Strong Fundamentals: Ready To Be Loved?

This month features the top percentile of all stocks covered at MANIFEST on the basis of a combination of strong fundamentals (return forecast and quality) and some key technical factors (relative strength index, sentiment and momentum).

Overall Market Expectations

The median projected annual return (MIPAR) for all 2400+ stocks followed by MANIFEST (Solomon database) is 7.2% (1/31/2013). The multi-decade range for this indicator is 0-20% and an average reading since 1999 is 8.5%.

O Cupid, Doth Thy Arrow Sting?

Only when it misses.

With Valentine’s Day around the corner, Body Central (BODY) a specialty retailer for ladies from 18-35 might be worth a closer look. Be diligent. This one is down to $8 from $30 and has recently changed management while harvesting a weak quarter or two. It could be a value trap … or an oversold opportunity. From our vantage, we’re hoping it’s Chicos II.

Qualcomm (QCOM) is always a worthy study and a well-diversified supplier to a number of the combatants in the smart phone and tablet wars. I still remember Christmas break 1999 when our largest holding at the time, QCOM, soared at an incredible rate.

The January Round Table audience selected AeroVironment (AVAV) following a brief summary and nomination by Ken Kavula — one of our leading knights on a relative return basis since inception.

Super Bowl weekend. Do you know where the remote is? Study Universal Electronics (UEIC). You can order a new one if needed.

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