The Technology Stock Advisor Newsletter

Published by Investment Management & Insurance Advisors, Inc., of Raleigh, N. C.

Professional Portfolio Management With A Patented Technology Stock Selection Methodology

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Featured at 1888PressRelease.com - Thomas Vass
Business Xpansion Journal Publishes Article on �Ob...
January, 2009 @ 1888PressRelease.com

 

Business Xpansion Journal Publishes Article on “Obama’s Entrepreneurial Moment

Vass cites 3 major innovation economic growth options open to Obama.

(1888PressRelease) January 08, 2009 - Raleigh, NC. Business Xpansion, the nation’s leading industrial relocation and economic development journal, published Innovative Opportunities: Obama's Entrepreneurial Moment, by Thomas E. Vass, in its January edition.

Vass is one of the founders of the new national professional association, The Innovation Economics Alliance, LLC, based in Reston, Va.

“We are advocating a new approach to the nation’s economic strategy, based upon metro regional capital markets that target investments to regional technological commercialization,” said Vass. “The Obama administration is getting many different policy options from traditional economic consultants and lobbyists, none of which will solve the long-term structural weaknesses in the U. S. economy,” he added.

 

 

Thomas Vass Featured
The Top 5 2009 Technology Stocks...
December, 2008 @ 1888PressRelease.com

(1888PressRelease) December 31, 2008 - Raleigh, N.C. The Technology Stock Advisor, an online investment newsletter, issued its top 5 technology stock picks for 2009, today.

 

For Immediate Release: October 6, 2008
Contact Tom Vass, tvass@technologystockadvisor.com
 
 
Vass Says If Obama wins buy Ingorsoll Rand. If McCain Wins, Invest in Molex
 
 
Raleigh, N. C. In AOL’s Money & Finance national campaign stock picking contest among 15 of the top money managers in the country, Raleigh,’s Tom Vass picked two technology stocks that would benefit from the new President’s policies. . http://money.aol.com/investing.
 
Vass is the investment advisor to the online newsletter The Technology Stock Advisor, (www.technologystockadvisor.com).
 
The 15 money managers were selected by Steven Halpern, who runs an online media service called The Stock Advisors, which tracks and monitors the performance of money managers.
 
For an Obama victory, Vass said that Obama’s idea of a new national infrastructure reinvestment bank would benefit Ingorsoll Rand, (IR).. The company designs, manufactures, sells, and services a range of industrial and commercial products in the United States and internationally. (http://www.bloggingstocks.com/2008/10/13/obama-stock-invest-in-infrastructure-reinvestment-bank/)
 
Vass noted that the new program may have the potential to create a significant number of jobs. "The national infrastructure reinvestment bank will receive an infusion of federal money,” said Vass, “over $60 billion over 10 years, to provide financing to transportation infrastructure projects across the nation.”
 
For a McCain victory, Vass advised buying shares of Molex (MOLX). "A McCain victory would allow for a first year expensing of new equipment and technology;” said Vass, “and we would recommend Molex (NASDAQ: MOLX), which is strongly positioned in the global technology value chains,”
 
Molex Incorporated manufactures and sells electronic components worldwide. It offers micro-miniature connectors, SIM card sockets, keypads, electromechanical subassemblies, and internal antennas and subsystems for telecommunications market; and power, optical, and signal connectors and cables for end-to-end data transfer, linking disk drives, controllers, servers, switches, and storage enclosures for data products market.
 
Vass holds a business method patent on selecting technology stocks, which is based on his ideas about how technology evolves in technology values chains. (Predicting Technology, 2007). Vass uses his method to select stocks for his newsletter, and applies the method for his individually-managed accounts.
 
“I was honored to participate in the competition with all the distinguished money managers,” said Vass. “No matter who wins the election, I am looking forward to a much better investment environment beginning in 2009.”
 
About the Technology Stock Advisor Newsletter: The Technology Stock Advisor offers Do-It-Yourself  investors detailed stock selection advice for an annual subscription of $120. The stock selection advice includes the buy target price and the sell target price, and offers daily updates on all stocks being followed. Individual portfolio management is also available for family wealth accounts, trust accounts and retirement plan assets. www.technologystockadvisor.com
 
 
 
For Immediate Release: September 17, 2008
Contact: Thomas Vass, 919 9754856 tvass@technologystockadvisor.com
Stock Hits Target Sell Price of $55. Initial Target Buy Price Was $36.
 TSA Advice is to Take The Gain.
 
Raleigh, N.C. The Technology Stock Advisor, an online newsletter about investing in technology stocks, issued a sell recommendation on Fastenal today.
 
The initial target price to buy the stock was set to buy below $36 per share, and the target price to sell was set at $55.
 
“Fastenal continues to be included in our active portfolio,” said Tom Vass, of Raleigh, N.C., the investment advisor to the online newsletter. “The stock was recently added to the S & P 500 Index,” said Vass, “and they currently rate it as one of their A stocks in terms of quality.”
 
Vass noted that the investment method that he follows emphasizes taking the gain when the stock hits the TSA Sell Target Price.
 
Fastenal Company, together with its subsidiaries, sells industrial and construction supplies. The company offers threaded fasteners, such as bolts, nuts, screws, studs, and related washers, as well as miscellaneous supplies, such as paints, various pins and machinery keys, concrete anchors, batteries, sealants, metal framing systems, wire ropes, struts, private-label stud anchors, rivets, and related accessories. These products are used in manufactured products and building projects, and in the maintenance and repair of machines and structures.
 
About The Technology Stock Advisor. The weekly newsletter offers detailed investment advice on technology stocks to buy, including the buy price and the sell price. The annual subscription price is $120. The newsletter is updated daily. www.technologystockadvisor.com
 
For Immediate Release: September 10, 2008
Contact: Thomas Vass, 919 9754856 tvass@technologystockadvisor.com
 
Raleigh, N.C. The Technology Stock Advisor, an online newsletter about investing in technology stocks, issued a sell recommendation on Quality Systems, today.
 
“Quality Systems is a terrific technology stock, and has been in our active investment portfolio since November of 2007,” said Tom Vass, the investment advisor to the newsletter.
 
The initial target price to buy the stock was set to buy below $31 per share, and the target price to sell was set at $45.
 
“Our patented investment strategy suggests to us that technology stocks generally move in a 3 year cycle related to spending on research and development and introduction of new products,” explained Vass. “QSII met all of our initial screening criteria, and moved up fairly quickly in price over a seven month period of time. It is important to our business method to take the capital gain, whenever that moment arrives.”
 
Quality Systems, Inc. engages in the development and marketing of healthcare information systems in the United States. Its system automates various aspects of medical and dental practices, and networks of practices, such as physician hospital organizations and management service organizations, ambulatory care centers, community health centers, and medical and dental schools. The company offers proprietary electronic medical records software and practice management systems under the NextGen3 product name.
 
About The Technology Stock Advisor. The weekly newsletter offers detailed investment advice on technology stocks to buy, including the buy price and the sell price. The annual subscription price is $120. The newsletter is updated daily. www.technologystockadvisor.com
 
For Immediate Release: Wednesday, August 27, 2008
Technology Stock Advisor News Alert:
 Five High Technology Companies Added to TSA Active Stock Investment List
Issues a Sell on Carbo Ceramics (CRR) Hits Price Target of $60. Initial Buy Target Was $38,
 
Corporate Innovation In A Global Market Demands Companies Rich in Operating Cash Flow
 
Contact: Tom Vass, Technology Stock Advisor, tvass@technologystockadvisor.com
 
Raleigh, N. C. Citing the recent management trend of global corporate outsourcing of innovation in global value chains, The Technology Stock Advisor, an online newsletter, initiated coverage of five technology companies that are rich in operating cash flow.
 
“In order to conduct innovation in today’s global markets,” said Tom Vass, the advisor to the newsletter, “companies must do two things well. They must outsource the search for technological innovation to trading partners around the globe, and they must have high reserves of internal cash to finance the corporate innovation projects.”
 
The table below describes annual operating cash flows for the five companies added to the TSA active stock investment lists.
TSA holds a patent on the intellectual property of technology stock selection. “Our patented stock selection method investigates the operational cash flow of companies over a 3 year period,” explained Vass. “We are looking for indications of how senior management is handling the issue of free cash flow because we suspect that there is a relationship between cash flow, corporate innovation (CI), and a subsequent rise in the stock price.”
 
“We also want the company to share profits with shareholders in the form of dividend payments,” said Vass. “This represents a balancing act on how best to use internal corporate resources, such as cash.”
 
TSA also issued a sell recommendation on a C Rated stock, Carbo Ceramics (CRR). “Carbo Ceramics met all of our screening criteria as an active stock, and we set the initial buy target on CRR at $38. It hit our Sell Target Price of $60 on Tuesday, August 26, 2008, and we advise taking the 58% gain,” said Vass.
 
About BorgWarner (BWA). BorgWarner, Inc. engages in the manufacture and sale of engineered automotive systems and components primarily for power train applications worldwide. It operates in two segments, Engine and Drivetrain. http://www.borgwarner.com/
 
About A.M. Castle & Co. (CAS). A.M. Castle & Co operates as a specialty metals and plastics distribution company in the United States, Canada, Mexico, France, the United Kingdom, and Singapore. The company operates in two segments, Metals and Plastics. http://www.amcastle.com
 
About Donaldson Company, Inc. (DCA). Donaldson Company, Inc., through its subsidiaries, engages in the manufacture and sale of filtration systems and replacement parts worldwide. It operates in two segments: Engine Products and Industrial Products. http://www.donaldson.com
 
About Kennametal, Inc.(KMT). Kennametal manufactures and sells tooling, engineered components, and advanced materials used in production processes. The company operates through two segments, Metalworking Solutions and Services Group (MSSG); and Advanced Materials Solutions Group (AMSG). http://www.kennametal.com
 
About McKesson Corporation, (MCK). McKesson Corporation, together with its subsidiaries, provides supply, information, and care management products and services for the healthcare industry. It operates in two segments, Distribution Solutions and Technology Solutions. http://www.mckesson.com
 
About The Technology Stock Advisor. The weekly newsletter offers detailed investment advice on technology stocks to buy, including the buy price and the sell price. The newsletter is updated daily. www.technologystockadvisor.com. Annual subscriptions are $120.


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For Immediate Release: Thursday, August 21, 2008
 
Total System Services (TSS) 
Hill-Rom (HRC)
 
Contact: Tom Vass, Technology Stock Advisor, tvass@technologystockadvisor.com
 
Raleigh, N. C. Calling Total Systems Services, “pristine investment grade,” Thomas E. Vass, the investment advisor to The Technology Stock Advisor Newsletter, announced two new additions to the TSA active stock investment lists.
 
“Earlier this year, Total Systems had moved from my active investment stocks to my TSA Watch List after an unexpectedly sharp rise in their long-term debt obligations,” said Vass. The company’s long-term debt, which had increased to $268 million, recently dropped back to $192 million and re-met one of the TSA screening criteria for long term debt-to-shareholders equity.
 
“I have known for many years of Total Systems’ dedication to corporate innovation and their ability to generate new products and services, and had been monitoring their progress in bringing their long-term debt-to-shareholder equity back in line,” Vass explained.
 
Companies that move from the TSA Watch List to the TSA Active Investment List are assigned a quality rating, based upon the quality ranking given by Standard & Poor’s. Standard & Poor’s is a global leader in credit ratings and credit risk analysis, and quality ratings.
 
“I have come to trust the S & P quality rating as a supplement to my own stock selection criteria,” Vass said.
 
Vass assigned TSS an initial target buy price, and the target sell price. “Generally, but not in every case, the target sell price is set at about two standard deviations from the stock’s average price range,” said Vass.
 
Hill-Rom, the other company added to the TSA active investment list, is a recent spin-out from the parent corporation, Hillenbrand Industries, Inc. The company filed the Form 10 registration statement for the spin-out with the U. S. Securities and Exchange Commission (“SEC”) on November 5, 2007.
 
HRC makes equipment for the health care industry, provides associated services for wound, pulmonary and circulatory care, and offers medical equipment outsourcing and asset management services.
 
“Our initial stock screening process begins by searching for companies undergoing corporate innovation (CI),” said Vass. “Our method is based upon a theory of technology that suggests to us that companies undergoing innovation may experience a boost in their stock price within a 3 year period.”
 
“When HRC was spun off from the parent company, it met many of the initial screening criteria set by TSA for inclusion in our active stock investment lists,” he explained. HRC was assigned the TSA rating of B, following the S & P rating of the company.
 
TSA holds a patent on the intellectual property of technology stock selection. “Our patented stock selection method discovers companies in global industrial value chains where most new technology is created that drives corporate innovation,” said Vass. “HRC fits perfectly with our investment selection methods.”
 
About TSS. Total System Services: A Rated by S & P
SIC: 7389 – Information Technology Services
TSS provides electronic payment processing and related services to financial and non financial institutions. Services include processing consumer, retail, commercial, government services, stored value and debit cards. Based in Columbus, they offer merchant acquiring services to financial institutions and other organizations in the United States through their wholly owned subsidiary, TSYS Acquiring Solutions, L.L.C., and in Japan through their majority owned subsidiary, GP Network Corporation.
 
About HRC. Hill-Rom: B Rated by S & P
SIC: 3841 – Surgical and Medical Instruments
Hill-Rom is a leading worldwide manufacturer and provider of medical technologies and related services for the health care industry, including patient support systems, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals and health information technology solutions. Hill-Rom’s comprehensive product and service offerings are used by health care providers across the health care continuum in hospitals, extended care facilities and home care settings worldwide, to enhance the safety and quality of patient care and patient customers.
 
About The Technology Stock Advisor. The weekly newsletter offers detailed investment advice on technology stocks to buy, including the buy price and the sell price. The newsletter is updated daily. www.technologystockadvisor.com
 
 
 
 
 
For Immediate Release: Thursday, August 07, 2008
Technology Stock Advisor Issues Stock News Announcement
TSA Newsletter Initiates Coverage On Three New High Technology Stocks and Issues Sell Recommendation on Johnson & Johnson
 
Contact: Tom Vass, Technology Stock Advisor, tvass@technologystockadvisor.com
 
Added to Active Stock Lists
Olympic Steel              (ZEUS)
The Street.Com             (TSCM)
Balchem                       (BCPC)
 
Hit Price Target
Johnson & Johnson            (JNJ) Sell Price Target of $70. Initial Buy Target was $53.
 
Raleigh, NC. The Technology Stock Advisor, a weekly internet stock newsletter covering high technology stocks, initiated coverage today on three new companies and issued a sell recommendation for one company that hit the TSA sell target price.
 
“Our initial stock screening process begins by searching for companies undergoing corporate innovation (CI),” said Thomas Vass, the investment advisor to the newsletter.
 
“Our method is based upon a theory of technology that suggests to us that companies undergoing innovation may experience a boost in their stock price within a 3 year period,” he added.
 
Once the stocks make it through the technology screening process, the stocks are evaluated for certain financial characteristics. “All major corporations in the world have access to the same capital equipment and same labor skills,” explained Vass. “Much of the difference in stock price appreciation is related to the non-labor, non-capital production factors that affect a firm’s gross profits.”
 
“We want to find indicators that senior management of the company is consistently making good use of corporate innovation resources because we believe that innovation is the single greatest factor today in driving stock market prices,” he stated.
 
Two of the new companies BCPC and ZEUS had met some of the initial TSA criteria, and had been placed in the TSA Watch List of Stocks to be monitored. “After some considerable length of time in the Watch List,” said Vass, “both companies met all the criteria and moved to the active lists, with newly established target buy prices and target sell prices.”
 
One of the companies, TheStreet.com, went directly on the TSA active list after being discovered in the daily search for stocks undertaken by TSA.
 
In addition to the 3 new companies, The Technology Stock Advisor issued a sell recommendation on Johnson & Johnson, at the target sell price of $70. “J&J is a terrific technology company,” said Vass, “but one of the important rules of our method is to take the gain when the stock hits our target sell price.”
 
 
 
TSA holds a patent on the intellectual property of technology stock selection. “Our patented stock selection method discovers companies in global industrial value chains where most new technology is created that drives corporate innovation,” said Vass.
 
About The Technology Stock Advisor. The weekly newsletter offers detailed investment advice on stocks to buy, including the buy price and the sell price. The newsletter is updated daily. www.technologystockadvisor.com
 
 
 
 
For Immediate Release: June 30, 2008
Increased Long Term Debt Threatens Technology Innovation of American Companies
 
Contact Tom Vass, tvass@technologystockadvisor.com Raleigh, NC 919 975 4856
 
 
 
Vass cited the tough global economic conditions, which are causing top line revenues to decrease for most American technology companies. “The companies are taking on increased long term debt at the very moment that their sales are being affected by the global economic slow-down. The restrictive covenants in their debt agreements will tend to lock them into existing declining markets selling their increasingly technologically obsolete products.”
 
Vass explained that companies that have over 30% long term debt to stockholder’s equity have a difficult time diverting cash flow to the search for either radical innovation, or even the more mundane sustaining innovation. “As a result of being locked into the terms and conditions of the debt, the companies are forced to continue selling products that are on an evolutionary pathway to extinction. Decisions about innovation are more influenced by the outside bankers who demand a stable flow of revenues to repay the debt than by the global market conditions which demand continual innovation investments financed by free cash flow.”
 
As an example of the newsletter’s technology companies that have dramatically increased long term debt, Vass provided the following table:
 
Company and Symbol   Previous Long Term Debt                New Long Term Debt (in millions)
3M MMM
2,824
4,140
Nucor NUE
922
2,491
Multi-Color LABL
0
121
PerkinElmer PKI
234
566
Lennox International LII
95
359
PPG Ind. PPG
1,181
3,369
Triumph Group TGI
120
418
Tennant TNC
2.47
89
Joy Global JOYG
396
567
The Technology Stock Advisor
 
“Some of these companies have been in our active stock lists for many years,” said Vass. “They have been terrific investment candidates in the past, but the tough global markets are causing senior management to adopt financial strategies that are not optimal for the new open, global markets that feature fast innovation life-cycles. Long term debt is cheap today, but succumbing to the lure of cheap debt today will threaten the company’s long term viability to innovate.”
 
The relationship between technological innovation and long term debt as a criteria for stock selection is explained in one of Vass’ books Predicting Technology: Identifying Future Market Opportunities and Disruptive Technologies, (2007).
 
About The Technology Stock Advisor www.technologystockadvisor.com The Technology Stock Advisor is an online weekly newsletter that covers stocks in the high technology industrial clusters in America based upon a patented method for investigating economic relationships in technology value chains. The newsletter provides stock advice, insights and market commentary on innovation trends in American technology companies.
Stocks selected by the newsletter are trading members of the following nine high technology value chains in the U.S. economy:
  • Chemicals
  • Precision Instruments
  • Engine Equipment
  • Computer and Electronic Equipment
  • Information Services
  • Pharmaceuticals
  • Fertilizer and Chemical Products
  • Industrial Machinery and Distribution Equipment
  • Aerospace
 
 
For Immediate Release: June 19, 2008
Technology Stock Advisor News Alert: Two New Companies Added to Technology Stock Watch List
S&P Quality Ranking B-
Western Digital designs, develops, manufactures and sells hard drives worldwide to original equipment manufacturers (“OEMs”) and original design manufactures (“ODMs”) for use in computer systems, subsystems or CE devices, and to distributors, resellers and retailers. They also sell hard drives as stand-alone storage products and integrate them into WD-branded external storage appliances for purposes such as personal data backup and portable or expanded storage of digital music, photography, video, and other data.
 
SIC: 7372 Services-Prepackaged Software
S&P Quality Ranking: B-
MicroStrategy is a worldwide provider of business intelligence software that enables companies to report, analyze and monitor the data stored across their enterprise to reveal the trends and insights needed to make better business decisions. MicroStrategy provides sophisticated analytical performance to business users in the format that suits them best, from high-level dashboards to custom reports and advanced analysis via e-mail, web, fax, wireless and voice communication channels


For Immediate Release: Thursday, May 22, 2008

 


 

For Immediate Release: June 12, 2008
 
Contact Tom Vass, tvass@technologystockadvisor.com Raleigh, NC 919 975 4856
 
  • (CMTL)             Comtech Telecommunications Corp.
  • (RHT)             Red Hat Inc.
  • (CYMI)             Cymer Inc.
 
 

 
For Immediate Release: June 4, 2008
 
Technology Stock Advisor News Alert: New Companies Added to Technology Stock Watch List
Contact Tom Vass, tvass@technologystockadvisor.com 919 975 4856
Raleigh, N.C. The Technology Stock Advisor, an online newsletter investment advisor with a patented stock selection methodology for picking technology stocks, added two new stocks to the newsletter’s watch list today.


 
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