WFC - Wells Fargo, Inc.
August 20, 2009 by Hot Stocks To Buy · Leave a Comment
WFC (Wells Fargo, Inc.)
- Entry price: $26.30
- Risk Level: 8
- Profit Potential: 7
- 1 yr Target Price: $28-$35
With investors feeling a little uneasy with the financial market it is hard to believe that Wells Fargo would be a hot stock to invest in, but it is because in June of 2009 the actual EPS is recorded at 0.23 higher than analysts at Yahoo Finance estimated. The same analysts also project next year’s quarter growth to be 131.6% and next year’s growth to 122.7%. Since March of 2009 there is an upward trend from $8.12 a share to the current price. On July 22, 2009 WFC reported revenue of $22.5 billion, up 28% (annualized) from first quarter. Wells Fargo net income of $3.17 billion was also up 81% from last year. WFC also reported net income applicable to common stock of $2.58 billion, up 47% from last year.
Since combining assets with Wachovia Insurance Services on July 1, 2009, Wells Fargo becomes the world’s fourth largest insurance firm and the largest bank-owned insurance brokerage in the U. S.
In addition to the positive growth trend, on August 5, 2009 Wells Capital Management has been selected by Nomura Asset Management to manage the new Emerging Markets Consumer Stock Fund. The fund was launched in Japan on July 24 and total assets exceed $1 billion, with strong subscriptions adding to the initial launch size of $740 million. The fund is distributed in Japan by Nomura Securities.
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.
AVII - Upgraded to Super Hot Buy
June 19, 2009 by Hot Stocks To Buy · Leave a Comment
[AVII] AVI Biopharma, Inc. - Hot Stocks to Buy Entry Price $0.99
- Risk Level : 10
- Profit Potential: 8
- Price Target 6 months: $2.75 - $3
- Price Target 12 months: $3.5 - $3.75
We originally added AVII to our Hot Stocks to Buy list on April 28th during the start of the Mexican Swine Flu outbreak. On April 28th, AVII was trading at .99 cents, which was low compared to their competitors. They were basically lagging behind the other Flu related stocks. Since April 28th, AVII has jumped more than 50% to over $1.50 per share.
We are upgrading AVII to a Super Hot Buy stock for a couple of reasons.
- Swine flu has not gone away and is actually growing in cases. We expect increased chatter in the coming summer months.
- Experts are expecting this year’s flu season to be worst than typical years.
AVII should do well in the current stock market environment as they are typically resistent to the Economy’s woes.
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.
TYP Direxion Daily Technology Bear 3X Shares
May 14, 2009 by Hot Stocks To Buy · Leave a Comment
[TYP] Direxion DAILY TECH BEAR 3X Shares - Hot Stocks to Buy Entry Price: $31 - $33
- Risk level: 6
- Profit potential: 8
- Price Target 1 - 4 Weeks: $43 - $45
Wednesday’s trading session did not look very promising for the overall market, those that took our recommendation to add FAZ to their portfolio on Monday is enjoying a nice 25% two day profit. Not bad at all!! Yesterday we added the Exchange Fund BGZ to the portfolio and it’s also enjoying a nice 6% profit. Well today we are still very bearish on the overall stock market and would like to add another Bearish Exchange Traded Fund to our stock portfolio. We are adding TYP to our stock portfolio and expect to see the technology sector fall between 6 to 8 percentage from their recent highs.
At this stage we can still assume that the overall market is taking profit from an extremely profitable two months. We are a little cautious as the timing of the recent market profit taking does create somewhat of a perfect storm for a major market slide.
- Market needs to have a 6 to 8 percentage point correction from a string of 9 consecutive positive weeks.
- May is traditionally the start of a poor period for stocks, hence the term “Sell in May and Go Away”
- Consumers are purchasing less, leading to poor retail numbers.
- Government is running out of ways to pump the market.
- Options expiration on Friday
If the stock market’s slide worsen during the next couple of days, be extremely careful with the stocks you are holding in your portfolio. This slide may end up being more than just a “healthy correction.”
As always 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.
BGZ Direxion LARGE CAP BEAR 3X Shares
May 13, 2009 by Hot Stocks To Buy · Leave a Comment
- Risk level: 7
- Profit potential: 8
- Price Target 1 - 4 Weeks: $50 - $55
We are adding another Bearish Exchange Fund to our stock porfolio for the short term as the market is looking very grim. Today’s unexpected slump in retail sales data is very disturbing in our opinion. The data confirms what Meredith Whitney has been saying all along that consumers are not buying and this will eventually lead to a bearish market.
In our opinion the proper way to trade this market is to short sell the stock market. Since we only recommend hot stocks, our play would be to buy BGZ, which is a short on the large cap stocks. Becareful though, this is shorting the large caps by 3X, so it’s a little riskier.
As always 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.
FAZ - Direxion Financial Bear 3X Shares
May 11, 2009 by Hot Stocks To Buy · Leave a Comment
- Risk level: 8
- Profit potential: 10
- Price Target 2 - 4 Months: $18 - $20 <--Correction
- Price Target 12 months: Strictly recommended as a short term play. <--Correction
- Risk level: 10
- Profit potential: 8
- Price Target = $50
- Very risky in the near term, keep an eye on April 28th 2:20pm (CT)
- 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
- Risk level: 10
- Profit potential: 8
- Price Target = $15
- Bank of America is rated an extreme risk and will move with any news
- “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.”
- 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
- 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%
- BAC 4.005 3.721
- JPM 4.335 4.06
- WFC 2.45 2.236
- C 2.525 0.645
- 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%
- 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
Since we are Hot Stocks to Buy and not hot stocks to short, we will improvise and buy bear Exchange Traded Funds (ETF). ETFs are basically a portfolio of stocks, bonds or other types of investments that are pooled together to list under one symbol so that it can be traded like a regular stock. We are adding Direxion Financial Bear 3x Shares to our portfolio, symbol FAZ. FAZ represents an intriguing ETF to own as it’s basically shorting the financial market. Since their closing high of $104.07 on March 9th, 2009, FAZ has dropped to a ridiculous low of $4.49 on May 8th, 2009. According to Yahoo’s Finance profile for FAZ:
“The investment seeks to replicate, net of expenses, 300% of the inverse daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified.”
We feel this is the best way to invest in a potentially down market. We are still positive on financials in the long term, but we do see a potential pullback 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.
DNDN - Dendreon Corp.
April 18, 2009 by Hot Stocks To Buy · 3 Comments
Original Upgrade to Hot Buy on 4/18/09.
[DNDN] Dendreon stock - Hot stocks to buy entry price: $17 - $18.5
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.
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.
April 17, 2009 by Hot Stocks To Buy · 1 Comment
BAC - Hot stocks to buy entry price: $10.25
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:
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)
Now Let’s check the stock dilutions:
Company Dilution shares (Bn) Total Shares Share Before dilution % dilution
Next, let us project the EPS in future (say 2011 to 2012)
Company EPS before dilution EPS After Dilution
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
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.
April 16, 2009 by Hot Stocks To Buy · Leave a Comment
[GERN] Geron Corp. - Hot Stocks to Buy entry price $5.10
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.
