SHREVEPORT, La., April 4, 2005 (PRIMEZONE) -- StockPickReport.Com (IARD #119079, http://www.stockpickreport.com -- the web's only non-mainstream stock rating service), rates Lucent, Lexar Media Inc, Xybernaut Corp, Merck & Co Inc.
STOCKPICKREPORT RATINGS:
Lucent (NYSE:LU) -- STRONG BUY
http://www.stockpickreport.com/abrating.php?sym=LU
Lexar Media Inc (NASDAQ:LEXR) -- SELL
http://www.stockpickreport.com/abrating.php?sym=LEXR
Xybernaut Corp (NASDAQ:XYBR) -- WEAK SELL
http://www.stockpickreport.com/abrating.php?sym=XYBR
Merck & Co Inc (NYSE:MRK) -- BUY
http://www.stockpickreport.com/abrating.php?sym=MRK
Words of Encouragement Don Harrold, Senior Analyst
Folks, we know you'd like some "good news" about the market. It's been somewhat difficult to continue with our "the market is over valued" commentary because we know that statistically hardly anyone "shorts" or even sells stocks they own. No matter how "right" we are, it's no fun to give you news that you -- statistically -- won't like.
The market is looking better on a "daily chart" basis, but weekly charts still show a "roll over" in effect. So, we hope you'll see us as an accurate messenger, and prepare for the moment we say...
"TODAY'S THE DAY TO BUY."
The fervor we displayed in the last couple months as the market dropped will be matched (or bettered!) when we see an imminent up turn ahead
Why We Still Like Oil and Gold Neil Batho, Guest Columnist
Last week we saw a huge rally in oil stocks. Out favorite oil stock, Suncor, rallied 10% over Thursday and Friday to close at an all-time high of $41.50. If you've been reading the past few weeks you should already have a position in this stock.
We want to add another Canadian recommendation today. That's Petro Canada (PCZ). Why? It has a very low P/E of 11. Also, it has hit its trendline in a nice uptrend, and it also has an interest in the Athabasca Oil Sands, the largest oil reserve in the world. With a P/E that low an increased demand for the stock could drive that P/E up to 15 easily. That would mean a 50% gain in the stock.
You may ask why we like the oil sands stocks so much. Well besides their involvement in the biggest reserve in the world, it costs a few more dollars per barrel in order to separate the sand from the oil. You see, the oil is trapped in the sand. So as the price of oil rises this few dollars per barrel becomes less and less significant to these operators. So as the price of oil rises, these stocks should rise more than standard operators. And, we are bullish on the price of oil.
So here we are with the major indices down for the week, and down for the year and it seems like oil stocks are the only place to be. That, and maybe Kraft Foods it seems. Well, there's always a bull market somewhere and if it's going to be in oil then that's the place to be.
"Over the long term low-P/E stocks outdo high-P/E stocks. That's because growth stocks are more prone to collapse after bad news." That quote was from an article in Forbes. It seems like 2000 all over again. Well it's true. Low P/E stocks ARE the way to go in a very shaky environment like this. Look at some of the high-flying biotechs that get creamed when bad news comes out. They can get cut in half in just one day.
Have you looked at RYTPX yet? This could be the best move you make all year. Go to www.rydexfunds.com and find out how to buy it. For every percent loss in the S&P 500, you'd get a 2 point gain. Couple that with some good oil picks and you could be the one smiling at the Christmas party this December when everyone else is saying how they lost so much in the market that they had to put their retirement off another few years. Not only that . . . they'll say how they really HOPE the market goes up or they don't know what they're going to do! They'll even say their broker told them to "Stay the course!"
The markets are driven by fear and greed. Of course everyone knows that. You know what though? Fear and greed are good things. They are good emotions to have. The one emotion you never want to have is HOPE. "Gosh, I hope this stocks turns around or I'll really take a bath". "I hope our retirement account turns around or I'll have to work another year." So, never hope. If you are hoping about any stocks in your account, then get out. You can't hope a stock back up.
Another tip I'd like to give is that you should never trade for money. Don't think about the things you will buy when a stock goes up, or what you lost when a stocks goes down. Just follow a system. Ride your winners. Cut your losers. Make the right decisions over time and then you'll have the money for a new BMW, or a new boat. But, never trade FOR the BMW or the boat. If you do, you'll be hoping. If you trade and disconnect from the actual reality of the money, and make the right decisions and follow the rules you'll be driving that BMW to your boat. Overall, it usually only takes a few strategic moves a year to do well. In 2000 was to sell tech and to buy value. Right now we're saying its oil and RYTPX. We're also saying to sell your long bonds (we said that weeks ago) and to buy gold under "GLD". Couple that with some strategic short term trades and you could do great overall this year.
There's still more downside to this market. Be careful out there. If you don't feel great about a trade, don't make it. The market will make you pay for it.
"There are old traders and there are bold traders. But there are very few old, bold traders."
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All commentary written by StockPickReport staff or contracted writers and analysts.
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If the links to our ratings above do not work, please use these:
Lucent (NYSE:LU) -- STRONG BUY
http://www.stockmonthly.com/LU-Stock-Research.php
Lexar Media Inc. (NASDAQ:LEXR) -- SELL
http://www.stockmonthly.com/LEXR-Stock-Research.php
Xybernaut Corp (NASDAQ:XYBR) -- WEAK SELL
http://www.stockmonthly.com/XYBR-Stock-Research.php
Merck & Co Inc (NYSE:MRK) -- BUY