This is a comment that I posted on a former subscribers blog. This individual is a wonderful person but has been doing a lot of the things I see new investors do and that subsequently leads to serious losses. Calling tops and bottoms WITHOUT proof from the charts is a clear sign of "ego trading." I think after doing this for 13 years and studying the past 120 years very thoroughly that I know this when I see it. The signs are that you fight for your beliefs even as the market rallies. This does not mean not liking the rally based on your views that the US economy is a NIGHTMARE of debt and lies. This is based on believing those views and then TAKING that trade. This means as the market rallies off the March lows you constantly go short, get stopped out, and go short again.

I am seeing a lot of people doing this lately and wanted to make mention of this as it is going to be financially very painful. Recently, since the rally off the March lows I was even very upset that I was not getting any 'perfect' charts or 'very beautiful-CANSLIM' charts. Still, did I go short the market? No. I kept getting more and more long. Why? How? Because the market kept going up saying that the market did not care what I thought. The charts kept breaking out and kept bouncing off key support/moving average areas. This is my signal to buy stocks.

Not too many people that I know are familiar with too many Chinese stocks that trade on the NYSE or Nasdaq. However, if you are not familiar with Kongzhong Corporation, the time to know what this company does is now.

Some might know this company as the former Communication Over the Air Inc. However, now it has a cleaner name. Kongzhong (KONG) Corp ADS was founded in 2002 and is a Beijing, China provider, through its subsidiaries, of wireless text/multimedia messaging, interactive voice response, ring tones, pictures, logos, karaoke, wallpaper, clocks, calendars, electronic books, and mobile phone games.

Founded in 1995, Vanceinfo Technologies, Inc ADS (VIT) is a Beijing, China based provider of outsourced software research and development, maintenance, testing, and IT services. VIT primarily serves corporations in technology, telecommunications, financial services, manufacturing, retail, and distribution industries in the United States, Europe, Japan, and China.

This company is not a stock that I hear too many traders or investors talking about around the internet. While many investors remain focused on the old leaders like Apple (AAPL) and RIMM, I like to look out for the exciting and innovative companies that have the potential to become the next AAPL or RIMM. VIT might or might not be one of those in the future, since no one can predict the future. However, history has proven that stocks with explosive earnings and sales growth go on to normally launch large price gains.

Everyone out there knows the company founded in 1989 that used to be named Network Associates that is now named McAfee Inc. (MFE) is a wonderful growth company. MFE is a Santa Clara, CA based company that provides security software to enterprises, governments, small and medium-sized businesses and individual consumers protecting them from known and unknown threats world-wide.

The company’s system security offerings include endpoint protection that encompasses security solutions for consumer and corporate computer systems, data protection solutions to safeguard vital info residing on various devices, and mobile security solutions to protect mobile operators and their users by safeguarding mobile terminals, applications, and content. The network security offerings are made up of firewalls, intrusion detection and prevention, web, email, and data loss protection security appliances.

China Medical Technologies (CMED) is a Beijing, China manufacturing medical device company, founded in 1999, that develops, manufactures, and commercializes chemiluminescence products, MAIA technology, and FISH technology for the monitoring and detection of diseases and disorders, including ultrasound-based cancer treatments. Just recently, on April 27 the company received approval in China for its Bladder Cancer FISH Probe.

Some of the diseases that this company can help fight include thyroid disorders, diabetes, hepatitis, SARS, Down syndrome, liver fibrosis, disorder related to reproduction and growth, bladder cancer, breast cancer, prediction and diagnoses of cervical and prostate cancer, diagnosis and prognosis of various leukemia and multiple myeloma, and various types of tumors. CMED can also detect Trisomy 21, Trisomy 18, Trisomy 13, Turner syndrome, and triploidy.

Background:

Aaron’s Inc. (RNT) is a NYSE-listed company, founded in 1955 in Atlanta, GA. Formerly known as Aaron Rents, the company operates 1,053 franchises and 504 consumer electronics, appliance, and residential/office furniture sales/lease stores in the U.S.A. and Canada.

Fuqi International Inc. (FUQI) is a Shenzhen, China based manufacturer that, through its subsidiaries, designs, develops, promotes, and sells of high quality gold, platinum, karat gold, diamond and palladium precious stone jewelry in China. These products include rings, bracelets, necklaces, earrings, pendants, gold coins and gold bars (very cool!) that are sold primarily to national and provincial distributors.

As you can see there is nothing complicated with FUQI’s business. It is a simple company to understand, and simple is beautiful, if you ask me. I have not checked yet, but I believe last year I took a look at FUQI as I mentioned it being a great stock to be long in a rising market. Sadly, or not, depending on who you are (wink, wink), the market rollover hard and had the worst decline in a short amount of time since 1929.

Anaren Inc. (ANEN) is an East Syracus, NY company founded in 1967 that designs, develops, and manufactures microwave and radio frequency components, assemblies, and subsystems that receive, process, and transmit radar for the wireless and satellite communications and defense markets.

The earnings-per-share for the company started to slide from late 2007 to the summer of 2008 but, as all true long term leaders do, this stock had a nice turnaround and sports some solid numbers on the very short term and overall long term. EPS has grown 0%, 5%, and 58% the past three quarters reversing four quarters of slowing growth. Sales came in stronger as the product continued to grab market share, even while earnings were slowing. Sales growth for the past eight quarters has been 23%, 6%, 7%, 0%, -5%, 19%, 28%, and 33%. It is clear that the last three quarters have seen the stock make big bullish changes.

Starent Networks Corp (STAR) is a Tewksbury, MA company that provides and manufactures infrastructure hardware and software equipment used by mobile operators to deliver multimedia services. Its top products include ST16 and ST40 hardware platforms, software that enables operators to provide in-line services, and the Starnet Web EMS that allows a mobile operator to monitor and operate the ST16 and ST40 through a graphical user interface. The products integrate multiple network functions and services needed for the delivery of multimedia services, such as video, internet access, VOiP, e-mail, mobile TV, photo sharing, and gaming. Operations are in the U.S.A., Canada, Japan, S. Korea, and internationally.

I know that some of the above might be a little too much technical jargon for you. If that is the case let me sum it up as best I can: the company makes cool products that allow cool things to be uploaded to your cell phone. I am sure everyone understands what I just posted. The important thing to remember, however, is that it doesn’t really matter what the product is. What matters is the question of “is it still growing at a rapid clip?” The question to that answer for STAR is yet. If seeing is believing take a look at the numbers below.

Medassets Inc. (MDAS) is a Alpharetta, Georgia provider of revenue cycle and spend management software for hospitals and other healthcare providers that is seeing strong demand for its product and for its common stock shares. Let’s look at the fundamentals of this company (the meat and bones) to see why this mutual fund demand is so strong.

The EPS of MDAS started to turn down in 2006 and that lasted until early 2008 when it finally started to turn around. For the past five quarters, EPS has been growing at 10%, 175%, 999%+, 999%+, and 0%. During the past eight quarters sales growth has been 13%, 32%, 46%, 39%, 42%, 54%, 55%, and 34%. While it is obvious that the EPS and sales are slowing in the most recent quarter, YOY EPS estimates for 2009 and 2010 still see an increase of 7% and 26% respectively.

Petmed Express Inc. (PETS) is a retail-mail order direct company that markets prescription/non-prescription medications and other health products for dogs, cats, and horses via catalog and internet. I know that the company doesn't sound "exciting" but exciting is not always the best investment in the stock market. Sometimes the good, old, and boring stocks can do just as well and actually do much better than most.

Whenever that same company is repurchasing $20 million worth of its common stock outstanding you can be sure that that boring old-company is nothing of the sort. Underneath the mundane name like PETS lies a powerful stock with extremely strong growth.

I enjoy finding growth stocks out there in the stock market universe. Sometimes when hunting for stocks you run into a stock that really kind of catches you off-guard with the great numbers. Well, today, that stock was A-Power Energy Generation (APWR). As I was scanning for new longs this Energy-other stock popped up and what I discovered about it was very pleasing.

A-Power Energy Generation is a Chinese provider of distributed power generation systems to factories and users in the People’s Republic of China. Business is good as just as recently as April 21st the company received two contracts from a Anhui Wenergy unit totaling $75.3 mil to build two micro-grid generation systems. Contracts like this explain why growth is so strong.

Synaptics (SYNA) is a Santa Clara, CA company that develops touchpad and customized user interface software for digital players, laptops, and mobile communication devices. Not only are they a provider of this technology, they are the leader in research and development on this technology with 13.9% of revenue going toward this area. This is why the potential for future gains with this technology player looks so strong.

Right now, SYNA is on a tear with EPS and sales growth. EPS has grown 140%, 140%, 38%, 21%, 29%, 39%, 110%, and 65% the past eight quarters. During that same time, sales growth has been 63%, 58%, 30%, 23%, 35%, 34%, 43%, and 28%. Growth this consistent is very hard to come by in this stock market environment and should not be taken lightly. Even 2009 earnings estimates call for a 64% increase.

Very few stocks out there can say that they are sporting growth in earnings, sales, and its stock price right now. However, Cogent (COGT) can do that, as this automated fingerprinting identification systems firm to Government, Law Enforcement, and other organizations not only has demand for its products but demand for its stock.

When it comes to the fundamentals, there is definitely a turnaround going on as the most recent EPS for the September 2008 quarter came in with a 180% increase, and on top of that, the sales growth for the same quarter turned around into a 56% increase.

This Mission Viejo, CA company operates 54 skilled nursing facilities and 7 assisted living facilities in California, Arizona, Texas, Utah, and Idaho. One thing is for sure about our population: it is aging and it will continue to age as we continue to find drugs that help us live longer and healthier lives. 

Proof that The Ensign Group (ENSG) is doing well early on is its recent growth the past three quarters in EPS, with 20%, 55%, and 19% growth. That, combined with revenue growth the past eight quarters of 20%, 15%, 18%, 17%, 13% 12%, 16%, and 15%, shows that this company is clicking on all cylinders. Future estimates for the company are great with YOY ESP gains of 35% and 20% expected in 2008 and 2009 respectively. 

This stock is an all-star and a major winner already, even after its heavy volume hit on Tuesday. Many people will think the gains have already been made but the smart investor knows that if this companies' products are for real, this would be just the start. Its products include in-home nursing services and personal custodial care for recuperating and disabled patients--a service that should only increase as the public ages and hurts itself.

Almost Family Inc. (AFAM) has been on a tear recently, making it too risky as a long up in the stratosphere. However, eventually this stock has to pull back and that is where I would be looking to get long. First, before we discuss when we should buy the stock, let’s go over why the stock should continue to be a great stock well into the future.

In a market where investing can be very dangerous, there are very few options to go to where one can be safe. Well, just like being in some horrible accident, in the stock market you can always find relief in medical stocks.

Obviously, some stand out compared to others. Right now, St Jude Medical Inc. (STJ) is standing out based on price action and strong fundamentals.

Terra Industries, Inc. (TRA) is a manufacturer of nitrogen products serving the agricultural and industrial markets in the US, United Kingdom, and Canada. Despite the long-term success of this stock, some are still shocked to find it's still cheap despite just hitting a new 52-week high. First let’s go over the fundamentals of a company that is repurchasing an additional 10 million shares of its outstanding common stock.

First off, year over year EPS has grown 999%, 650%, 500%, 185% and 169% the past five quarters respectively, making it one of the fastest growing companies out there. To go along with this incredible EPS growth, sales growth has been fantastic with sales growth of 26%, 32%, 28%, 27%, 15% and 22% the past six quarters. These numbers are fantastic and are the reason mutual funds have embraced this company.

There are not a lot of stocks that are making money for individual investors right now. But there is one stock that is under heavy accumulation that has been showing some extremely strong growth in many key fundamental matrix.

Overhill Farms (OFI) is a manufacturer of frozen food products for branded retail, private label, food services, and airline customers. It has even recently declined an offer to be acquired by GESD Capital Partners, which tells me that this company believes it is the growth machine in this industry.

American Public Education Inc. (APEI) offers online postsecondary education to 25,000 students in 50 states and 130 countries for the military and public sector. This company has the best of both worlds as it enrolls students from both the armed forces which ensures the company profits even when the civilian market slows down. 

For now, however, there is nothing slowing down for APEI as the growth engines are hitting on all cylinders. Even though the stock is new to the Nasdaq, the company has been around since 2002 and earnings have recently been growing at a phenomenal rate. So much so that this online education company is #1 in its commercial services-schools group based on earnings growth.