Covering High return Balanced Investing Strategies To
Make Money In Up Or Down Markets
A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King, Charles Moskowitz
April 6, 2015,
Market Strategies Guide to Successful Trading
To subscribe to the Options Only Account Trades simply TEXT the word TRADES to the Number
and you will automatically be included.
Market Strategies $ 10,000 Options Account
We have three open long positions : 6 ARRY June 8 Calls ;6 GLD April 116 Calls;
And 15 PFE April 25 Calls
Loss last week $ 159; Year-to- date profit $ 5,202. 00 Funds in Use $ 1856
Week 13 was a small loss of $219 to bring YTD performance to $5,142. We have 4 open
positions with a total of $1,856 in use.
There will be no new trades listed in tonights’ letter. The issue is how we "catch up" to the
sell off after the labor numbers from Friday. For months (actually over a year) I have been
complaining that the earnings being reported are of such low quality that they should be
discounted. I have stated repeatedly that "you can -not cut payrolls to regain prosperity, and
that without REAL top line growth the value of financially engineered gains are at best
transitory.
While there are a multitude of excuses we will hear in the next couple of days about how the
weather was a problem and Easter came early, the bottom line is that regardless of how the
price of gas puts more money in the pockets of the working class, it's not getting spent...
Last year it was the warmer winter that depressed Q4 13 and Q1 14s spending on winter apparel,
and this year its the cold weather and snow that was the culprit. You can't have it both ways.
Also, as stated here just last week, geopolitical issues turn the psychology faster than any
companies reports....And after we absorbed the Saudi / Yemen news, we got it compounded by the
"framework" for the Iran nuclear agreement that no one in there right mind would think there is
progress. It just amazes me that anyone (as much as they want to) would trust the Iranians to come
clean and actually follow through on any promises made. "Once bitten, twice shy" seems to not be
in our government’s memory.
I don't belittle the effort, but really....trust the most aggressive local government who still (even this
week) confirms its commitment to the elimination of Israel ???
I cannot make new commitments to this market until I see how we react tomorrow. After that I will
utilize the texting service to issue new trades..................CAM
Princeton Research Market Strategies Newsletter
Page 1
New Trades: Options Account :
All trades were based on your participation in the texting service to receive updates. Previous closed out trades
not listed here may be seen in previous market letters.
DATE
04/02
Bought 6 FEYE April 39.50 Calls
PRICE
1.00
COST PROCEEDS
600
RESULTS
03/30
Sold 7 PFE April 35 Calls ( 100% Profit Rule )
0.42
294
147 Gain
03/30
Sold 6 GLD April 116 Calls
0.61
366
306 Loss
03/30
Bought 12 SYY April 38 Calls
0.49
588
03/27
Bought 6 GLD April 116 Calls
1.12
672
03/26
Bought 15 PFE April 25 Calls
0.21
315
03/25
Bought 6 ARRY June 8 Calls
0.90
540
New trades $ 10,000 account...In Texting we have a limited amount of words. In the interest of brevity:
OPTIONS ONLY: 1 January , 2 February. The Quantity and Strike Price for each trade is specific. Trading is
hypothetical. We may trade weekly options and they are noted: SPY 1/25 147 for SPY Jan 25th 147 Calls or
Puts.For any questions please call 702 650 3000. Closed out positions may be found in previous letters dating
back three years: March 30th; 23rd;16th; 9th;2nd; February 23rd;16th; 9th; 2nd; January 26th;19th;12th; 5th;
Princeton Research Market Strategies Newsletter
Page2
MARKET LABORATORY – WEEKLY CHANGES
Prices are copied from Barron's Weekly and Yahoo Finance and may be incorrect
Dow
17,763.24
+ 50.58
+0.29%
Nasdaq
4886.94
-4.28
-0.09%
Gold (spot)
1200.90
+1.10
+0.1%
Silver
1670.1
-36.8
-2.2%
S&P 500
2066.96
+5.94
+0.29%
Transportation
8605.31
-95.03
-1.09%
Russell 2000
1255.66
+15.25
+1.23%
Nasdaq100
4316.01
-16.85
-0.39%
Crude
49.14
+0.27
+0.6%
Heating Oil
169.22
-3.67
-2.1%
Unleaded
Gas
1.7531
-0.0320
-1.8%
10 Yr. Note
Natural Gas
2.713
+0.074
+2.8%
VIX
14.67
-0.40
-2.7%
Put/Call Ratios
S&P 100
70/100’s
-25/100’s
Put/Call Ratios
CBOE Equity
69/100’s
+3/100’s
Bonds
164-18 +05
2.52% flat
CRB Inflation
Index
216.09
+0.93
+0.4%
AAII
Confidence
Index
Barron’s*
Confidence
75.0%
-1.6%
S&P100
901.10
+0.91
+0.10%
5 Yr. Note
120-12 +11
1.34% -0.08%
Dollar
96.77
-0.62
-0.6%
DJ Utilities
589.87
+9.36
+1.61%
Bullish
35.4%
-3.0%
Bearish
32.0%
+7.5%
Neutral
32.6%
-4.5%
M1 Money
Supply
+9.84%
M-2 Money
Supply
129-054 + 154
1.92%-0.01%
March 23rd
Copper
273.40
-3.35
-1.2%
+5.81%
March 23rd
Prices are copied from Barron's Weekly and Yahoo Finance and may be incorrect * Component Change in the
Confidence Index
M1...all money in hands of the public, Time Deposits Traveler's Checks, Demand Deposits
M2.. adds Savings and Money Market Accounts both compared with the previous year.
TECHNICAL INFORMATION
Support/Resistance Levels:
SUPPORT
S&P 500
Dow
QQQ
NASDAQ
2021
17,280
104.40
4810
RESISTANCE
2076 2138
18,085
107.30
4940
New Stock Recommendations $ 100,000
Princeton Research Market Strategies Newsletter
Page3
Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.
Purchase Purchase Stop/Loss
Price/Date
Profit/($
Price
Date
Sold
920Loss)
STEM 2500
SCO 60
OSIR 300
GILD 50
ARRY 500
FORM 500
NAT 500
BAC. Wts
5,000 lots
BSBR 500
BCRH 300
SAN 600
XCO 1200
INO 500
AA 500
FCX 150
NBG 300
XRGYF
5000*
RPTP 400
NBG 300
TEXQY*
200
REPR*
5000
0.99
78.82
16.34
102.73
8.02
8.56
10.16
0.7411
03/30
03/26
03/04
03/03
02/24
02/13
02/13
12/26
4.84
16.84
8.40
3.10
9.92
14.21
34.99
2.95
0.407
12/18
12/18
12/16
11/28
11/17
10/16
09/09
05/19
03/14
15.37
4.08
6.56
01/16
8/12
7/11
0.22
10/22/12
83.48 04/01
$ 280
.12 sco
Recommendations will be both listed in this letter and texted to members. Previous closed out trades can
seen on each preceding weekly market letter. Closed out trades are published on each previous tabloid
March 30th;23rd;16th; 9th; 2nd; Feb 23rd; 16th; 9th; 2nd; Jan 26th;19th;12th;5th; December 29th; 22nd;15th; 8th;1st;
New Options Trades :
Large Account: Additional trades and stop losses will be Texted and E-Mailed
The new number has been provided. Call Dave Rodgers if there are problems at (832) 236- 3640.
Or Mike King 702 650 3000 ; Charles Moskowitz 781 826 8882
There were two closed long option positions, losing a total of $ 297. There was one closed out stock
position, the SCO showing a profit of $ 280 netting a loss of $ 17 for the week.. We added one new long
position: 2500 shares of STEM At $ 0.99. For the full year to date, we have gains of $ 17,718.00. Open
position losses decreased to $ 10,627.00. There are four long Open Option positions: ARRY June 8 Calls;
the FEYE April 39.50 Calls; the Pfizer April 35 Calls and the Sysco April 38 Calls:
The Stock table has the following 22 positions: AA, ARRY, BAC.B.WS, BCRH, BSBR, FCX, FORM;
GILD; IMAX; INO, NAT; NBG (3), OSIR, REPR, RPTP, SAN,STEM, TEXQY, XCO, XRGYF:
Princeton Research Market Strategies Newsletter
Page4
The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless
otherwise specifically stated. We are basing money management on a hypothetical $ 100,000.00 and are using
a total of $80,086.00 for the 22 open stock positions. There are four long option positions requiring $ 3,771.00
totaling $ 83,857.00, leaving $ 16,143.00 in Cash. These figures are approximate and there might be errors.
We have not counted the dividends received from Apple, JP Morgan, BSBR ( Brazil ), Santander, Blue Capital
Reinsurance and others. Blue Capital issued a special extra dividend of $ 0.66 per share which enabled us to
reduce our cost by that amount. In addition it pays about 7% per year in regular dividends. We do not count
commission costs and all trading once again is hypothetical.
Executions that have occurred at or near the open or close of trading sometimes vary from our actual numbers.
For example, when something opens down and it is through our price, we take the next trade whether it is an
uptick or continues lower. This sometimes results in a 50% trade that is slightly above or below the exact
number...








Previous Week’s Recommendations and Rules for the $ 100,000 account
Text UPDATES to number provided
All options count for about $ 2,500.00 for model portfolio calculations unless otherwise stated.
When the option has doubled sell half the position.
Stop Loss protection is half if Option trades above 50 Cents or offered with each trade.
The cost of the option is the asking price (or the price between the bid and ask, whichever is more
realistic)
The options will be followed until closed out.
Option Symbols are stock symbol with expiration month and strike price
Subscribers can follow us on Twitter or call 702 650 3000 for up to date information.
Option
COST
Date
FEYE April 35
12 lots
SYY April 38
24 lots
PFE April 25
30 lots
Calls
1.00
Calls
0.49
Calls
0.21
04/02/15
GLD April 116
12 lots
Calls
1.12
03/27/15
Sold
Date
Profit/(Loss)
0.42 ( Sold
Half on 100%
Up Rule
0.61
03/30/15
$ 315
03/30/15
( $ 612 )
03/30/15
03/26/15
Calls
03/25/15
0.90
Note: Previous closed out stock and option positions can be found in the March 23rd;16th; 9th;2nd; February 23rd;
16th; 9th;2nd; January 26th;19th;12th; 5th; December 29th;22nd;15th;8th;1stand past weekly letters.
ARRY June 8
12 lots
This Weeks' Economic Numbers, Earnings Releases and Media Data
Before the Open on top of the Row; After the close below the Economics Information
Ocwen Financial ( OCN -1.88 vs 0.74 )
MONDAY
10:00 hrs ISM Services March ( 56.9 vs 56.9 )
TUESDAY
A Schulman ( SHLM ( 0.39 vs 0.39 ) Perfect World ( PWRD 0.37 vs 0.54 )
Greenbrier ( GBX 1.20 vs 0.51 ) Schnitzer Steel ( SCHN -0.10 vs 0.13 )
10:00 hrs JOLTS-Job Openings Feb ( NA vs 4.998Mln )
15:00 hrs Consumer Credit Feb ( $11.5Bln vs $11.6Bln )
Princeton Research Market Strategies Newsletter
Page5
Ducommun ( DCO 0.29 vs -0.42 ) Synnex SNX ( 1.52 vs 1.25 )
WEDNESDAY
Family Dollar ( FDO 0.73 vs 0.80 ) Rite Aid ( RAD 0.08 vs 0.10 )
THURSDAY
Alcoa ( AA 0.25 vs 0.09 ) Apogee ( 0.43 vs 0.27 ) Bed Bath ( BBBY 1.80 vs1.60 )
Pier 1 Imports ( PIR 0.36 vs 0.60 ) WD40 ( WDFC 0.72 vs 0.67 )
Constellation Brands ( STZ 0.94 vs 0.81 ) Walgreens Boots Alliance 0.94 vs 0.91
FRIDAY
Hanger ( HGR 0.44 vs 0.62 ) Ruby Tuesday ( RT -0.03 vs -0.07 )
AZZ ( AZZ 0.59 vs 0.40 )
07:00 hrs MBA Mortgage Index 04/04 ( NA vs +4.6% )
10:30 hrs Crude Inventories 04/04 ( NA vs +4.766 Mln Bbls )
14:00 hrs FOMC Minutes
08:30 hrs Initial Claims 04/04 ( 287 vs 268K )
Continuing Claims 03/28 ( 2407 vs 2416K )
10:00 hrs Wholesale Inventories Feb ( 0.3% vs 0.3% )
10:30 hrs Natural Gas Inventories 04/04 ( NA vs -18bcf )
08:30 hrs Export Prices Ex-Agriculture Mar ( NA vs +0.2% )
Import Prices Ex-Oil Mar ( NA vs -0.3% )
14:00 hrs Treasury Budget Mar ( NA vs -$36.9Bln )
Fundamentals:
The Employment Report was bearish with the creation of just 126,000 new jobs reported and reducing
previously reported jobs by about 69,000, while the markets were closed. The futures markets which
were open about 45 minutes had the Dow off 165 points and the S&P 500 down 20 points. In the short
time allotted traders showed their disappointment as February Jobs were cut to 264,000 from 295,000
and January to 201,000 from 239,000.
The Dow gained 50.58 points, not much compared to its loss the previous week of 415 points more than
wiping out all the gains in March. The S&P 500 gained 6 points , while the DJ Transportation Index fell
sharply again down 95 points or a full percent. Nasdaq continued its losing ways down 4.28. .
Princeton Research Market Strategies Newsletter
Page6
The lone encouraging index is the Russell 2000, which gained 15 points or 1.23% after falling the least
the previous week ( 2.05% ) and got nowhere close down to support at its 50 day moving average. The
DJ Transportation Index is by far the worst most disappointing performer. It has dropped from the 9,250
level to just 8,605 during the last three months indicating non-confirmation for the entire bull market. It is
just above critical support at the 8,575 level which remains to be seen if it can hold.
Meanwhile the bulls are running rampant in China as their stock index made again a new all-time high.
YINN ( YINN: 45.35 ) +7.47 points or 19.7% last week. The YANG ( YANG: 8.02 ) down 2 whole
points or 20% is the 3x bear ETF. The CNXT ( 45.31 ) + 2.96 points or 7%, specializing in computer
software is another bull ETF. American multinational companies will continue to benefit from Chinese
success as they participate in foreign profits, the most in a decade that has drawn scrutiny from
regulators. Many companies in the S&P 500 Index including such names as EBay ( $ 57.63 ), Verisign
( VRSN: $ 66.29 )and Stryker ( SYK: $ 92.56 ) set aside those profits to buy stock, pay for capital
improvements, such as factories and equipment and even to fund daily operations. Incidentally stock
buy backs usually take place after earnings reports, nor prior. U.S. companies are still sitting on a
record $2.1 trillion in foreign earnings, including about $690 billion in cash. I dollar terms there has been
about 7% repatriation in 2014 the most since Congress declared a tax holiday for them in 2005 when
they brought home $ 359 billion. The strong dollar is another impediment for repatriation of capital. The
success of US firms in Asia has been and continues to be a huge profit center.
Economics
Nonfarm payrolls added only 126,000 new jobs in March, down from a downwardly revised 264,000 (from
295,000) in February. The Briefing.com Consensus expected nonfarm payrolls to increase by 250,000.
Private payrolls increased by 129,000 jobs, down from a downwardly revised 264,000 (from 288,000) in
February. The consensus expected private payrolls to add 245,000 jobs.
That was the first time jobs growth did not exceed 200,000 since February 2014, and it was the smallest
increase since 109,000 jobs were added in December 2013.
The disappointment was not an unmitigated disaster. Average hourly earnings increased by a solid 0.3%
after increasing by only 0.1% in February, but those gains were offset a significant cut in the number of
hours workers. The average workweek fell to 34.5 hours in March from 34.6 in February.
Altogether, aggregate earnings increased by only 0.1% in March, down from a 0.3% increase in February.
A 0.1% increase in income isn't enough to support a meaningful acceleration in consumption growth.
February was weak across the board in areas of the country that were not hard hit by inclement weather,
like California, experienced some of the same slowdowns that were seen in the Midwest and Northeast.
Weather conditions in March were milder than February. Softer job growth should have appeared a month
earlier in February.
Researchers from the Chicago Federal Reserve modeled extreme inclement weather impacts on economic
growth and found that there were very little effects. Last year, when inclement weather was blamed for the
first quarter contraction, the researchers found that the weather impact was extremely minor.Economic
growth is just not as robust as many expected overlooking the effect of a strong currency.
Category
MAR
FEB
JAN
DEC
NOV
126K
264K
201K
329K
423K
Establishment Survey
Nonfarm Payrolls
Princeton Research Market Strategies Newsletter
Page7
Goods-Producing
-13K
20K
51K
64K
76K
Construction
-1K
29K
41K
44K
30K
Manufacturing
-1K
2K
17K
19K
45K
142K
244K
151K
255K
338K
26K
32K
35K
0K
61K
Financial
8K
7K
19K
7K
28K
Business
40K
42K
20K
72K
96K
Temporary help
11K
-8K
-8K
21K
31K
Education/Health
30K
34K
50K
54K
51K
Leisure/Hospitality
13K
70K
24K
56K
42K
Government
-3K
0K
-1K
10K
9K
Average Workweek
34.6
34.6
34.6
34.6
34.6
Production Workweek
33.7
33.8
33.7
33.8
33.8
4.3
4.3
4.4
4.6
4.6
-0.2%
0.2%
0.2%
0.3%
0.4%
0.3%
0.1%
0.5%
-0.2%
Service-Providing
Retail Trade
Factory Overtime
Aggregate Hours Index
Avg Hourly Earnings
CYCLES
April began with many negative indicators. The biggest nightmare for the bulls has been the negative divergence
of the DJ Transportation Index which has been plummeting even when the Dow and S&P were at their highs.
With the exception of three trading days in March, it has been negative since March 4 for S&P 500. DJIA has
been negative since March 5 with just two brief days positive. The MACD signals that occurred on the fourth and
fifth of March, just a few days after DJIA and S&P 500 closed at all-time highs, highlight the importance of MACD
crossovers. Since then, DJIA and S&P 500 have been trading in an increasingly narrow range on either side of
their respective 50-day moving averages while Stochastic, MACD and relative strength indicators have drifted
lower toward oversold levels. Selling with indicators near oversold levels is not the best exit.
Furthermore, although the market has been weak recently it has been so during a typically seasonally weak time
period. April’s prowess for gains, in all years, and especially pre-election years like 2015 is yet another reason to
look for buying opportunities. DJIA has been up nine years in a row in April with an average gain of 3.1%. April is
also DJIA’s best month of the year and S&P 500’s third best since 1950. Even in years when March was
negative, the odds of a solid advance in April remain respectably high. Going back to 1950, both DJIA and S&P
500 have declined 22 times in March. Following that decline, DJIA and S&P 500 advanced 14 times in April with
average gains exceeding 1%.
The first trading day of April and the second quarter, has enjoyed exceptional strength over the past 20 years,
advancing 16 times with an average gain of 0.56% in all 20 years for S&P 500. Declines occurred in 2001, 2002,
2005 and 2013. In 2013, April 1 was also the day after Easter which has been the S&P 500’s worst post-holiday
trading session. From 1984 to 2003, S&P 500 declined 16 times. In the ten years since, S&P has been up seven
times, but down three of the last four years.
April marks the end of the“Best Six Months” for DJIA and the S&P 500.April 1999 was the first month to gain
1000 DJIA points. However, from 2000 to 2005, the “Tax” month was hit, declining in four of six years. Since
2006, April has been up nine years in a row with an average gain of 3.1% to reclaim its position as the best DJIA
month since 1950. April is third best for S&P and fourth best for NASDAQ (since 1971).
Princeton Research Market Strategies Newsletter
Page8
Typical pre-election year strength does bolster April’s performance since 1950. April is DJIA’s best month in preelection years (+4.2%), second best for S&P 500 (+3.6%) and third best for NASDAQ (+3.7%). Small caps,
measured by the Russell 2000 also perform well with gains (+3.4%) in seven of nine pre-election year April’s
since 1979.
Psychological: Bullish. And it just doesn’t matter. The S&P 500 has not had an official 10% correction since
October 2011 and any dip since has been a good buying opportunity. Last week the S&P 500 closed below both
its 13 and 50 day moving averages which it has done twice before in March. The Russell 2000 was not to be
denied, bucking the trend and closing above both critical indicators. We should buy the IWM on and perceived
weakness because of the bearish employment report. This is not a bear market, but for now the negative
fundamentals, slowing economy, will only mean the market’s advance is going to slow down a little.
Fundamental: Mixed. The labor market gains slowed dramatically due to slower manufacturing orders. This is a
normal process when the dollar strengthens to such enormous levels like a price of 100, up more than 10% since
December. Therefore, it is looking like 2015 Q1 GDP will be soft. Any weakness will likely be overcome as no
nation suffers for long just because its currency is in high demand. Other economic data, like housing will
improve now with the arrival of spring.
Technical: Range bound. The market continues its struggles as it did in March. Both the DJIA and S&P 500
appear to have only extended the upper end of their trading ranges that started in December. NASDAQ and
Russell 2000 look stronger. The problem is with the Tranny, the DJ Transportation Index which must find a
bottom it we are to go forward. Both the Nasdaq and Russell have remained above their 50-day moving
averages and their February breakout levels throughout March. Watch NASDAQ’s and/or Russell 2000’s next
move for an indication of where the market is most likely headed next, higher or lower. The IWM, the Russell ETF
is a buy.
Stocks and ETF’s bought over the past few weeks: We no longer have positions in the VXX, SPXU or
UDOW Both the VIX and SPXU protect against declines while the UDOW and various stocks reflect the
long side. VIX is a measure of market expectations of near term volatility conveyed by S&P 500 Index
Option prices. We have shown this table for the purpose of being both profitable and somewhat protected
for much of the time while maintaining profitable long positions. We have no positions now as volatility as
the market is consolidating. Please check on the previous weekly market letters if there are questions. We
were stopped out of the Alcoa at 12.75. That was our mistake as we want to be long Alcoa. We also
bought the Diana Shipping at 6.60. The Scorpio Tankers were not ever filled as the market never got to our
price. Try to buy a scale down on this move. The tanker shippers like NAT and GLNG are doing much
better than dry shippers like Diana Shipping. We were stopped out of the Mosaic with a profit. Buy GLNG in
liquefied N.G. at $ 32 about the 50 day moving average. We were stopped out of the XLV at 72 which we
raised last week In addition we are long the DSX and Scorpio Shippers. We would try to buy CHK and
XOM about 5-10% lower this week.( All trading is hypothetical and intended as guidance)
Symbol Name
Business Description
PE
P/S
MV
mln
Price
AA
XOM
CHK
GLNG
Aluminum
Oil and Gas
Oil and Gas
Liquefied N.G.
Hedging
11
11
7.50
NA
0.66
0.96
0.45
30.39
16.06B
351B
9.31B
3.14B
13.14 13.03
Alcoa
Exxon Mobil
Chesapeake
Golar
Princeton Research Market Strategies Newsletter
Buy Limit
84.30 83.15
14.59 13.40
33.38 32.44
Page9
Stop Loss
Or sold
12.60
80
12.15
30.50
SAN
XLV
DSX
STNG
Santander
Health Care
Spider
Diana Shipping
Scorpio Tankers
Banking world-wide
ETF
14
2.34
Dry Cargo Shipping
Oil Transportation
N/A 3.7
26
5.6
91.6B
611
1.47B
7.64
7.28
6.80
73.04
70
6.05
9.45
6.60
72 stopped
out
5.90
7.48
7.46
unable
Other Stock Recommendations:
Spanish bank Banco Santander (SAN) is outperforming right now. In the last six months, this $98 billion
banking play has shed 30% of its market value, dragged lower by ongoing issues in the Eurozone financial
system. But things could be about to change for long-suffering shareholders. SAN is starting to show signs of a
bottom here. They will have better earnings having cut dividends.
Santander is currently forming a double bottom pattern, a bullish reversal pattern that looks just like it sounds.
The double bottom is formed by a pair of swing lows that find support at approximately the same price level.
The buy signal comes on a breakout through the peak that separates though two troughs. For SAN, that's the
$7.40 breakout level.
RMS Medical Systems, Inc ( REPR 0.40 )* Has doubled this year already and can double again .
RMS designs, markets, manufactures portable easy to operate infusion devices, including needles and tubing.
It is easy to handle by patients. The Freedom 60 is being marketed in Europe as well as gaining a footing
among home-care professionals in America. The RescueVac is used in ambulances and planes for emergency
suction.
Enzo Biochem ( ENZ: NYSE: $ 2.88 ) This company does almost $ 100 million a year in sales. We bought
Enzo and got stopped out two weeks ago I would be stubborn and try to buy it again especially if it got to the
$ 2.60-2.70 level risking 30 cents. I am basing my belief that the fundamentals will overcome the technical
pattern. $ 3.02 is approximately the 13-day moving average. If it can’t close above this number, we can’t be
long the stock. Fiscal 2015 (July) got off to a solid start with Q1 (Oct) results continuing to affirm our belief that
Enzo’s core businesses are improving. Once again, revenue, gross profit and adjusted EBITDA were all better
than projected, with revenue growth in both the clinical lab and life sciences businesses. Gross margin in both
businesses continued to improve, as the ongoing shift toward higher value molecular testing and efforts to
improve operational efficiency continue to bolster margins. The company’s balance sheet remains on good
footing while catalysts in the form of new products and litigation remain in play. Accordingly, we reiterate our
Buy rating and $7 price target.
What keeps us excited about ENZ is (1) a clinical lab which is highly attractive to numerous strategic buyers;
(2) a proprietary molecular diagnostic technology that could cut the cost of molecular testing by about 50%; and
(3) IP litigation that could yield hundreds of millions of dollars over time
Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121
Or: Charles Moskowitz
CAM@MoneyInfo-LLC.com
781 826 8882
Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com or cam@princetonresearch.com
Visit: www.princetonresearch.com
Princeton Research Market Strategies Newsletter
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of Leo Motors. Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, readers should recognize that not all
recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this Email
issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.
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