CC: worth a look

CC:

Holiday Season upon us again.... Plenty of excitement in the gaming and electronic industry. Not my favorite area to follow but an attractive extreme always catches my attention. Here is CC, looking oversold and even down 2% following my am observation. But, chart is attractive and many have plenty of fundamental data points.

While stocks remains beaten up at these levels worth taking a shot. Looking at an exit for near-term traders at $23.40 upside potential closer to $26.

I do acknowledge reading the following : Circuit City has been holding meetings with the Street recently in which it is warning that average selling prices for flat-panel televisions are falling faster than the company had expected.

Despite those facts or presumed facts – I like the risk/reward. Closer to risk at current levels than reward – for those that see my point.

Nature of trade: Low conviction relative to gold’s/ metals, semi’s and other tech.

Next quest: Sustainable Media company.

- Turkey - Week - 2006

Actionable Long Ideas: DD, QCOM, PALM, AV, MRVL, AMD; and recently GLW, FLSH and SNDK.

Outlook: From a Long-term standpoint, wise to seek bargains in late 1990’s theme of technology, telecom and media. (TMT) Although, a strong run since July’s low, there are investment opportunities. A rotation out of energy and into TMT – is a call I am watching for in 2007. Macro picture is unclear with steady complacency, relatively low volatility and clear message from the FED. Important to stay humble in recent run and potential continuing run

Key Themes:

• Favoring tech versus other groups in the market SOX VS OSX.
• Specific areas in Tech: Semi’s and Disk Drives .Continue to favor SNDK and FLSH as top names in that group.
• Healthcare timely investment to consider especially in small cap. Despite post election noise, a worthwhile early one should explore .
• Shorts to consider due to high p/s – and extended charts Focusing on financials as 2007 short candidates: CFFN: S&L name w/ P/S, Also follow up on mortgage shorts for names like ACF and CNO. Earlier in the year, continued to address the fundamental call of sub-prime lenders as overvalued themes.
• Media long-term bets and investments to consider given cycle opportunities emerging in the sector.

Recap of stock calls.

Posted JBLU long - $9 based on inverse oil play and turned out to be a profitable call. Although, I sold early with a $10-12 target, market momentum continues to pick up steam.

GG: at $21 level on oversold commodity related theme worked as well. Plenty of vilotility but got ahead of the game here.

CVS: Around $30 remains a value bet but no major stock moment but use opportunities to add. Overreaction on headline news w/ solid foundation and critical support levels.

My weekend Read’s :

http://www.aaii.com/commentary/articles/200608_stockstrategies.cfm

According to O’Shaughnessy, his new Small-Cap Growth and Value screen focuses on “cheap stocks on the mend.” The first criterion is an inflation-adjusted market capitalization between $200 million and $2 billion. O’Shaughnessy uses an average annual inflation rate of 3%, meaning that going forward he would increase the market capitalization criterion by 3% each year.

The additional criteria are:

• Price-to-sales ratio less than 1.5;
• Earnings higher than the previous year;
• Above-average three- and six-month price appreciation.