Veco's trailing P/E of 6.0 and the forward-looking P/E ratio of 13.2 are both undervalued relative to its peers, and a strong history of earnings beats long-term rallies from the stock make the recent breakout effort particularly compelling.
San Diego, CA (PRWEB) May 24, 2011
Veco Industries, Adolor Corp., and Entertainment Properties Trust have been added to the official Rhino Report portfolio, while M&T Bank Corp. and China Media Express have been removed. The buys and sells reposition the portfolio for what Chief Analyst James Brumley believes should be optimal performance for a looming slow and slightly bearish summer.
The subscription-based investment newsletter added Veco, a semiconductor manufacturer, to its list of positions early last week. The newsletter specifically notes the trailing P/E of 6.0 and the forward-looking P/E ratio of 13.2 are both undervalued relative to its peers. Moreover, Brumley notes a strong history of earnings beats and an even longer history of long-term rallies from the stock make the recent breakout effort particularly compelling.
Entertainment-oriented (retail, theatres) REIT Entertainment Properties Trust was picked on the 19th as a longer-term holding. The entry was based on a key technical signal called a cup-and-handle pattern, which has been completed/fulfilled within the last two weeks. With confirmed momentum backed up by a yield of 5.9% (and a dividend that has been growing nicely over the last year or so), slow and steady progress and income should make this name a brought spot during what may be a lethargic period for stocks.
Adolor Corp. is being viewed only as a short-term trade at this time, and was also added on the 19th. Though there are no trailing or projected net earnings, the chart itself has hinted that at least a decent number of potential buyers are testing the waters. A move above $1.55 for the stock may be the catalyst for such a quick rally.
The recent exit on China Media Express was also a long-awaited one, as the stock had stopped trading after it was delisted by the NASDAQ back two months ago, and only started trading again - as a pink sheet equity - last week. All things considered, Brumley was pleased with the exit in the $4 range; it could have been much worse.
M&T Bank Corp. was also sold last week. Though this was actually one of the Rhino Report's newest trades (bought on May 3rd), the stock has not made adequate progress since its entry. Rather than hold dead trades and continue the risk of a trade slipping into the red after nearly three weeks, the plug was pulled and a small profit was reaped in a defensive measure.
To learn more about these outlooks and other stock in the current portfolio, go to the Rhino Report web site located at: http://www.rhinoreport.com for more information.
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