home
***
CD-ROM
|
disk
|
FTP
|
other
***
search
/
Software Vault: The Gold Collection
/
Software Vault - The Gold Collection (American Databankers) (1993).ISO
/
cdr12
/
at25060.zip
/
AT2060.TXT
< prev
Wrap
Text File
|
1993-04-03
|
6KB
|
110 lines
Ken Deen's THE AGGRESSIVE TRADER(tm)
"Seeking double-digit profits in one to four months"
Vol. 2, No. 60 April 2, 1993 9:50am New York Time
**********
Market Stance: Cautiously Bullish
**********
ALERT ITEMS:
Market Commentary: See below
Marginable Account (editor's personal account): No Trades
IRA Account (editor's personal account): No Trades
DESI(tm) Account (a computer-simulated hypothetical account): No trades
DESI(tm) Buy/Sell Signals (computer-generated): None
Other Strong Recommendations: (These stocks will be tracked and followed up
with sell [or cover] alerts.):
* President Riverboat Casinos (NASDAQ: PREZ, $60.13)
EPS:81, RS:97, GR:27->6, PE:51, Leisure&Recreation-Gaming
**********
TRADING IDEA ITEMS:
(These are NOT buy recommendations. They are merely suggestions for your
further research.)
Breakouts (The following stock(s) have excellent sales and earnings growth,
and have just broken out from a six-week or longer base.):
* Copley Pharmaceutical (NASDAQ: CPLY, $45.25)
EPS:99, RS:91, GR:52->52, PE:43, Medical-Generic Drugs (Vol.2 #53)
**********
President Riverboat Casinos
This is one of the most powerful stocks in the entire stock market. It
is a new issue, having come public last December. It traded as low as
21 3/4 on Dec. 16. The stock has nearly tripled, then, in less than four
months. However, I see plenty of additional upside potential on the basis
of the company's recent spectacular sales and earnings.
The stock is somewhat overbought, and I have decided to pass it up today
with my own money for that reason. There may, possibly, be an even better
buying opportunity over the next few weeks. However, this stock is so strong
and yesterday's earnings news so powerful that we may not get much of a dip.
The stock scores highly on my earnings surprise scale. The P/E, at 51,
is lofty to be sure, but down sharply from what it was (over 80!) before
yesterday's earnings news. Also, the P/E should fall sharply again next
quarter, because the loss in the May '92 quarter will likely be replaced
by a substantial profit in the May '93 quarter, sending the "E" (trailing
12-month earnings) further skyward.
Here are the last four quarters of sales and earnings; yesterday's news
is the last line. As you can see, the company's sales and earnings are
exploding:
Quarter
Ended Sales($mil) Earnings-per-share
--------- ---------------- -------------------
May 31 92 12.6 vs 16.3 -23% -0.46 vs 0.08 -0.54
Aug 31 92 20.7 vs 16.3 +27% 0.10 vs 0.09 +0.01
Nov 30 92 37.6 vs 18.5 +103% 0.87 vs 0.19 +0.68
Feb 28 93 31.8 vs 10.2 +212% 0.51 vs 0.05 +0.46
This stock is a leader of the very hot "Leisure & Recreation - Gaming"
group, which has moved into 6th place recently (out of 199 groups) from 57th
place on Feb. 24. This, therefore, is a leading stock in a leading group.
The company reported in yesterday's press release that trailing 12-month
earnings were $1.17 per share. I have used this figure to compute the P/E,
although it does not quite agree with the sum of the four quarterly figures in
the table above. I have not called the company to explain the discrepancy,
but neither does it worry me. This $1.17 per share for fiscal 1993 (ended
Feb. 28) blows off the map the recent consensus estimate of 28 cents a share.
Yesterday, the stock was up 3 1/8 on slightly higher-than-average volume
in response to the earnings news.
Located in Davenport, Iowa (319-328-8000), President Riverboat Casinos
develops, owns and operates riverboat and dockside casinos offering low-stake
gaming, dining, and entertainment.
All rankings in today's Alert are from Investor's Business Daily.
<Stock chart appears here in printed/fax version.>
**********
Previous Alert: Vol.2 #57 (April 1, 1993)
**********
*** To all who download this newsletter ***
On May 1, 1993, this newsletter will be available only for a subscription
fee. There will be no further uploads on or after that date.
From now through April 30, 1993, I am offering at-cost subscriptions (very
very inexpensive) by e-mail, fax, and postal mail. These are alternatives to
downloading. E-mail via Internet is free during this trial period.
Monthly Status Reports (available in printed form only) are an essential
adjunct to these timely bulletins. Among other things, they review the stock
holdings and historical performance of each newsletter account. To receive a
free sample Monthly Status Report plus an at-cost subscription form, just
send your paper mail address.
-Ken Deen
**********
The Aggressive Trader is edited and published at irregular intervals, but
at least monthly, by Deen Capital Management, Inc., P.O. Box 4791, Santa
Barbara, California 93140, (805) 565-2039.
CompuServe: 72020,2050 Internet: 72020.2050@compuserve.com
Deen Capital Management, Inc., its principals, employees, affiliates,
and/or clients may have positions in securities recommended herein and may
make additional purchases and/or sales in these securities.
Recommendations made in this publication involve a high degree of risk and
may result in losses. Readers should not assume that recommendations will be
profitable or will equal past performance. The information in this
publication is collected from sources believed to be reliable, but neither the
accuracy nor the completeness of this information is guaranteed.
The Aggressive Trader, Deen Earnings Surprise Index, DESI, and DESI-3 are
all trademarks of Deen Capital Management, Inc.
Copyright (c) 1993 Deen Capital Management, Inc.
-END-