Chart of the Day – Publishers
It’s still hit and miss within the industry, but there are a few nice finds in there. most everything is overbought. I did find the chart of the S&P 1500 Publishing Index to be interesting though. One of the core ideas of my stock-selection strategy is to find groups (sectors and industries) that have not yet taken flight, and are not ripe for a big dose of profit-taking. I’ve got a feeling this group’s best days are ahead of it rather than behind it. Take a look at the chart, but keep reading. FreeTradePicks.com | Login | Get all our email updates here! Connect on Facebook | Follow on Twitter If we find a stock we really like that also gives us the riugth technical siganl from our system, we’ll add it to the portfolio. As a matter of routine, independent analysis, I scan through all industry charts – several dozen of them - every week in search of stocks that are just now starting to perk up or move higher. As you might imagine, there aren’t many of those right now…. S&P 1500 Publishing Index - 10/22/09
Obscure? I don’t deny it, though let me add I’ve made the bulk of my money with the obscure stuff. And yes, this is likely to be one of our biases going forward. It’s moving higher now after lagging the rest of the market over the last few months. As for which stocks actually qualify as a publisher though, think along the lines of John Wiley (JW-A), Gannet (GCI) [though I remain thoroughly unimpressed by newspapers], and Meredith (MDP). The media doesn’t make that easy to do, since they tend to fixate an “what’s hot” right about the time it’s ready to cool off. Get further analysis on JW-A, CGI, or MDP.