Daily Stock Pick: Seagate Technology - 2/8/2010

Every trading day, we search our database for a brand new TopStock pick that, in our humble opinion, is in solid technical condition and perhaps, ready to move up.

Our base level investment philosophy is based on the concept of "own the best and ignore the rest." Thus, we focus our attention solely on the TopStocks of the market -- the top ranked stocks in the strongest industry groups.

How Do We Find the"TopStocks?"

A question we are constantly asked is: How do we find these TopStocks? In short, we follow a disciplined three-step process.

Step 1: Identity the Top Sectors and Industry Groups
We first determine the market’s leadership by identifying the top performing sectors and industry groups. From 10 sectors and more than 100 Industry Groups, our proprietary ranking systems (which has been designed in conjunction with the nation's leading independent research firm) identifies the top 5 sectors and the top 20 groups based on momentum, industry strength, and indicators that are specific to the industry being ranked.

Step 2: Isolate the Highest Rated Companies
From more than 2400 stocks, the system identifies the top 5% in terms of earnings strength, earnings momentum, company performance, and relative strength.

Step 3: Select the Strongest Stocks in the Top Industry Groups
We then merge the two rankings and select the top ranked companies that are in the top Industry Groups. This keeps us focused on the best performing stocks in the leading sectors of the market.

And then every weekend, we rerun the TopStock ratings and start all over again!

The TopStock Pick of the Day

The TopStock Pick listed below has met all of our fundamental criteria and currently displays a solid technical "set up" for a buy. The stocks highlighted in our daily Stock Pick reports are definitely on our radar, and may even be in some of our portfolios (see disclosure for details).

Stock	Symbol	Industry	TopStock Rating	Annualized Profit Projection	S.T. Stop Loss
Seagate Technology	STX	Computer Storage & Peripherals	9.3	83.9%	$17.36
Company Profile: Seagate Technology (Seagate) is engaged in the design, manufacture and marketing of hard disc drives. Hard disc drives, which are referred to as disc drives or hard drives, are used as the primary medium for storing electronic information in systems ranging from desktop and notebook computers, and consumer electronics devices to data centers delivering information over corporate networks and the Internet. It produces a range of disc drive products addressing enterprise applications, where its products are used in enterprise servers, mainframes and workstations; desktop applications, where its products are used in desktop computers; mobile computing applications, where its products are used in notebook computers, and consumer electronics applications, where its products are used in a variety of devices, such as digital video recorders and other consumer electronic devices that require storage. It also sells its branded storage solutions under both the Seagate and Maxtor brands.
Chart Watch: Intraday Chart Watch: Last 3 Months Chart Watch: Last 12 Months
Stock Rating: The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest. Annualized Profit Projections: The projected annualized return is based on the historical relationship of the stock's TSP's technical model Disclosure: At the time of publication the editor and affiliated companies own the following positions: None Note: Positions may be bought or sold while this publication is in circulation without notice.

 

What To Do With The Data?

Would like to know when any of the TopStock Picks are added to the Top 5 Portfolio or the HedgePro Portfolio (this one "goes both ways" with long and short positions)?

Would like to know EXACTLY when our TopStock Trading team makes a move in the TSP Active Trader (the "best of TSP" portfolio), the TSP MacroTrade (what's the next big trade?), or TSP Insider Portfolios (we own what the insiders are buying)?

If you answered yes to any of the above questions, be sure to treat yourself to a FREE TRIAL of any of our services. Even Free Trial Members receive ALERTS! telling you exactly what we are going to do BEFORE we make actually make a move.

Free-trial members receive COMPLETE ACCESS to every trade we make. Just click on the FREE TRIAL button at the top of the page and then select one of our TopStock services. Give us a shot, I think you'll like our style.

The analysis and information in this report and on our website is for informational purposes only. No part of the material