Thursday, April 17, 2008

Current (April 17, 2008) Cheap Growth Ready to Breakout Stocks. Hanes Brands (HBI) is on the List.

Recently, we revisited the Cheap Growth Ready to Breakout Screen. We've looked at the results of several portfolios:
  1. September 12, 2007 to April 11, 2008
  2. Results of Three Portfolios Checked on April 15, 2008.

So what are the current stocks in the Cheap Growth Ready to Breakout Screen?
Stocks are sorted from Highest to Lowest Market Capitalization:

The Current Stocks in Cheap Growth Ready to Breakout Screen

TickerCompany5 yr. GrowthFwd PE
RTPRio Tinto3514.58
AMXAmerica Movil29.6714.53
WFTWeatherford Intl2114.44
FMXFomento Economico2017.05
NENoble Corp25.887.91
LLLL-3 Comm21.2415.26
ESVEnsco Intl20.537.89
FTIFMC Technologies2319.76
AKSAK Steel2016.27
CLRContinental Resources41.416.55
MEEMassey Energy29.8816.48
SPNSuperior Energy26.759.06
ATWAtwood Oceanics33.510.37
HBIHanes Brands22.512.01
EGOEldorado Gold10018.26
WHQW-H Energy2013.63
CRKComstock Resources31.6515.39
SFYSwift Energy30.337.34
PETDPetroleum Dev2017.62
TTEST-3 Energy Services81.2515.36
MEAMetalico Inc4313.04
NCITNCI Inc2115.59

All these stocks have a growth rate greater than their forward PE, and their forward PE is less than 20.

What sectors are the stocks in?

Many of the stocks in the list above are in the commodity sector including oil, energy, steel, and gold. Commodities continue to appear strong.

AMX, an emerging market wireless telecom company, appears to remain a good growth play.

International Markets remain strong. AMX, the Mexican and South America play is on the list, as well as the beer and beverage maker FMX, Fomento Economico.

Hanes Brands??

A surprising entry in this list is Hanes Brands (HBI), a retail play.

As of April 17, 2008, the stock looks like it is breaking out.

Hanes earnings call is scheduled for Monday April 21, 2008.

According to a Barrons Blog:"HANESBRANDS CLEANS UP
The affirmative news in the Hanesbrands (HBI) (besides the fact that macro economic conditions don’t really determine the need for undergarments) story: cotton prices have traded in patterns distinct from other agricultural commodities. In fact, after cotton, which for much of this year was keeping pace with the bulge in farm products, reached its high last month, the commodity has sold off to the tune of about 16%. In addition, the company’s largest customer is Wal-Mart (WMT), as Credit Suisse noted in a research report Tuesday, and Wal-Mart has proved to be one of the more resilient names in the retailing sector, which limits the risk Hanesbrands has to slower retailing traffic. The firm also said the company’s efforts to restructure its costs hasn’t been reflected in the balance sheet. All that suggested there could be some upside in shares, despite the 40% improvement off the January lows, which have carried the stock to within pennies of its highs for the last year."

Hanes Brands (HBI) might be worth looking into.

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