Super Stock Blog

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Month: April 2010

Generic Medication for Wins

Play the generic pharmaceutical market! President Obama recently passed healthcare reform in the United States. This requires everyone to get health insurance. One of the things the bill does to save money is to allow subsidies on drugs and medicines. An additional money saver is to allow subsidies on generic medication.

Lannett CO (LCI) is one of the few generic medication manufactures in the United States. They just recently got approved for their generic medication of Zofran, an injectable GlaxoSmithKline drug used to minimize nausua. Zofran sold about $58 million last year. Last year they mate their first profit after two years of disappointing earnings and getting FDA warnings for their generic drugs. Do you think out of that $58 million people will by willing to switch to a generic version that costs at least 20% less? You betcha! It’s pretty easy to see that their stock can easily double if they took 10% of that Zofran market share.

Other fundamental things that look good – cash is decent and debt is at a reasonable level. Technicals show a bottoming at $4.40 and there’s strong support going back 10 years. Their net income has increased for in a qtr-to-qtr basic for the past year. It also has doubled from the past quarter. With the low stock price and continuing drugs to come aboard the generic medication line, this might be a great time to get in.

Activision Does Not Disappoint!

Activision Blizzard continues to bring in good news. They received an upgrade from the street on last Wednesday. Here’s what they got to say: “Activision Blizzard has gained 18% during the past year, trailing major benchmarks. The stock trades at a price-to-book ratio of 1.4 and a price-to-sales ratio of 3.4, 73% and 48% discounts to peer averages. It’s also cheap based on projected earnings.” Link. –

World of Warcraft continues to make them millions of dollars. They must have the best marketing/sales/product team in the industry. In the past week, they created a new horse called the ‘Celestial Steed.’ They charged WoW players $25 to buy it. In just four hours, they made over $2 million dollars off it. It must have took the designer maybe 1-2 days to design the 3D horse model. Even if it took him a week, they still made tons more than the price to pay the designer to create it. I’m sure Activision will continue to find ways to monetize their games. It’s definitely a model that will be built into future gaming.

They also have a few big hits coming out at the end of the year. Star Craft II is planned to be released in the late summer or fall. Disablo III is planned to come out early next year. The next expansion to World of Warcraft is set to be released for the holidays. There’s still plenty of time to get in before all the action happens, but you can bet the second half of 2010 will be big for the company.

Gamestop is already selling pre-orders for Starcraft II. If you are an avid gamer, you can get into the beta just by pre-ordering the game. They will give you a beta key to start warming up your keyboard touches and mouse clicks. It has already been a hit on Amazon as a ‘Bestseller’ being ranked in the top 200 sellers in video games. They also still have Call of Duty: Modern Warfare 2 making tons of cash. It got recently rated ‘Best Successful Launch in Video Games’ by making over $400 million within one day. It surpassed Grand Theft Auto which had the record at over $300 million.

What can they do for the early part of 2010?

I’d hope they have started creating games for the iPad and moved into the mobile phone field. You can bet Electronic Arts is establishing themselves in these fields after lackluster sales from their console games. Activision has to continue to make strong games that sell. Short-term the outlook is cloudy, but the stock charts have shown strong support to keep the price up. Long-term this stock is a keeper. You have the most popular computer games being released from Blizzard. They will all sure be hits when they come out.

Let’s see what the earnings say on May 6th.

Disclosure: I’m in ATVI and I have puts in ERTS

iGo is Worth the Gamble

I apologize I have not been writing about specific stocks in a while. But I promise to make it up to you with this small-cap stock. It only have a market cap of 60 million but that means there’s much potential in it. The stock symbol is IGOI. The company is called iGo and they make chargers. Their website is at

Why do I like them?

The business is simple. They make chargers and sell them. You can read their SEC filings and you won’t find anything other than that.

They also hold lots of patents. One patent that has got a lot of news is their ability to protect against Vampire power. Check out to find out more information. Vampire power is the power that gets drained out of your devices even though they have already been recharged. This means you are wasting valuable electricity and paying higher prices because of your inefficient chargers.

They have received multiple accreditions from PC World and have won Best of CES 2010 for their green chargers. If you wish to invest in green energy, then you’ve found the company here. Think about if they were to get big companies to buy their iGo chargers. The companies would save a bunch on electricity and be “green friendly.” The government would be a proponent for that.

They also have tons of potential. To give you a little history, they used to be an OEM supplier of chargers. They actually produced chargers for other companies that would rebrand them and sell it. Targus was a major buyer of their products. Many of the new iGo chargers have similar functionality to the old Targus chargers, but with more functions and fixes. Their stock price plummetted in the past few years when their sales starting going down and Targus stopped buying their chargers. Management is doing the right thing – cut the middleman and sell it themselves.

iGo chargers are just beginning to get big. They already have some viral media out with their ‘Vampire Sucks’ videos. They also are giving iGo chargers away through shows like Bonnie Hunt. They need to continue to press social media and get the word out of their chargers. Being new to the game of selling their mechandise, if they can maintain high quality products and get those distributed, they will be a game changer in the recharger business. Exposure is a big thing going forward for them. I doubt many people have heard about this business.

Here’s one of the biggest things I see going forward: Wal-Mart. Yes, they have got accepted to Wal-mart after doing some small trial runs with them. Starting in the second half of 2010, you will see green chargers in Wal-Mart. iGo chargers are already being distributed to Radio Shack and Office Max. You can bet after it gets into Wal-Mart that other big good stores like Target will want to sell their brand.

Currently it sells for $1.73. It was at $1.68 earlier today. The stock was up at a high $2.06 this past month. I am sure the stock will be hitting new highs soon. There’s just so much reward to risk in this stock to pass this opportunity up. It has already broke the last resistance at $1.80. The next resistance would be at $3 which would give it almost a 50% gain from where it’s at right now.

Disclosure: I own IGOI

Brookfield Infrastructure Partners

BIP is a infrastructure stock with over a 6% dividend and a good way to play the growth of the global market.  If you think the market is at the bottom and that the world will continue to grow, this stock represents a great way to play the market.  They own eletricity transmission systems, timber, and social infrastructure around the world.

Their goal is to buy businesses cheap and sell them when they are in an overvalued market. They expect to find many bargains in the next couple years as countries like the UK and US need to sell off their infrastructure to pay costs.  They believe that privatization of utility companies will eventually happen.
Let’s take a look at some things they own:
  • Owns/operates transmission systems and timberlands in North and South America
  • 8,279 kilometers of transmission lines in Chili
  • 2,100 kilometers of transmission lines in Brazil
  • 550 kilometers of transmission lines in Canada
  • 634,000 acres of freehold timberlands on Vancouver Island
  • 655,000 acres of freehold timberlands in Oregon and Washington
  • Third largest port by tonnage in UK and largest in northeast England
  • One of the largest gas transmission pipeline and storage system in the US
  • Gas distribution in Isle of Man, Channel Islands with significant connections to UK
  • 5,000 km of rail in Western Australia
  • 600,000 sq. meters of exhibition space in Melbourne
  • Natural gas distribution in Tasmania
  • 135 bed forensic hospital, 85-bed prison hospital in Sydney
  • Portfolio of concession ports in European locations
This company is a spinoff of BAM (Brookfield Asset Management).  The CEO of BAM, Bruce Flatt, is given high regards for excelleng management and investment practice.  He is also known as the “Canadian Buffett”. The stock price right now is currently the same as it was 2 years ago.  It has already recovered from the 2009 market crash and there is plenty of room for it to move higher.

Technically the stock is in a great position.  The volume has been steady and it’s moving up slowly.  It took a dive a few days ago, but it has already recovered.  Long-term wise this is an easy play to make you money.  Just hold it, collect the dividend, and watch it move up.