Sunday, June 18, 2006

Notablecalls – Paperstand – Barron’s

Capital One (COF) highlighted, with Barron’s saying that based on its track record and 1Q results, the co could well succeed as a bank. If so, the shares could rise more than 50% over 5 years.

Notablecalls: COF chart looks good. In case the stock will not gap up more than 20c I see some additional gains over the day.

According to the Barron’s CVRD (RIO) and Rio Tinto (RTP), both of which are nicely diversified, look like good bets. Bulls think the ADRs of each co could rise by about 40% over the next 12 months.

Barron’s highlights small cap stocks that are trading at ridiculous P/E multiples. At the top of the list is DiamondCluster (DTPI) with P/E of 909. Others on that list include ALKS, LFB, AAI, SPRT, TASR, FALC, POZN, BYI, LTRE, TRC, AMKR, PMACA, WPP, CNXT, TUNE, CYCL, UTEK, IFOX and NP. According to the article, all the academic work shows that high P/E valuations, over time, do poorly.

Notablecalls: Barron’s moves small cal stocks. DTPI likely to get hit.


Barron’ “The Trader” column suggests that NetRatings (NTRT) majority owner may buy rest of the co. NetRatings is 62%-owned by VNU of The Netherlands, which itself was recently acquired by private-equity firms. According to the article, NetRatings' shareholder list is heavy with smart-money hedge funds with concentrated positions. They aren't likely to allow the co to be taken out on the cheap.

Notablecalls: NTRT will likely gap up on the news but one must remember the takeover chatter surrounding the name has been there for several years already. See it as a shorting oppy if the gap is closer to 10%.

Barron’s suggests that some China stocks may bounce back in the near term. Those include Ctrip.com (CTRP) and TOM Online (TOMO).

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