Daily TopStock Pick: 99 Cents Only Stores - 8/17/2010

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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.

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
99 Cents Only Stores	NDN	Retail - General Merchandise	8.0	41.5%	$15.86
Company Profile: 99 Cents Only Stores is a retailer of primarily consumable general merchandise. As of March 27, 2010, the Company operated 275 retail stores with 206 in California, 32 in Texas, 25 in Arizona, and 12 in Nevada. The Company is also a wholesale distributor of various consumer products. The Company’s stores offer a assortment of regularly available consumer goods, as well as a variety of first-quality closeout merchandise. These stores averaged approximately 21,300 gross square feet. During the fiscal year ended March 27, 2010 (fiscal 2010), the Company opened nine new stores. Of these newly opened stores, eight stores are located in California, and one Texas store. The Company closed 12 stores in Texas and one store in California during fiscal 2010. It also sells merchandise through its Bargain Wholesale division at prices generally below normal wholesale levels to retailers, distributors and exporters. Bargain Wholesale represented 3 % of the Company’s total sales in fiscal 2010.
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.   99 Cents Only Stores - Last 3 Months -   99 Cents Only Stores - Last 12 Months   99 Cents Only Stores - Last 5 Years

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