We’re more than half way through 2010 and this year has seen a significant pickup in the number of quality IPO’s, so I thought I’d rank the top 10 up to this point in the year based on fundamentals.  Part I will highlight the first five, part II the next five and I’ll follow that up with a report taking a look at some of the most promising IPO’s that may begin trading in the last quarter.

Camelot Info Systems (CIS): This is the highest rated IPO that I currently track with a fundamental score of 29/30.  The company provides enterprise application services and financial industry information technology (IT) services in China. It’s the largest provider of enterprise resource planning in China and names HP, Accenture and IBM as customers.

Camelot has posted significant growth every year it’s been in business and that growth continues today despite a shaky world economy.  In 2009, they experienced EPS growth of 60% and is posting record growth again this year with an estimated 113% growth for 2010.  Revenue growth has accelerated in each of the past four quarters.

Technically, the stock remains extremely bullish, but very overbought in the shorter term.  After a month long flat base formation, the stock exploded higher Aug 18th and hasn’t looked back.  It’s up nearly 50% in under two weeks and buy volume continues to come in above average.  It’s best to look for a retracement of about 50% from the breakout point above $11, so a return to the $12 – 13 area would provide an ideal entry point.

====> Click Here For Your FREE Daily Camelot Technical Analysis

Read Entire Post “Top IPO’s Of 2010 (Part I) – CIS, ONE, FNGN, GDOT, SPSC” Here

Everybody wants to know where gold is headed and it remains one of the most talked about trades.  More recently I’ve begun to hear family and friends discuss purchasing gold stocks and the actual metal itself.  That usually doesn’t bode well for any trade especially after the run gold has had.  So where might it be headed in the coming weeks and months?

As always, I turn to the charts for some clues and Adam from Market Club gives us a video analysis as well.  While he uses some different indicators, we both arrive at about the same conclusion.. that gold is still undergoing a correction and the best strategy is to step aside until a new buy signal is provided. 

Below is a chart of the SPDR Gold Trust (GLD) which seeks to track the price of gold.  You’ll notice the parabolic move at the end of last, followed by a 20% correction and return to test the all time highs.  While gold held up at those lofty levels for nearly two months, it has since taken out support at the 2009 highs and is in the process of a correction. 

Read Entire Post “Gold Correction.. How Far? (GLD)” Here

About six weeks ago I mentioned that you might want to look for a BIG head and shoulders formation in indices just days after the infamous “flash crash” day.  About one month later, the right neck line was complete after another test of the lows of the correction, kicking off a weak rally into resistance of the 50 day moving average and around the left shoulder.  In the case of the Nasdaq which you see below, that was the area around 2326 – 2350.  The Naz would ultimately fail around the 2340 level following a significant reversal day on June 21st.  It should be noted that the Dow did fail at exactly the 50 day moving average on June 21st.  That was signal to begin locking in profits and shorting the market if you’re a trader or offering another chance to raise significant cash if you’re more of an investor.  I still don’t think it’s too late to do so.

Read Entire Post “Nasdaq Confirms Head & Shoulders Top” Here

The analogy I had been using over the past few months to describe the action in the market to my members is that of a majestic skyscraper, each story beautifully built, higher and higher to the heavens. Just one problem.. they skimped on the foundation.  So, as the glorious skyscraper neared the heavens, the foundation began to crack, piece by piece by piece with each passing day.   As dignitaries and VIPs arrived to celebrate the completion of this majestic masterpiece with a ribbon cutting in Ben’s Liquidity Lounge, it tilted ever so slightly.  It was barely noticeable, but those that did, chalked it up to thin air and one too many trips to the punch bowl.

The charts never lie.  As the rally continued to soar to epic heights, the charts began to reveal the warning signs well ahead of the crash.  Granted, this has been a historic, Fed fueled, artificial rally where minor topping patterns failed again and again as the market pushed higher and higher with considerably less conviction.  That began to change in January, when institutions began to unload positions which was revealed in the heavy volume on the sell side.  I have to admit, I thought there was a very good chance of topping in February following the January plunge, but was forced to abandon the plan to get aggressively short on March 4th.

I sent the following note to members:

Read Entire Post “Anatomy Of A Market Meltdown; Potential Head & Shoulders Pattern” Here

What a day today.  It began like so many in the past few months with low volatility and volume.  Another lazy Friday.  Then the big sell spike came just after 10:30AM EST.  Moments later the reason for the sell spike hit CNBC and an ordinary Friday turned into Freaky Friday.  The SEC was filing a civil fraud suit against Goldman Sachs (GS). Rarely a dull moment in the stock market eh?

The Goldman Sachs (GS) fraud charge by the SEC is big news and the blogosphere is buzzing with opinion as the facts continue to come out.  This won’t go away anytime soon and I’d imagine the SEC is out to prove it’s new and improved and ahem… actually doing its job.  Of course this may lead to overreactions and firms and individuals will be made examples of to prove they mean business.  Going after Goldman certainly makes a statement.

Read Entire Post “Buried In Goldman Sachs (GS) Fraud Buzz – SEC’s Failure On Stanford Ponzi” Here

With the the likely appointment of Janet Yellen to Vice Chairwoman of the Fed, don’t expect the easy money policy to grind to a halt.  In fact, Janet “easy money” Yellen is more dovish than Kohn and another cog in the easy money wheel.  She supports extremely low rates to keep this economy artificially inflating.  In February, she commented on the economy saying  that while the economic tide appears to have turned and recovery is well under way, “the economy faces a long period of subpar growth, high unemployment and downward inflation pressure, and so it will continue to need “extraordinarily low interest rates.”  Let the good times roll.

The news has certainly helped pressure the dollar in the last couple days, but the dollar remains bullish for now and just consolidating recent gains.

The internet changing news from Cisco (CSCO) the tech world has been anxiously awaiting was unveiled today.  Cisco’s CRS-3 router has been heralded by CEO John Chambers as a system that can download the Library of Congress in a second, stream every movie made in four minutes and allow simultaneous video calls by every single person in China.  It will be available at a cost of $90K in the 3rd quarter of this year.  Mighty impressive, but let’s see what the tech experts have to say.  I thought I’d do a run down of some of the reactions to the big announcement today.

From BNET

BNET doesn’t see any immediate gratification unless others get on board  and says, “Chambers’ promise depends on cable operators and their telecom rivals abandoning greedy habits like doling out bandwidth in metered increments and randomly hiking service rates. So, this could take a while.”

From ChannelWeb

ChannelWeb reports that Cisco’s statement of 12x the capacity is aimed at competitor Juniper which has issued a statement saying the claims are misleading: “The claim of 12 times the traffic capacity of the nearest competing system is based on a theoretical maximum of 72 interconnected CRS-3 chassis in order to achieve the 322Tbps total capacity — this will likely never be deployed in practice due to space, power, and manageability realities.”

From Yankee Group

The Yankee Group notes that the CRS-3 is IPv6 ready, designed to handle the explosion of mobile devices, “cloud ready” and 10x the speed of the closest competitive product but doesn’t quite live up to the big hype.

Quote: “So, did the Cisco CRS-3 live up to the immense hype that preceded it?  No, I don’t think so. But they did set a very high bar.  It’s a good solid announcement that will allow network operators to put a foundation in place to drive differentiated multimedia and mobile services.”

In my opinion, the technology is great and a big step towards handling the explosion of data, but let’s put it in perspective.  As a UBS analyst pointed out today, the high end router market represents less than 5% of Cisco revenues.  The new router may be a game changer for the internet in the years to come, but it’s probably not a game changer for the stock price.

Shares of Cisco were flat today.  Get your CSCO trend analysis here.

A brief reprieve from regular programming to bring you this entertaining story out of fantasy land.. I mean Hollywood.   Lindsay Lohan, clearly confused and out of touch with reality OR “just following the advice of a greedy lawyer”, is actually filing a lawsuit against Etrade (ETFC) because she feels that the Etrade Milkaholic ad is referencing her when they use the name Lindsay.  No joke.

The ad debuted during the Superbowl and features the baby boy apologizing to his girlfirend for not calling her.   She accuses him of having that “milkaholic Lindsay” over.  The lawsuit claims that many celebrities are known by their first name (ie Madonna, Cher) and that Etrade is knowingly trying to profit from the name Lindsay which everyone assumes is Lindsay Lohan. 

She’s suing for $100 million and removal of the ad.  The Grey Group, which produced the ad, is saying it’s just a popular name and is the name of someone on their team.  As  for Etrade, they are basking in the glow of free media attention which this is sure to generate.  Well done.

::: >>> Click Here For Your FREE Etrade Analysis

The biggest IPO story since Google will continue to leave investors wondering.  While the Facebook IPO will happen, there are still no imminent plans with founder Zuckerberg saying “we’re definitely in no rush”, according to a WSJ article today.  He makes a good point in that the company is in the envious position of not requiring massive capital to build factories or even market the product, so the same motivations for going public quickly aren’t there.  Adding to the delay may be the fact that Zuckerberg, as the WSJ points out, is a micro manager who may be having a tough time relinquishing some control of the company of which he owns 25% of and controls voting power.

However, an IPO will take place as investors and shareholders have been promised and the company has been taking measures to prepare for it.  In 2008, the executive team was expanded highlighted by the hiring of Google exec Sheryl Sandberg and adding Netscape founder Marc Andreessen to the board.  Of course, the rumors, speculation and predictions are flying and many think the company will go public next year with a market cap of nearly $40 billion based on the current revenue number and applying a multiple similar to that of Google.  The company apparently was cash flow positive last year and believes revenue could reach $2 billion this year.

In the meantime, Zuckerberg found a way to ease the growing impatience of its employees for a big pay day ahead of an IPO.  Last year, $100 million in shares were sold to Russian firm Digital Sky Technology which also invested another $200 million giving them a 3.5% stake in the company without increasing the shareholder base.  Just an appetizer of what will likely be a rain of cash for Facebook employees.