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Today's HI-LO List - Screened by volume and market cap with comments by yours truely

|Includes:AAL, ACAT, ALK, Brunswick Corporation (BC), CEA, CPA, ELY, SMCI, STI, ZNH
HILO List
 
This screen attempts to look at new highs and lows accompanied by significant volume increase, as it’s our belief that price and volume must work in concert to find the best buy and sell candidates.
 
We collect facts and news on new highs in the Russell 1000 Index where volume is more than 40% over the 30 day average volume, the stock price is over $10/share and the company has a market capitalization of over $250mm. We exclude ETF’s. For the sake of time, sanity and manageability, we reserve the right to limit the list to 10-15 names; therefore we could exclude the lower market capitalization companies.
 
This list is NOT a “buy” or “sell” recommendation.
 
We think it’s a good place to start doing some research and we often find our best longs and shorts from this screen.
 
Please feel free to contact me with any feedback.

New Highs: 111 total new highs, 10 meet the screen criterion

Stock Ticker
Recent Price
Market
Cap.
Notes:
 
BC
Brunswick – After restructuring, boats and engines account for about 80% of sales, the balance sporting goods and bowling. The company has presented at 3 conferences this month following the Miami Boat show in February. Earnings are estimated to be losses ($2/share in 2010) rebounding to break even in 2011. 14% of the float is short. Net debt totals $324mm against EBITDA estimates of $56mm this year and $220mm next.
 
 
 
ACAT
Arctic Cat Inc – Best known for its snowmobiles, ATV’s now account for almost ½ its sales. Parts and clothing account for 20%. The balance sheet has about $2.50/share in net cash and earnings have held up ok, as the Dec. Q earned 14c versus a loss in 2008 despite a 25% decline in sales. Estimates call for a modest 3% gain in sales for FY2011.
 
 
ELY
Callaway Golf Inc. – A familiar name too many, the company gets about ½ is sales from the US and about 20% each from Drivers, Irons and Golf Balls. After several years of flattish sales, 2009 saw a 15% decline and losses. Estimates are for mid single digit sales growth leveraging into almost 60c/share by 2011. The balance sheet is still solid with over $1/share in cash.
 
 
ZNH
China Southern Airline – After raising $1.6b in Hong Kong and a Morgan Stanley upgrade, the shares have been on a tear from the high teens. Debt at about $6b looks formidable, but the company should be profitable this year and could generate $2b in ebitda in 2012E, assuming 15-20% revenue growth.
 
 
 
 
 
 
CEA
China Eastern Airline – They announced that they also need to raise money and have sold a joint venture. Industry analysts expect China’s passenger traffic to increase 20% this year
 
 
 
 
 
 
ALK
Alaska Air – not to be out done, US airlines are showing some impressive operating metrics. ALK said February revenue was up 16% compared with January -3%, load factors in February were 80% and could climb to 87% in March. Thus the street’s $4.20/share eps estimates seem conservative, given the projected loss in the March quarter.
 
 
AMR
American Airlines – Some small announcements today don’t seem to be moving the stock. Rather the global airline group seems strong.
 
 
CPA
Copa Holdings – Panamanian based airline announced February Traffic up 12%, capacity up 3% on March 4th. Their balance sheet is less levered, with net debt = 1x projected EBITDA and the $5.60/share estimate for 2010 has been increasing in the past 4 weeks.
 
 
SMCI
Super Micro Computer – This San Jose, CA based company manufactures servers. Many products claim to offer better performance-per-dollar spent and better performance per –square-foot of computer space. The stock is extended from its 50 and 200 day moving averages. However, the recent run might be justified, as SMCI reported a 42% increase in sales in the December quarter and is trading at 16x 2011 EPS estimates with $2/share in net cash on the balance sheet.
 
 
STI
SunTrust Banks Inc. – This Atlanta GA bank is best known for its 56mm shares of Coca-Cola Inc. (NYSE:KO), yet it trades just over its $19/share tangible book and below its $35/share stated book value. The company has presented at two conferences over the past few days.
 
 
 
 
 
 
Super Micro Computer – This San Jose, CA based company manufactures servers. Many products claim to offer better performance-per-dollar spent and better performance per –square-foot of space.
 
 
 
 
 
Click to enlarge

New Lows: 1 total new low, 0 meet the screen criterion


Disclosure: NO POSITIONS
Stocks: BC, ACAT, ELY, ZNH, CEA, ALK, AAL, CPA, SMCI, STI