August Update

By: Steve Rubis

As our readers can see, here at Stock Research we have taken a summer hiatus. It seemed prudent to take some time off after the market correction back in May. At this time we are still completely invested in cash. This stems from a lack of time to do the research concerning buying bonds in my TD Ameritrade account. Nevertheless, we have taken this time to do research and have been able to fashion a list of possible purchase candidates. We have been reluctant to purchase since being burned on our Rite Aid trade back in July. This hesitancy is further exacerbated by the extremely high broker call rates; they continue to hover at or above 7%. Until rates come down most rallies will stall. The recent action in Arrythmia Research Technologies illustrates our concerns. It has tried to rally at least three times in the last three months. Each time the stock moves higher on a strong earnings announcement to only give back all of the gains.

Here is a list of stocks we are currently researching:

Hurco Companies – HURC
BTU International – BTUI
Boston Communications Group Inc. – BCGI
Overhill Farms – OFI
Winland Electronics - WEX

Pharmaceutical / Biotechs:
Nabi Pharmaceuticals – NABI
Pozen – POZN
Neurocrine Biosciences – NBIX
Cytogen – CYTO
Savient Pharmaceuticals - SVNT

Oil and Gas Drillers
Grey Wolf – GW
Parker Drilling – PKD
Petrobras – PBR

Book Reviews:
Reminiscences of a Stock Operator (we promised this a while ago!)
The 5 Keys to Value Investing by J. Dennis Jean-Jacques
Value Investing: From Graham to Buffett and Beyond by Bruce C.N. Greenwald, et al.
Discussions based on Valuation by McKinsey and Co.

I hope that you keep reading and that if you are a new reader that you will find some interesting ideas here. As an FYI to the new and old readers part of my hiatus is due to studying for the GMAT and trying to set up an investment club.