Stock Picks Stock Market Investing Digest

"Unbiased Advice from America's Top Investing Newsletters"

Share this page with a friend
Home
Stock Blog
About Vital Stocks
Whitelist Us
Privacy Policy
Testimonials
Subscribe
Stock Newsletter Past Issues
Stock Market Articles
Stock Blog Hub
Search
Stock Links

 

 
 
 
 
 
 

 

 

  

 

 

Saturday, January 6, 2007
Volume 8, Issue 1

In This Issue:

1) Current Market Metrics - Mutual Fund Flows
2) Recent Blog Research Features
3) Feature Stock #1 - Travelzoo Inc. (TZOO)
4) Feature Stock #2 - Hemrich-Payne (HP)
5) Viewing the Market
    A)
Stealth Stocks Weekly Update
    B) The Importance of Screening and Backtesting
6) Additional Stocks - Worth a Further Look
    A)
Microsoft (MSFT)
    B)
First M&F Corporation (FMFC)
7) About VitalStocks.com
8) DISCLAIMER:  Use of this newsletter signifies your acceptance of this disclaimer.

 RSS Feed available: Fresh content each weekday http://feeds.feedburner.com/VitalstocksInvestingNewsletterDigest

This issue sponsored by...
==============================================

Complimentary Podcasts: Options Strategies for The Stock Investor

Learn options wherever you go or have time. Seven easy to follow Podcasts from The Options Industry Council. Download to your computer, iPOD®, MP3, PDA or smartphone. Watch or listen until you understand everything then move to the next Podcast.

http://findinvestinfo.com/vstocks/nl/208

=============================================

1) Current Market Metrics:

NEW YORK -(Dow Jones)- Stock mutual funds saw an inflow of $953 million during the week ended Wednesday, compared with inflow of $6.02 billion during the previous week, according to TrimTabs Investment Research estimates.

Source: http://www.nasdaq.com

Independent Data on Fund Flows
Data As Of:
3 Jan 2007

- Including ETF activity, Equity funds report net cash inflows totaling $2.682 billion in the week ended 1/3/07 with Domestic funds reporting net outflows of -$214 million and Non-domestic funds reporting net inflows of $2.896 billion;

-
Money Market funds report net cash inflows totaling $8.672 billion;

Source (Much more information available): http://www.amgdata.com/

==============================================

Visit our blog and share an article with a friend.

2) Recent Research Articles - Actionable investment research and commentary, unedited, straight from the pros.

2A)   (UTR) - Unitrin, Inc - posted a 127.5% positive earnings surprise for the third quarter:

http://vitalstocks.com/blog/2006/12/utr-unitrin-inc-posted-1275-positive.html

2B)   (OIIM) - O2Micro International Ltd - reported a record third-quarter posting an earnings surprise of 120%:

http://vitalstocks.com/blog/2007/01/oiim-o2micro-international-ltd.html

2C)   (TSYS) - TeleCommunication Systems, Inc - exceeded earnings estimates by over 100% in each of the past three quarters:

http://vitalstocks.com/blog/2006/12/tsys-telecommunication-systems-inc.html

2D)   (TNL) - Technitrol, Inc - topped analysts’ earnings expectations for the past five quarters by an average margin of 26.4%:

http://vitalstocks.com/blog/2006/12/tnl-technitrol-inc-topped-analysts.html

2E)  (MDRX) - Allscripts Healthcare Solutions, Inc - acceptance of technology to improve healthcare is increasing:

http://vitalstocks.com/blog/2007/01/mdrx-allscripts-healthcare-solutions.html

==============================================

3) Feature Stock #1:  Travelzoo Inc. (TZOO)

The company has exceeded earnings estimates in three consecutive quarters, with two of them posting year-over-year earnings growth in excess of 100%. Two of the three analysts covering the stock have raised their forecasts for this year. Over the past 60 days, this year's estimates have increased 6.3% to $1.01 per share.

Full Analysis

Travelzoo Inc. (TZOO), an Internet media company, publishes travel offers from various travel companies. The company’s publications include the Travelzoo Web sites, the Travelzoo Top 20 email newsletter, and the Newsflash email product.

It also operates SuperSearch, a pay-per-click travel search engine. Travelzoo’ products provide advertising opportunities for airlines, hotels, cruise lines, vacation packagers, and other travel companies. Its products also provide Internet users with a source of information on current sales and specials from various travel companies.

TZOO's third-quarter profits almost doubled over last year due to a robust online advertising market. Net income grew to $4.6 million, or 28 cents per share, from $2.3 million, or 13 cents per share, in the prior-year period. The results topped Wall Street's expectations of 25 cents per share, according to analysts.

Travelzoo reported quarterly revenue growth at both its North American and European units. Also aiding the bottom line, Travelzoo said its effective income tax rate for the quarter was 46%, down from 48% in the year-ago period.

"Q3 2006 marks our 33rd consecutive quarter of growth in online advertising sales," said Ralph Bartel, chairman and chief executive officer, Travelzoo. "We are very excited about the growth of our business in Europe. We will continue to aggressively pursue our strategy of replicating the Travelzoo® business model in international markets. We believe this represents an attractive opportunity for value creation."

The company has exceeded earnings estimates in three consecutive quarters, with two of them posting year-over-year earnings growth in excess of 100%. Two of the three analysts covering the stock have raised their forecasts for this year. Over the past 60 days, this year's estimates have increased 6.3% to $1.01 per share.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

VitalStocks.com Research Summary:
Data as of: 21 Dec

Price / Cash Flow Ratio is 68.2% of the Industry Average.

Forward Price to Earnings Growth (PEG): 0.24

Debt / Equity Ratio is 0.0% of the Industry Average.

Net Profit Margin is 93.4% of the Industry Average.

Return on Equity is 192.1% of the Industry Average.

Current P/E Ratio is 68.1% of the Industry Average.

5-Year Avg. Pre-Tax Profit Margin: 111.6%  of the Industry Average

Price/Sales Ratio is 55.4% of the Industry Average.

Income Per Employee is 63.1% of the Industry Average.

MSN Money Price Target:  http://moneycentral.msn.com/investor/research/wizards/srwtarget.asp?Symbol=tzoo

==============================================

Complimentary Podcasts: Options Strategies for The Stock Investor

Learn options wherever you go or have time. Seven easy to follow Podcasts from The Options Industry Council. Download to your computer, iPOD®, MP3, PDA or smartphone. Watch or listen until you understand everything then move to the next Podcast.

http://findinvestinfo.com/vstocks/nl/208

==============================================

4) Feature Stock #2 Hemrich-Payne (HP)

See HP comments at article end

Richard Rhodes, editor of The Rhodes Report newsletter, explains that it is quite probable that the USD will trade upwards +10% to +15% from current levels. Read this featured expert’s commentary regarding the bottoming dollar. Then take a look at some of the stocks that currently reside in Rhodes’ Paid-to-Play Portfolio.

Commentary from December 12

Click here to find out more!
It is abundantly clear to Richard Rhodes and his team that the U.S. dollar sentiment had gotten just a bit too bearish when The Economist magazine featured the demise of the USD on its cover two weeks prior; the previous time they did so back in early- 2005 just as the USD was bottoming then. This, plus Friday’s key technical bullish reversal higher via an “outside reversal day”; and an even more bullish “outside reversal week” higher – suggest the ducks are lining up for further USD strength.

Rhodes and his team can further add to their bullish USD thesis this weekend’s comments by former Chairman Greenspan, who noted that the USD should trade “lower for the next few years” as the propensity of OPEC countries and other trading partners is to diversify their currency reserves in both Euros and Yen was quite high and quite prudent. Indeed they are prudent; for it is simple portfolio diversification. But comment such as these come at the end of moves…not in the middle.

On a side note, the USD has traded below its 200-week moving average since June -2002; which combined with the fact Rhodes’ longer-term indicators have the potential to form a “positive divergence” – argue for an increasing probability that the USD will trade upwards +10% to +15% from current levels. If the markets are ill prepared for anything; it is a higher USD.

Holdings in the Paid-to-Play “Long Only” Portfolio include:

General Dynamics Corp.'s (GD) primary businesses focus is on shipbuilding and marine systems, business aviation, information systems, and land and amphibious combat systems. Each of these businesses involves design, manufacturing and program management expertise, advanced technology, and integration of complex systems. The primary customers for the company's businesses are the United States military, the armed forces of allied nations, other government organizations and a diverse base of corporate and industrial buyers.

Bowater (BOW) is engaged in the manufacture, sale and distribution of newsprint, uncoated groundwood specialties, coated groundwood paper, market pulp, lumber and timber. The company has pulp and paper mills in the United States, Canada and South Korea and North American sawmills that produce softwood and hardwood lumber. Bowater also operates facilities that convert a groundwood base sheet to coated products.

Hemrich-Payne (HP) is primarily engaged in the exploration, production, and sale of crude oil and natural gas and in contract drilling of oil and gas wells for others. These activities account for the major portion of its operating revenues. The company is also engaged in the ownership, development, and operation of commercial real estate.

This article highlights the commentary of Richard Rhodes for the Zacks.com audience. Richard Rhodes provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Rhodes Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Rhodes Report" and 30-Day Free Trial. And get immediate access to current issues and special reports.
Click here now.

Here’s How You Can Profit from the Pros
Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out.

VitalStocks.com Research Summary:
Data as of: 21 Dec

Price / Cash Flow Ratio is 37.6% of the Industry Average.

Forward Price to Earnings Growth (PEG): 0.19

Debt / Equity Ratio is 36.6% of the Industry Average.

Net Profit Margin is 177.0% of the Industry Average.

Return on Equity is 89.8% of the Industry Average.

Current P/E Ratio is 69.5% of the Industry Average.

5-Year Avg. Pre-Tax Profit Margin: 127.4%  of the Industry Average

Price/Sales Ratio is 27.6% of the Industry Average.

Income Per Employee is 20.9% of the Industry Average.

MSN Money Price Target:  http://moneycentral.msn.com/investor/research/wizards/srwtarget.asp?Symbol=hp

==============================================

Complimentary Podcasts: Options Strategies for The Stock Investor

Learn options wherever you go or have time. Seven easy to follow Podcasts from The Options Industry Council. Download to your computer, iPOD®, MP3, PDA or smartphone. Watch or listen until you understand everything then move to the next Podcast.

http://findinvestinfo.com/vstocks/nl/208

==============================================

5) Viewing the Market:

5A) Stealth Stocks Weekly Update - January 3rd, 2007

Summary of Recommendations:  Remain focused on risk management and capital preservation at this time.

Market Commentary

Welcome to 2007. This is a good time to talk about strategy as we peer into the New Year and wonder what kind of opportunities will likely come our way that may be profitable.

As we begin the New Year, the truth is that market leadership is deteriorating. That in itself is a sell signal. The OTC indexes are lagging way behind the NYSE and S&P 500 indexes. The Nasdaq 100 closed below its 50-day moving average today and has developed a pattern of lower lows and lower highs.

On the first day of the New Year, the Philadelphia Semiconductor Index (SOX) broke below its 200-day moving average. That's not a sign of a healthy market. In fact, on this first day we have already taken out the December lows for the OTC indexes, quick evidence that momentum is rolling over.

The McClellan Volume Summation OTC indicator is in a downtrend. This has been a very good indicator at keeping us on the right side on the market. The lesson learned last year was that we need to pay far more attention to this indicator.

This indicator turned negative last April, bottomed in the July/August period and remained positive until mid-November. It is now on a sell signal and has been falling since mid-November. The OTC has struggled since that same time. As long as this indicator is declining, it means risk takers are backing away from the market - that has never been a good sign.

Furthermore, the advance/decline line for the OTC has developed a downward pattern since the mid-term elections. Perhaps, lower crude oil prices will help reverse this pattern. Crude oil fell $2.73 a barrel to close at $58.32, which helped the transportation index to do better but it failed to do much for the OTC indexes.

In economic news, the Federal Reserve's FOMC minutes were released today and the stock market choked on it. Essentially, the Fed is now acknowledging more downside economic risk developing over the housing collapse than they expected.

Though much of the December policy statement mirrored October's report, this month the Fed added the qualifier "substantial" to its assessment that the housing market is "cooling", suggesting that it sees greater downside risks in that sector.

The minutes made reference to recent "mixed" economic minutes. They downgraded their assessment of business investment, noting that it "appeared to have decelerated recently." It also noted that while employment had posted "solid gains" in recent quarters, job growth "would probably slow over the next quarter or so" in lagged response to softer activity.

There are three scenarios for the U.S. economy in 2007 and up to this point spotting which scenario is developing has been like driving in thick fog trying to see and decipher the signs.

Growth and inflation rebound. In this scenario, it is argued that the war debts have grown so large the Fed now has no choice but to monetize government debt by inflating. In this scenario, the Fed will be pumping money supply at a much faster pace for a much longer period of time. Unfortunately, it will cause core inflation to creep higher and lend justification to push interest rates higher.

Soft Landing. The GDP avoids a recession but stays below its growth potential rate of 3% in the first half of 2007. Inflation slowly works lower and interest rates hold steady.

Hard Landing with a Recession. The GDP drops to below zero for two consecutive quarters, with a sharp drop in demand, labor markets and a sharp fall in commodities followed by sharply lower inflation and interest rate cuts to follow.

I think the first quarter of 2007 is going to confirm which scenario is developing and January could well reveal what we need to know.

Up to this point, the GDP has fallen for the last two, perhaps three, quarters. It sounds to me from the Fed minutes that the Fed is preparing the markets for sub par growth of zero to 1.5% by acknowledging risk is growing for the economy.

What concerns me is that we have seen a housing boom in 2000-2005 that has now shifted to a housing bust. Many have thought that the market is following the 1995 soft landing scenario, but in 1994-1995 we did not have a boom/bust in housing as we have had this year.

This has been a rather dramatic drop in housing and what's more, existing home prices are still falling and new building permits still dropping. This makes scenario three a very real possibility, especially now that the Fed is alerting the markets that economic risk is growing over a worst than expected housing bust.

Since 1951 there have been nine housing boom periods and what followed have been nine housing busts and each produced a recession. Assuming this time is different, ahead of confirmation that it is different, isn't the way you should plan out your strategy for 2007. Remember you hope for the best---but you plan for the worst.

That means having a strategy for the worst if certain conditions are tripped. Deteriorating market leadership is a warning signal, which is warning us that investors are becoming more defensive.

A breach below the 50-day moving average in the S&P 500 at 1,398 would be another warning signal to reduce exposure. A break below the weekly middle Bollinger Band lines tells us that the correction is getting far more serious and that a test of the primary trend line is likely.

Shorting strategies and fully hedged positions should be considered if the indexes break below their 200-day moving averages. This should be followed aggressively if the indexes break below their monthly middle Bollinger Band lines.

I think January is going to provide confirmation of which scenario is going to play out. Until that becomes clear, remain cautious.

Courtesy: www.zacks.com

==============================================

Actionable, Professional Research updated daily

Our daily professional research content blog is up and running.  We post new research daily.  See it here:  http://www.vitalstocks.com/blog/index.html
==============================================

5B) The Importance of Screening and Backtesting

By Kevin Matras, Jan 02, 2007

Every week, I either outline a unique way to screen for stocks or go over a proven, profitable trading strategy.

But in this week’s article, I’m starting at square one and going over why screening is so crucial. Even more importantly, I’ll go over why backtesting is the most important step of all.

Why Should I Use a Stock Screener?

The short answer is:

“Because there are over 10,000 stocks out there and you need a way to find the good ones”.

The longer answer is:

Other than buying the stocks that are talked about on TV or written about in the paper (not to mention ‘tips’ from friends), how else are you going to find stocks that meet certain fundamental characteristics?

Even if you don’t use a screener now, most people still do their own ‘screening’ one way or another. For example, they may hear that a stock has a certain Growth Rate, or a certain P/E Ratio or Sales Surprise. They then find themselves listening for or reading about stocks that meet these criteria.

Well, if you want to find stocks that meet certain criteria, you can find them quickly and easily with a stock screener.

However, just because you narrow down 10,000 stocks to only a handful, that doesn’t necessarily mean that you’ve picked the best stocks on the planet.

You might have picked the worst ones.

But how will you know?

Backtesting!

Once you’ve created a screen, you can then backtest it to see how good (or bad) your screening strategy has performed.

In other words, does your screen generally find stocks that go up once they’ve been identified? Or does your screen generally find stocks that get buried once they’ve been identified?

This is good stuff to know.

With backtesting, you can see how successful your stock-picking strategy has performed in the past, so you’ll have a better idea as to what your probability of success will be now and in the future.

Of course, past performance is no guarantee of future results, but what else do you have to go by?

Think about it; if you saw that a stock-picking strategy did nothing but lose money year after year, period after period, stock after stock, over and over again; then there’s NO WAY you’d want to trade that strategy or use that screen to pick stocks.

Why?

Because it’s ‘proven’ that it picks bad stocks.

Sure, it may turn around and start picking winners, but it may also continue to pick losing stocks the way it always has.

On the other hand, what if you saw a strategy that did great year after year, period after period, etc.? You’d of course want to trade that strategy.

Why?

Because it’s proven to be a profitable trading strategy.

And while it may start picking losers all of a sudden, it may also continue picking winning stocks, just like it had been doing over and over before.

Keep in mind, a screening and backtesting program isn’t a ‘box of magic’.

But it’s a great way to see what works and what doesn’t BEFORE you put your money at risk!

I’ll end this with a conversation that I had with someone a while back that was ‘stuck’ in a losing stock:

I asked him why he was still in it if it kept on losing money.

He said that he didn’t think it would go much lower from here.

I asked him if he thought it would go this low when he bought it.

Of course, he said no.

I then asked him if he thought it’d go up from here.

His answer was ‘probably not right away’ and then added that it could still fall a bit further.

I told him there are plenty of stocks going straight up; “Why don’t you get out of that one that’s losing you money and get into a better one?”

His answer was; he didn’t know of any better stocks to get into.

I then asked him; “What if you did know of a better stock to get into, would you do it”?

His answer of course was: YEAH! But he quickly added that he didn’t know how to find ‘better’ stocks.

That last comment said it all.

He was in losing stocks because he didn’t know how to pick better ones.

But if he had a proven, profitable, stock-picking strategy, he could.

Don’t get me wrong; just because you have a great strategy for picking winning stocks, it isn’t going to preclude you from ever having another loser. On the contrary, even some of the best strategies ‘only’ have win ratios of 70% or 80%. (NOT 100%.)

But if your strategy picks winners far more often than losers, you can feel confident that your next pick will have a high probability of success.

And don’t be the guy who ‘accidentally’ gets into one or two good stocks and thinks he’s the next Warren Buffet. If your stock account is important to you, test your stock-picking strategies to see if your method for finding winners is a repeatable one.

And that’s why someone should use a Screener and a Backtester.

As usual, I’ll close with a few new picks from some of my favorite backtested screening strategies for the week of 1/2/07:

AEOS American Eagle Outfitters, Inc.
(from the EPS Growth Past and Present screen)

AMSF Amerisafe, Inc.
(from the ROE2 screen)

BITI Bio-Imaging Technologies, Inc.
(from the Breakouts screen)

Courtesy: Zacks.com

==============================================

What do we pick?

VitalStocks newsletter presents the two best ideas from the commentary of the week.  Here is the secret:  We take all those ideas and compare each stock to various industry averages.

Professionals pay thousands of dollars per year for access to this information.  Our publishers feel some investors need to take a test drive before purchasing the investing newsletters of their choice.

Submit all comments or ideas: webmaster@vitalstocks.com

==============================================

6) Additional Stocks - Worth a Further Look

6A) Microsoft (MSFT)

See MSFT comments at article end

Dr. Melvin Pasternak, editor of the StreetAuthority Swing Trader newsletter, offers his technical analysis of the S&P 500. Read this featured expert’s commentary and learn about the different economic indicators referenced by Dr. Pasternak. Afterward, take a look at some of the doctor’s stock profiles.

The Primary Trend from December 18

Yet another stair has been added to the "stair step" advance of the S&P 500.

On December 7th, the S&P hit a high of 1418.27 and then quickly backed off round-number resistance just shy of 1420. Over the next four trading days, the index retreated each time it tested that level.

Last Thursday, however, corporate-friendly news gave the index the momentum needed to overcome the 1420 barrier. On Friday, the S&P ratcheted up to the next 10-point stair, hitting an intraday high of 1431.63 before retreating.

Blowout earnings this past week from investment bankers Goldman Sachs (GS), Bear Stearns (BSC) and Lehman Brothers (LEH) helped set a bullish tone, which was reinforced by another batch of positive economic data.

At its Tuesday meeting, the Fed reaffirmed that "readings on core inflation have been elevated" and warned that high levels of resource utilization have "the potential to sustain inflation pressures." On Friday, however, the latest inflation numbers proved benign, as the closely-watched Consumer Price Index (CPI) came in flat for November.

At the same time, industrial production staged a modest recovery, ticking up 0.2% for the month. Those figures, coupled with a better than expected read on retail sales, suggested that the Fed's goal of steering the economy into a "soft landing" remains on track.

For the week, the S&P gained a bit more than 15 points, closing just 4 points off its highs. While the rally was modest, it was enough to keep the index above the key Intermediate trendline drawn from the July low. That trendline currently intersects the chart at approximately 1398.

The S&P continues to trade above all key moving averages. Most of these are sloping moderately higher, but the 10-week at 1389 is slanting sharply upward, reflecting the powerful Intermediate-term advance that is now close to six months old.

Current resistance is at 1441, the level of the upper Bollinger band. This band has provided resistance throughout the uptrend, with the S&P escaping its confines only in September and October -- and even then briefly. The band is rising in conjunction with the 20-week moving average around which it is calculated. Over time, that means resistance will climb progressively higher.

The Major bull market trendline drawn from the July 2004 low now crosses the chart near 1266, so a near-term test is almost inconceivable. The weekly indicators have been overbought since August, but the S&P has still advanced more than 120 points since that time.

ADX and MACD remain on strong buy signals. RSI, after giving a weak sell signal, has climbed back above the key 70 level to finish the week at 74. After hugging the key 100 level the past several weeks, CCI has now bounced higher, closing at +122.

Stochastics has been highly overbought for nearly five months and remains so now, with %K at 93 and %D also at 93. Both components of this indicator would have to slip below 80 to generate a sell signal. That is certainly improbable before the beginning of 2007.

Short-term Trading Ideas include…
Long Candidates:

Microsoft (MSFT): Dr. Pasternak highlighted Microsoft in the November 13th newsletter at $29.24. On Thursday, the shares finally traded through the $30 level for the first time since 2002! MSFT has also created a base of $6, which projects a target in the low $30's

Oracle (ORCL): After gapping nearly $2 higher when the company reported quarterly earnings, ORCL has since consolidated between the low-$17 and high-$19 range.

Time Warner (TWX): Dr. Pasternak flagged TWX in the November 20th newsletter at $20.43. The stock has recently begun to trend higher after a prolonged trading range, and has bulled its way through $20 for the first time since 2004. Thus far, the shares have held that support.

Courtesy: www.zacks.com


==============================================

6B) First M&F Corporation (FMFC)

First M&F Corporation (FMFC), a Zacks #1 Rank stock, beat the third-quarter consensus earnings estimate by 8.1% when it posted profits of 40 cents per share. The company recently opened its first Florida branch, providing FMFC with opportunities for growth in that market. The Board of Directors declared a quarterly cash dividend of 13 cents per share on Nov 9. The company has a price-to-book ratio of 1.4, compared to 4.9 for the market.

Full Analysis

First M&F Corporation operates as the holding company for Merchants and Farmers Bank of Kosciusko. The company has 46 banking locations throughout Central and North Mississippi, in Shelby County, Alabama, in Southwest Tennessee, including the Memphis metro area and now in Okaloosa County, Florida.

On Oct 19, FMFC reported third-quarter profits of $3.7 million, or 40 cents per share. With analysts calling for profits of 37 cents per share, the company surprised to the upside by a solid 8.1%. FMFC posted earnings of 37 cents in the prior-year period. Net interest income increased 20.7% to $13.4 million from $11.1 million in the third quarter of 2005.

For the first nine months of the year, profits came in at $10.2 million, compared to $9.5 million for the same period last year. Net interest income jumped 19.9% to $39.2 million from $32.7 million for the first nine months of 2005.

Chairman and CEO Hugh S. Potts, Jr. stated, “With the help of our two recent bank acquisitions, we have grown our assets by 21% and deposits by almost 24% since the beginning of the year, creating a growing base from which to offer M&F banking to a broadening footprint in three states. We also look forward to opening our first Florida branch in the fourth quarter of 2006 and the opportunities for growth in that market.” FMFC announced the opening of a branch in Crestview, Okaloosa County, Florida on Nov 20.

Consensus estimates for this quarter and next jumped 5.3% and 7.9%, respectively, over the past 60 days. Profit forecasts for this year and next have risen 3.4% and 7.6%, respectively, over the same period of time.

The Board of Directors declared a quarterly cash dividend of 13 cents per share of stock on Nov 9. The dividend is payable on Dec 29 to stockholders of record as of Dec 18. FMFC has a current dividend yield of 2.8% and a five-year average dividend yield of 2.9%.

FMFC is currently trading at a valuation of 12.5x trailing 12-month earnings and at 12.2x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.7x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.4, compared to 4.9 for the market.

Content Courtesy: Zacks Investment Research

#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Courtesy: www.zacks.com

==============================================

Complimentary Podcasts: Options Strategies for The Stock Investor

Learn options wherever you go or have time. Seven easy to follow Podcasts from The Options Industry Council. Download to your computer, iPOD®, MP3, PDA or smartphone. Watch or listen until you understand everything then move to the next Podcast.

http://findinvestinfo.com/vstocks/nl/208

==============================================

7) About VitalStocks.com:

I believe America has incredible opportunities for people to succeed by making money in the stock market. After making and losing lots of money myself, I realized that there were no sources were investors could get unbiased valuable information.

That is what made me begin this project.  I continue to work with the top professional investing newsletters to bring “capsules” of their best stock picks to you.

Please help keep them participating in our newsletter, follow their links and see what services they provide.  Please consider sharing this with your friends. All will benefit.

Read More: http://www.vitalstocks.com/about_us.htm

 RSS Feed available: Fresh content each weekday http://feeds.feedburner.com/VitalstocksInvestingNewsletterDigest

==============================================

8) DISCLAIMER: "VitalStocks.com is an independent republisher of investment advice.  The companies, or newsletters, whose stocks we republish, compensate neither the company or its employees in any way, and we hold no positions in the securities aforementioned.  Sources of information are assumed to be reliable, but they are in no way warranted to be complete.  Recommendations, opinions or suggestions are given with the understanding that subscribers acting on information assume all risks.  Readers must keep in mind that, "Past performance doesn't predict future results." Investors should always research companies and securities before making any investments.  Nothing herein should be construed as an offer or solicitation to buy or sell any security."

VitalStocks.com
460 NW Heron Avenue
Mountain Home, ID 83647-2444


© VitalStocks 2001-8. All rights reserved