Keeping an Eye on ISRG and some other plays

I don't have time for a long post right now but I do want to share a few notes...

ISRG is one of the best companies out there. It is on the my "top ten companies for the long haul" list. The beauty of ISRG is that it brings in revenue to hospitals and yet does not need new facility development. The upside for hospitals is quite nice compared to the cost. This is opposed to ARAY, which has some very exciting technology but requires substantial capital expenditure including development of new facilities. ARAY stock was crushed earlier in the year when the company announced that they were not going to be able to sell as many units as originally planned because the credit crunch was preventing some private doctor groups (not hospitals) from getting the finance they needed to buy the units (and do the necessary building to accommodate the units).

ISRG has repeatedly mentioned on conference calls that they have not seen this problem with their units. However, numerous times now some analyst has come in and downgraded the stock or mentioned this as a concern and caused the stock to sell off not long before earnings. In each case the stock recovered and more going into earnings... in fact a look at this chart shows the pattern... The company reports on the 22nd I believe.
Chart is here.

An analyst again downgraded the stock recently on the same concerns and ISRG is once again retesting its recent lows in the 250 region. I think this stocks really warrants a looks as a play into earnings but a sell just before or slightly after. That is... unless the overall market just gets crushed. This needs some serious discussion...

This is a very fearful market but not so fearful that total capitulation has occurred. That is a dangerous place to be. In any market, and especially this kind, I ALWAYS recommend that you look at the SPX, COMPQ, $INDU, and/or Dow 30 charts first before taking any new positions. (These symbols provide the SP, Naz, DJ industrials when put into stockcharts.com).

Today we had a clear oversold market rally that fell flat when we failed resistance at 1275... (which as Trader Mark pointed out in his blog at right) was key support turned resistance... as a result almost everything fell back.
Here is the SPX chart.


Some of the other plays that I am looking at if the market bounces in earnest:
OI is a very interesting play. They have been crushed but the company is a very good one that makes glass containers for the world. There is some concern that the fuel costs are going to eat away at profits but I am looking very much at this company because I think the selling has been overdone

SDTH... this company would be at 10-12 in a different market. It is very volatile so on a bounce it may shoot up but stops are critical as it can also shoot down. I have discussed this company a lot on this blog.

CMED...
I have done well on this great company as longer term readers may know. I sold it awhile ago because of this market and bought back when it hit its 200 SMA around 43. I put a stop out below 43 and it was taken out today, before bouncing back. I always want to quantify risk. The disadvantage is that sometimes market makers will take out stops... I placed it below the 200 and just below the middle bollinger band but it was still taken out... it was a small position and it apparently did bounce to almost 45 but I was not available to sell and so it went back down. It is now again at 43 so for those able to watch the daily action I think on a legit rally you can get some percentage points here. This stock is well over 50 in a better market as they blew away earnings last Q and have nothing to do with the economy...

FEED...
This company is just way too oversold... too good of a company... I know I am mostly talking about Chinese companies here but this is where a lot of growth will be...

On the short side...
I've been waiting for that market rally that never comes to initiate some short positions. I've held cash and been very conservative and been short at times all year, knowing that the bear market rally was just a secondary correction and would come to an end. Yet I have not jumped in to recently as I keep expecting a market rally...

Well... it is time to look to where the froth is...
DUG
SMN
other top performers that still hold a lot of profit. If things get bad enough expect AAPL to hit the chopping block. It is a great company but... it is up partly because people may think the Iphone is taking business away from RIMM...

Oh by the way I initiated a very small position in UNG. This is a futures play on natty gas. It is likely that a post on this industry may be in the offing when I have had time to do the full research...

Also a coal post was made but I want to touch it up...
ANR and BUCY are the top names here...
Look for this post as it will go out at some point... coal may or may not have topped for now but in the longer term it is going nowhere but up...

BTW... as I've mentioned I post when I have time, not every night for sure unless I happen to have time... but keep the feed going on my yahoo or google if you think the 'Rose' is of any value to you... I may post whenever... the feed can be found at the very top of the page...

One last note: I did sell JASO on the bounce today. Solars were due for a correction. Jaso went up 5% on Fri. and continued up in the am... I said I woulduse my stops and it was sold off around 15.7.... This is a traders market on the long side right now.
"The Yellow Rose Street Beat" is for informational purposes only. It does not give investment advice.