Tuesday, March 28, 2006

To the Moon Alice, to the Moon ...

We recently profiled a potential portfolio over here, that analysts state is slated to underperform. On the basis of aggregate analyst opinion being a contra-indicator of actual performance, it was suggested that portfolio may well be slated for above-average performance.

At the opposite end of the scale, we have a potential portfolio that analysts just love - in fact, they love them so much, some way had to be found to limit the size of the lists (unlike the underperform portfolio). The base selection criteria were similar in that they had to have an aggregate "strong buy" from the analysts, with the additional proviso that if it was a NASDAQ-listed stock, it had to be covered by at least seven analysts (because there were so many "strong buys" among that wildly enthusiastic crowd).

So, just like in "The Honeymooners" where Ralph was always threatening to send Alice "to the moon", the analysts claim that these stocks are going "to the moon". Their name, trading symbol and March 16th 06 closing price are as follows:
  1. AC Moore Arts - ACMR - $16.44
  2. BE Aerospace - BEAV - $24.57
  3. Cognex - CGNX - $28.30
  4. Comcast - CMCSA - $27.17
  5. DepMed - DEPO - $5.80
  6. DOV Pharmacuetical - DOVP - $17.05
  7. Petrohawk Energy - HAWK - $13.10
  8. Jupitermedia - JUPM - $16.99
  9. Ness Technologies - NSTC - $11.31
  10. Open Solutions - $26.46
  11. Pinnacle Financial Partners - PNFP - $27.90
  12. RC2 - RCRC - $38.71
  13. Signature Bank - SBNY - $33.50
  14. Select Comfort - SCSS - $36.50
  15. Stage Stores - SSI - $28.77
  16. Banc Corp. - TBNC - $11.79
  17. UTI Worldwide - UTIW - $101.19
  18. Xyratex - XRTX - $25.84

With the exception of Stage Stores (#15 on the hit parade), they ALL trade on the NASDAQ. (Perhaps the analysts there are subject to wild boosterism, I guess we'll find out).

Anyway, they say that these stocks are all slated to outperform - we'll check in later and find out if analysts are as useful as their employers think they are....


The Confused Capitalist

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Andy Kern said...

Check out page 42 of the new issue of FORTUNE. I think they stole your pseudonym.

Jay Walker said...

Readers, please note that I had to correct the price of two stocks, due to typo's - DepoMed was put in at $.580, instead of the correct $5.80, and Pinnacle Financial was put in at $29.90, instead of the correct $27.90.

Both of these errors have now been corrected.