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New Profits In NICE Systems… And a New Recommendation
The ADR Alert
Tuesday, August 30, 2005
By Alexander Green, Investment Director
#76
** New Profits In NICE Systems… And a New Recommendation
Well, NICE Systems (Nasdaq: NICE) certainly gave us a nice ride, even if it was a short one.
Yesterday, the Israeli homeland defense company hit our sell stop at $44. As a result, we locked in a 10% gain in just over a month.
The rest of our international portfolio is also looking good. Marvell Technology (Nasdaq: MRVL), for example, has hit a new 52-week high over the last week. Move your sell stop up to $43 to protect your profits here.
Norwegian oil producer Statoil (NYSE: STO) announced last week that it has reached an agreement with Exxon Mobil for exploration drilling in the Gulf of Mexico. It, too, is closing in on a new 52-week high.
And today we have a new international stock to add to the portfolio: POSCO (NYSE: PKX).
Based in Pohang, South Korea – and formerly known as Pohang Iron & Steel – POSCO is one of the world’s leading steel producers.
The company’s steel sheets are used in the construction of buildings and bridges, railway rolling stocks, industrial pipes and automobile chassis. POSCO’s steel plates are used in shipbuilding, structural steelwork, power generators, mining equipment and offshore oil and gas wells. Its wire rods are used by manufacturers of nails, bolts, nuts, wires and welding rods. And its stainless steel products are used in the chemical, aviation, construction and food-processing industries.
With the economic expansion continuing here at home – and construction booming in emerging markets like China and India – the outlook for steel remains highly positive, even though prices have backed off a bit this year.
Second quarter sales at POSCO grew at 13%. Net profit increased 38%.
Of course, the South Korean steelmaker already has a long-term growth rate of 32%. Operating margins top 24%. And the stock is in a pronounced uptrend.
Yet the stock is a great bargain, selling at just four times earnings and yielding 3.4%.
***Action to Take***
Buy POSCO (NYSE: PKX) at market. And place a sell stop at $42 for protection. Speculators may want to take a look at the February $55 calls (PKX-BK). But don’t pay more than $2.20.
If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or e-mail: viptrader@oxfordclub.com , or contact Pillar One Advisor Greg Galloway or Rick Pfiefer at 800.438.3040 or 407.667.4729.
Stock
Country
Current Price
Comments
POSCO (NYSE: PKX)
South Korea
New
Buy at market. Place a sell stop at $42.
BanColumbia (NYSE: CIB)
Columbia
$21.21
Buy. Sell stop is $20.
NICE Systems (Nasdaq: NICE)
Israel
Take profits!
Stock hit trailing stop.
Shanda Interactive (Nasdaq: SNDA)
China
$33.73
Hold. Sell stop is $31.
Marvell Tech. (Nasdaq: MRVL)
Bermuda
$46.02
Buy. Move sell stop up to $43.
Comp. Rio Doce (NYSE: RIO)
Brazil
$34.02
Hold. Sell stop is $32.
Statoil ASA (NYSE: STO)
Norway
$23.65
Buy. Sell stop is $22.
Bio: Alexander Green is the Investment Director of The Oxford Club. A Wall Street veteran, he has over 16 years experience as a research analyst, investment advisor, and professional portfolio manager. Mr. Green is also considered one of the most talented financial writers in the business. He’s been featured on “The O’Reilly Factor,” profiled by Forbes and Marketwatch.com, and has written for Louis Rukeyser and several other leading financial publications. He currently writes and directs The Oxford Club Communiqué, the Oxford Insight e-letter, and four elite trading services: one focused on momentum stocks, another focused on companies with significant insider buying, another dedicated to international growth stocks and another focused on short-selling fundamentally flawed companies. Mr. Green is also a top-rated speaker at financial conferences around the country.
Copyright – 2005 The Oxford Club, LLC. The Oxford Club does not act as an investment advisor or advocate the purchase or sale of any security or investment. The Oxford Club expressly forbids its writers from having a financial interest in any security recommended to its readers. All of our employees and agents must wait 24 hours after an Internet publication prior to following an initial recommendation. And for hard-copy-only publications, 72 hours after the publication is mailed. Investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. The Oxford Club provides its members with unique opportunities to build and protect wealth, globally, under all market conditions. The executive staff, research department and editors who contribute to The Club’s recommendations are proud of the reputation The Oxford Club has built since its inception in 1984. We believe the advice presented to its members in our published resources and at our meetings and seminars is the best and most useful available to global investors today. The recommendations and analysis presented to members is for the exclusive use of members. Copying or disseminating any information published by The Oxford Club, electronic or otherwise is strictly prohibited. Members should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. Recommendations are subject to change at any time.
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