Daily Stock Pick for 3/12: POSCO

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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.

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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
POSCO	PKX	Steel Producers	9.5	35.0%	$117.89
Company Profile: POSCO engages in the manufacture and sale of various steel products primarily in South Korea. It offers hot rolled products that are used in the manufacture of structural steel used in the construction of buildings, industrial pipes and tanks, and automobile chassis; and plates, which are used in shipbuilding, structural steelwork, offshore oil and gas production, power generation, and mining, as well as in the manufacture of earth-moving and mechanical handling equipment, boiler and pressure vessels, and other industrial machinery. The company also offers wire rods for the manufacturers of wire, nails, bolts, nuts, and welding rods, as well as for the manufacture of coil springs, tension bars, and tire cords in the automobile industry; cold rolled coils and further refined galvanized cold rolled products, which are used in the automobile industry to produce car body panels, as well as in household goods, electrical appliances, engineering, and metal goods industries; silicon steel sheets that are used in the manufacture of power transformers and generators, and rotating machines; and stainless steel products, which are used in the chemical, paper mills, aviation, automobile, construction, and food processing industries, as well as used in the manufacture of household goods. In addition, it produces semi-finished products, such as pig iron, billets, blooms, and slabs. POSCO exports its products primarily to the People's Republic of China, Asia, Japan, North America, Europe, and internationally. The company was founded in 1968 and is based in Seoul, South Korea. Source: Yahoo Finance
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.

 

Chart Watch

  POSCO - Last 3 Months -

  POSCO - Last 12 Months

  POSCO - Last 5 Years

 

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