This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dykstra: Discipline Key in Facing Life's Curveballs

At this point, I believe all the bad news is priced into the stock. Yes, Symantec lowered its 2006 revenue forecast but is still projecting $5 billion of sales in the coming year, has minimal debt, more than $4 in cash per share on the books, and cash flow above $840 million in the past 12 months.

I would be a buyer right here in the $19.50 range. If you are a trader and like to book short-term profits, I would sell at the 21-day moving average of $21.69.

Because this company is so undervalued, I would set a stop-loss just above the 52-week low of $18.01. If it goes back to that area, I would buy more.

My other pick this week is Macrovision (MVSN), which develops digital rights management technologies. The company's software combats widespread, casual digital piracy while offering solutions that enable customers to electronically control the use of digital content and software, and to build significant new revenue models.

Macrovision has built, and continues to add to, a large patent portfolio that helps differentiate its products and is important to its license-driven and solution-based business model. The company generates recurring revenue from a variety of sources by licensing the use of its patented technologies and software solutions.

The selloff in this stock is way overdone. Not only was it knocked down, it looks like the punch came from Mike Tyson (during his prime). Macrovision has disappointed shareholders, for sure, but the company has $225 million in cash, no debt and $50 million in free cash flow. At 16 times next year's earnings, the stock presents a low-risk opportunity for a trade.

From a technical perspective, Macrovision looks good for a couple points. I have a buy order in at $15.05, and would recommend selling at the first technical hurdle it will have to cross, which will be the 21-day moving average at $17.98. Or, if you want a little more holiday money, wait until the 50-day moving average at $18.56.

Again, this stock is undervalued, so set your stop just above the 52-week low of $15.03.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs