Stocks Under $10 With David Peltier
A Pair of Updates
The broader market averages have rebounded sharply this morning, gaining between 1.5% and 2% so far on the day. While news flow often slows down during this holiday- shortened trading week, a lot of economic data reports are scheduled for release, so stocks can still be volatile, as volume is generally lower than average.
We'd like to update readers on some action in two model portfolio names in this Alert, but we are not making any trades.
First, Vivus (VVUS:Nasdaq) (and the other companies related to the obesity market) are in the news today after reports that an existing weight-loss drug from Abbott Labs (ABT:NYSE) has elicited a higher rate of cardiovascular events than has a placebo in an ongoing study.
This news appears to have had no direct impact on Vivus, and the stock is keeping pace with the market today, recently changing hands at around $8.54. Even so, this is an important reminder that the Food and Drug Administration (FDA) remains concerned about safety issues in the potential new round of obesity treatments.
Not only is it important that Vivus' trials show that its obesity drug, Qnexa, is effective for weight loss, but ultimately, its approval will also be dependent on secondary benefits such as its effectiveness in fighting the symptoms of diabetes. In the meantime, we continue to find the stock attractively valued at current levels.
Second, some rumors that Wendy's/Arby's (WEN:NYSE) is interested in buying Krispy Kreme Doughnuts (KKD:NYSE) have been floating around the industry. While such an action is not outside of the realm of possibility, we've seen nothing to suggest that a potential deal is imminent.
Besides, we believe that management still has plenty of work to do in resuscitating its two existing brands -- especially Arby's. We maintain that a turnaround is currently under way and that the stock can trade up toward the mid-single digits over the coming quarters. Wendy's/Arby's shares remain attractive to purchase, and were recently trading at $4.14.
Regards,
David Peltier & the TSC Research Team
David welcomes your questions on Stocks Under $10. Please
email David with your questions at
Recent Actions
Adding to our position and upgrading our rating as we believe the company will rebound in the current period.
11/20/09 - 10:58 AM ESTThis pharmaceutical name is trading lower on the session, but we will continue to monitor the price action before taking action.
11/19/09 - 11:59 AM ESTWeekly Roundups
We put some cash to work this week as the model portfolio's benchmark, the Russell 2000, fell for four straight days.
11/20/09 - 04:54 PM ESTWe took advantage of the relative weakness in the small-cap universe to add two new names to the model portfolio this week.
11/13/09 - 04:38 PM ESTThe model portfolio saw a number of earnings releases this week amid a highly volatile broad market.
10/30/09 - 04:44 PM EDTPlease note that any trading ideas suggested in the Product prior to June 9, 2009 were recommended by Mr. Frank Curzio.
TheStreet.com Stocks Under $10 contains the author's own opinions, and none of the information contained therein constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You further understand that Mr. Peltier will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the information contained in TheStreet.com Stocks Under $10 may be deemed to be investment advice; such information is impersonal and not tailored to the investment needs of any specific person.
Investing in the stocks chosen for TheStreet.com Stocks Under $10 model portfolio is risky and speculative. The companies may have limited operating histories and little available public information, and the stocks they issue may be volatile and illiquid. Trading in such securities can result in immediate and substantial losses of the capital invested. You should use only risk capital, and not capital required for other purposes, such as retirement savings, student loans, mortgages or education.
TheStreet.com Stocks Under $10 portfolio is a model portfolio of stocks chosen by the author in accordance with his stated investment strategy. Your actual results may differ from results reported for the model portfolio for many reasons, including, without limitation: (i) performance results for the model portfolio do not reflect actual trading commissions that you may incur; (ii) performance results for the model portfolio do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the stocks chosen for the model portfolio may be volatile, and although the "purchase" or "sale" of a security in the model portfolio will not be effected in the model portfolio until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks in the model portfolio at the point in time you begin subscribing to TheStreet.com Stocks Under $10 may be higher than such prices at the time such stocks were chosen for inclusion in the model portfolio. Past results are not necessarily indicative of future performance.span> Past results are not necessarily indicative of future performance.
TheStreet.com Stocks Under $10 portfolio is a model portfolio of stocks chosen by the authors in accordance with their stated investment strategy. Your actual results may differ from results reported for the model portfolio for many reasons, including, without limitation: (i) performance results for the model portfolio do not reflect actual trading commissions that you may incur; (ii) performance results for the model portfolio do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the stocks chosen for the model portfolio may be volatile, and although the "purchase" or "sale" of a security in the model portfolio will not be effected in the model portfolio until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks in the model portfolio at the point in time you begin subscribing to TheStreet.com Stocks Under $10 may be higher than such prices at the time such stocks were chosen for inclusion in the model portfolio.
Past results are not necessarily indicative of future performance.| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,464.40 | 1,110.63 | 2,176.05 | 32.79 |
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