Intuitive Surgical (ISRG)
Intuitive Surgical's (<a href=http://www.zacks.com/stock/quote/isrg>ISRG</a>) story is improving. A new product was developed as an upgrade to its da Vinci Surgical System. Furthermore, the company enjoys a virtual monopoly in robotic surgery without direct competition. <p> The company's razor/razor blade business model ensures recurring revenues even during difficult times. In the third quarter, earnings of $1.64 per share were higher than the Zacks Consensus Estimate of $1.45. Revenue growth was witnessed across all the segments. <p> We believe the company will continue leveraging its monopoly position in the industry. We reiterate our Outperform recommendation with a target price of $329.Synopsys, Inc. (SNPS)
Synopsys (<a href=http://www.zacks.com/stock/quote/snps>SNPS</a>) delivered mediocre third quarter results, with below-par operating performance. The 2010 guidance does not reflect any major growth. Although Synopsys is gaining traction from new products, acquisitions, and new EDA partnerships, but we believe these are unlikely to show results in the near term. <p> We believe Synopsys' time-based license model has good visibility and it has a strong balance sheet. On the other hand, the semiconductor industry has yet to stabilize and generate demand. Synopsys is facing customer concentration risk. <p> The industry-wide weakness is impacting its core business. We therefore downgrade the stock from Neutral to Underperform.Arthur Hill: 3 Items to Watch in 2010 – Emerging Markets and REITs lead 2009 – Commodities dependent on the Dollar and Emerging Markets – Rates set to rise in 2010 – Shanghai Composite could be leading the S&P 500 – Happy New Year
[[http://stockcharts.com/members/videos/|Link for today’s video.]] Today’s commentary will feature a few items to watch in 2010. First, I am showing a PerfChart with seven different ETFs representing...Medifast (MED): Mike Turner’s top pick for 2010
"My number one stock pick to start 2010 is Medifast Inc. (NYSE: MED), a weight and disease management company," says Mike Turner.
The editor of Mastering the Markets explains, "The stock has skyrocketed from the $5 area to over $30 in just the last nine months." Despite the gains, the advisor remains bullish on the stock's prospects.
"My proprietary analysis software rates this stock as a fundamental 'Strong Buy,' with an overall score of 145 out of 200 -- one of the highest rated stocks in my database.
"With regard to Medifast's fundamentals, I like the following:
- • The quarter-over-year-ago-quarter revenue growth rate of 45%. This is nearly twice the peer group average for MED.
- • Quarter-over-year-ago-Quarter Earnings Growth Rate of 14%, which is above the average of its peer group.
- • Its 5-year average annual sales growth is nearly 33%, almost 3 times the average of its peer group.
- • Its 5-year average annual net income is over 18%, compared with 14.41% for its peer group.
- • I consider any return on equity (ROE) of more than 15% as excellent. MED's ROE is over 23%, more than twice its peer-group average.
"From a technical analysis perspective, my program gives Medifast a score of 75 out of a maximum of 100. This places MED in the top 10% of the stocks I watch, and very near the top of that group. Specifically, I like the following:
- • The price trend for shares of MED has been moving higher for better than nine months. This trend is well above my system's trend-line and well above MED's 200-day moving average. This is indicative of a strong technical trend that shows no signs of abatement.
- • Institutional ownership is at 30% -- a large-enough chunk to convince me that the big traders believe this stock is heading higher.
- • The average share price of all the stocks in Medifast's Industry (Medical Equipment and Supplies) and sector (Healthcare) is moving higher. This is an indication that more money is likely moving in than moving out, helping to put upward pressure on MED.
"Disclosure: Mike Turner owns shares of MED either personally or via his managed account portfolio."
Leo Fasciocco: Blue Coat (BCSI)
"My pick for 2010 is Blue Coat Systems (NASDAQ: BCSI), which provides web security," says Leo Fasciocco, a technician who picks "breakouts" for The Ticker Tape Digest.
"Blue Coat, based in Sunnyvale, Ca., provides software and services for networking, with annual sales of $444 million.
"Its products enable its end user customers to secure their Internet gateways and remote computer systems by providing protection from malicious code, or malware and objectionable content.
""The company is benefiting from an expansion of its products. In 2008, BCSI acquired Packeteer, a provider of WAN traffic prioritization technologies. It most recently came out with an expansion of its Webpulse cloud service for Arabic web content.
"Looking out to fiscal 2011 ending in April, the Street projects a 44% jump in net to $1.30 cents a share from the 90 cents anticipated for fiscal 2010.
"The stock has been trending higher the past few months recovering from the bear market. The long-term chart for BCSI shows the stock with a cyclical tendency. It is now in the up trend part of its cycle. We see that as favorable for bulls at this time with the stock now trending higher.
"In our view, BCSI is an outstanding stock poised to breakout. It is holding in its base and poised to show massive earnings gains.
"Overall, we consider the stock an excellent intermediate-term play because of its strong profit outlookWe are targeting BCSI for a move to 36 after a breakout. A protective stop can be placed near 24 after a breakout."
Vivian Lewis: BCE (BCE)
Global expert Vivian Lewis, in Global Investing, explains, "BCE (NYSE: BCE), with its 6% yield, is a great buy. The Canada-based telecom company is a 'fallen angel'."
"I'm worried about the speculative coloration of the rise in stock prices globally since the bottom in March 2009. I do not think the markets will continue rising as they have since then, in a straight line to the upper right-hand corner of the page.
"I expect a serious correction because the global economy is still mired in difficulty. There will be more bad news taking share prices down in the coming year.
"To find stocks with ballast for the sell-off I expect in 2010, I am focusing on dividend payers and fallen angels. Fallen angels have risen less sharply than companies without damaged reputations, and pay out more.
"A year after crash of BCE, the Canada telco supposed to have been taken private by Ontario Teachers Pension Plan and US partners, who pulled out, the former Bell Canada is a good buy.
"The deal collapsed in the financial crisis. BCE CEO George Cope valiantly then cut 2500 jobs; did a wireless deal with Telus and bought out the remaining half of Virgin Mobile Canada; bought electronics store chain The Source; and boosted BCE dividends.
"BCE stock has risen 30% this year in loonies (C$s) and nearly 50% in US dollars. (It trades as BCE both in Toronto and on the NYSE.) But it is still a third cheaper than the former deal price target. That reflects investors' bad memories. Most analysts rate it neutral despite their expecting it to rise to $29.50.
"Further hurting BCE was the decision on Dec. 11 by Canadian regulators to allow Globalive to offer cellular phone service throughout Canada, reversing an earlier bar on the company part-owned by Orascom of Egypt.
"While the 2009 Xmas telephone market will not see many offers from Globalive, next year there will be cellphone price cuts. This could hurt BCE's gross margins, which are at an astonishing 74%.
"However, other telcos without BCE's land-line and multiple cellular options will be hurt more. I consider the stock a great buy yielding 6% with a probability the dividend will be raised."
AeroVironment (AVAV): Gregg Early’s top stock for 2010
Technology expert Gregg Early looks to AeroVironment (NDSQ: AVAV) as his top pick for the coming year.
The editor of The New Tech Investor -- and the soon-to-be-launched 2020 Portfolio -- explains, "Although the firm's miltary aerospace business should be strong, it is the firm's new 'clean technology' and energy efficiency projects that should be the real growth kicker."
"AeroVironment started off 2009 strong but it was hit in the spring by the global economic collapse and the irrational fears of investors -- both individual and institutional -- about what the future held in store for this unique firm.
"But 2010 should be the perfect climate for this company to continue is comeback and head to new highs.
"AeroVironment was founded by the father of human powered flight, Dr. Paul MacCready (1925-2007), the inventor of the human powered Gossamer Condor and Gossamer Albatross (which was flown across the English Channel and resides in the Smithsonian Air and Space Museum).
"MacCredy also developed the first solar powered aircraft, the Gossamer Penguin and the Solar Challenger. He also co-developed the GM Sunraycer, one of the first solar powered land vehicles.
"His revolutionary developments in aerospace design were put to good use in AeroVironment's unmanned air systems (UASs) division.
"The company's hand launched and micro UASs are deployed extensively in Iraq and Afghanistan with special forces units and well loved by the troops who rely on them.
"While general defense spending is on a downtrend, C4ISR (command, control, computing, communications, intelligence, surveillance, reconnaissance) budgets are increasing briskly across all the armed services as well intelligence and homeland security sectors.
"This business has sustained AeroVironment in the past and will continue to generate more business in coming years. But it Efficient Energy division is the real growth kicker.
"The company pioneered electric vehicle (EV) charging stations and has a long and abiding relationship with many car manufacturers as well as government agencies.
"As EV filling stations begin to dot the US landscape--and that development is already growing briskly in the West -- AeroVironment will be a significant player.
"Also, because the stimulus plan had the unintended effect of holding up cleantech projects as everyone waited to see who would get government money, it made 2009 a tough year for cleantech.
"Now that the monies have been earmarked, projects will move ahead faster now that companies have better visibility on where the funding will be derived. AeroVironment is a buy up to 35."
Fasciocco: Blue Coat (BCSI)
"My pick for 2010 is Blue Coat Systems (NASDAQ: BCSI), which provides web security," says Leo Fasciocco, a technician who picks "breakouts" for The Ticker Tape Digest.
"Blue Coat, based in Sunnyvale, Ca., provides software and services for networking, with annual sales of $444 million.
"Its products enable its end user customers to secure their Internet gateways and remote computer systems by providing protection from malicious code, or malware and objectionable content.
""The company is benefiting from an expansion of its products. In 2008, BCSI acquired Packeteer, a provider of WAN traffic prioritization technologies. It most recently came out with an expansion of its Webpulse cloud service for Arabic web content.
"Looking out to fiscal 2011 ending in April, the Street projects a 44% jump in net to $1.30 cents a share from the 90 cents anticipated for fiscal 2010.
"The stock has been trending higher the past few months recovering from the bear market. The long-term chart for BCSI shows the stock with a cyclical tendency. It is now in the up trend part of its cycle. We see that as favorable for bulls at this time with the stock now trending higher.
"In our view, BCSI is an outstanding stock poised to breakout. It is holding in its base and poised to show massive earnings gains.
"Overall, we consider the stock an excellent intermediate-term play because of its strong profit outlookWe are targeting BCSI for a move to 36 after a breakout. A protective stop can be placed near 24 after a breakout."
Innovative Communications Technologies, Inc. Acquires Pangea Networks, Inc.
SEATTLE, WA--(Marketwire - December 29, 2009) - Innovative Communications Technologies, Inc.
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