benefits from the revised mark-to market rules in the first quarter.”

A Positive Article from Bloomberg:

Covering Losses

Bank of America is cutting more than $7 billion in annual expenses after its acquisitions of Countrywide Financial Corp., formerly the largest U.S. home lender, and Merrill, the world’s largest securities brokerage.

Bank of America’s expected pretax earnings of $49.3 billion in 2009 exceed the $38.3 billion in total losses likely to be recognized over the next few years, Fox-Pitt Kelton Cochran Caronia Waller analyst Andrew Marquardt wrote in a report last month. The bank has already recognized $31.7 billion in losses by marking down the value of loans and securities, he said.

“Based on our estimates, it would take less than a year to cover estimated remaining loss content,” Marquardt wrote in the report. He rates the bank at “outperform.”

An Investor’s report on best overall bank to invest in. BAC is rated best overall.
BAC, JPM, WFC and C are largest four US banks.

At this moment, let us assume (I am 99% sure) that all four will survive this crisis and back to normal level as years 2006 and 2007.

First let us check their historic EPS

Company 2006EPS 2007EPS Aver (07,08)

• BAC 3.35 4.66 4.005
• JPM 4.5 4.17 4.335
• WFC 2.4 2.5 2.45
• C 0.75 4.3 2.525

Now Let’s check the stock dilutions:

Company Dilution shares (Bn) Total Shares Share Before dilution % dilution

• BAC $10B @ 22 = 0.455 6.4 5.945 7.1%
• JPM $10 @ 42 = 0.238 3.76 3.522 6.3%
• WFC $10B @ 27 = 0.370 4.24 3.870 8.7%
• C $57B @ 3.55 = 16.06 21.57 5.510 74.5%

Next, let us project the EPS in future (say 2011 to 2012)

Company EPS before dilution EPS After Dilution

• BAC 4.005 3.721
• JPM 4.335 4.06
• WFC 2.45 2.236
• C 2.525 0.645

Finally, let us calculate the potential stock price in future and % gain from their current stock price

Company EPS before dilution EPS After Dilution 2007 Stock high Mutipler Expected 2011 Stock Price Current Stock Price % Gain from now

• BAC 4.005 3.721 55 13.733 51.094 10.44 389%
• JPM 4.335 4.060 53 12.226 49.644 32.56 52%
• WFC 2.45 2.236 44 17.959 40.157 19.55 105%
• C 2.525 0.645 57.00 22.574 14.563 3.97 267%

By above simple comparison, at the moment, BAC is the most undervalued stock among the four.

The entry price that we have started on this stock is $10.25. We are looking for at least a 50% gain on this stock in the near term (within 6 months). Any entry below $11 is recommended in the near term.

We wish you good luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.

GERN - Geron Corp.

[GERN] Geron Corp. - Hot Stocks to Buy entry price $5.10

• Risk level:  7
• Profit potential: 9
• Price Target = $11
• Geron is a medium risk stock with maximum profitability
  • Geron is the known leader in stem cell research and is the biggest
  • Geron and other stemcell companies did not participate in the recent runup by financials and every other market industry
  • Geron was oversold
  • Secondary offering was at 6.6 - 6.85 meaning the large investors putting money into the secondary must have a strong belief that the technology works and are willing to gamble at such a premium price

Today we examine a stock that we feel is worthy to be added to our Hot Stocks to Buy list.  The first hot stock is GERN (Geron):


We are recommending GERN for a few reasons.  The first reason is that we feel it’s been oversold from it’s high of above $8 a share in early January.  The main factor for a selloff was due to a secondary offering that was made on Feb. 12th, 2009.  The secondary was for 7.25 million shares at a price range of $6.60 - $6.85.  This secondary offering plus an article from TheStreet.com’s columnist Adam Feuerstein encouraging share holders to sell the stock, pushed the stock from above $8 to under $4.5 in just a few days.  These two reasons may be valid for a 10 to 15% point decrease but definitely not a 50% hair cut.

Reasons GERN is added to Hot Stocks to Buy

The entry price that we have started on this stock is $5.10.  We are looking for at least a 125% gain on this stock in the near term (within 6 months).  Any entry below $6 is recommended in the near term.

We wish you  luck on  your investments and as always do your own research prior to purchasing or selling a stock.  We make recommendations based on our own research and this site is solely for the purpose of entertainment reading.  Thank you for visiting Hot Stocks to Buy.