We posted Part 3 of our "Building A DIY Dividend Portfolio" series this morning, which highlighted our top-ranked dividend stocks in the Healthcare sector (see summary table below).

As we highlighted in Part 3, we believe that patiently waiting for a low-risk entry point for a given stock will drastically improve your long-term investment results. Just because a stock has a high Parsimony composite rating, it doesn't necessarily mean that you should run out and purchase it that day. We scan the charts of our top-rated stocks daily looking for strong levels of support and resistance, which ultimately helps us determine a target "Buy Zone" for each stock.

Tactical Strategy for the DIY Dividend Portfolio

As a follow up to Part 3 (Part 3b, if you will), below are our target "Buy Zones" for each of these top-rated Healthcare stocks. For the most part, Healthcare stocks got hit pretty hard

<< Return to Part 1

This is a continuation of my previous article on biotechnology stocks to watch ahead of ASCO 2012. In this article, I cover the second set of stocks that are presenting at ASCO 2012. Biotech stocks are high risk/reward stocks, and therefore considerable analysis is required before trading. Use this list as a potential starting point for your analysis.

1. ImmunoGen (IMGN): ImmunoGen engages in the research and development of targeted therapeutics for the treatment of cancer using cancer biology, monoclonal antibodies, and highly potent cell-killing agents. The company develops its products using its Targeted Antibody Payload (TAP) technology. ImmunoGen's collaborative partners include Amgen, Bayer HealthCare, Biotest, Lilly, Novartis, Roche, and Sanofi. The most advanced compound using ImmunoGen's TAP technology, trastuzumab emtansine (T-DM1), is in Phase III testing through the Company's collaboration with Genentech, a member of the Roche Group.

On May 16, 2012, ImmunoGen announced

The pharmaceuticals industry is just like the food and beverage industry in terms of sensitivity. This is because it produces products for human consumption, which makes it the main source of income. Abbott Laboratories (ABT) is one major beneficiary of this kind of income and so is a victim of the dangers associated with the business. In November 2011, a law suit was filed against the company with regard to the Depakote drug, which is viewed to have caused various side effects. In February, the drug was in the mix again as yet a new law suit was filed with relation to its effects on human consumption. The pharmaceuticals industry is quite a lucrative one in the U.S as you will learn through several press releases from various news media. Some claim that sales are recorded to the tune of $300 billion annually, a figure that should entice investors to

Most people would not buy a generic brand painkiller over a trusted brand like Advil, typically because of the idea that generic brands do not work as well as name brands. It is this idea that leads me to believe that Pfizer (NYSE:PFE) may be safe from the "patent cliff" that so many pharmaceutical companies are currently dealing with. Pfizer is also making enormous moves toward directions that will benefit the company and its stock in the future.

The "patent cliff" is a term used to describe the current phenomenon many pharmaceutical companies are dealing with, expired drug patents. These patents protected the companies' major branded drugs from being replicated by other companies and sold in generic versions for cheaper. With the patents expiring, generic brand drugs are being made and sold, hurting sales of the original name-brand drugs. Watson Pharmaceuticals (NYSE:WPI) released its long-awaited generic version of Pfizer's top-selling

We Are DIY Investors...Just Like You

By way of background, Parsimony Investment Research is a group of Do-It-Yourself investors that whole-heartedly believe that individuals can and should educate themselves and manage their own money. That is, of course, if you are willing to dedicate the time and patience necessary to do so. In today's low interest rate environment, paying even modest fees to a financial advisor can significantly eat into your profits. At the end of the day, it's YOUR money and you alone are the best shepherd of your capital.

We started Parsimony to share our experiences, strategies and research with fellow DIY investors. At the end of the day, we are all in the same boat…so let's set sail and preserve and grow our wealth together!

Building A DIY Dividend Portfolio

Over the course of the next few weeks, we are going to highlight our top-ranked dividend stocks

New York-based Orbimed Advisors is the world's largest healthcare investment firm, with over $5 billion in assets under management, including $3.37 billion in 13-F assets per its most recent Q1 2012 filing, up from $3.05 billion in the prior quarter

Johnson & Johnson (JNJ), one of the world's leaders in the pharmaceutical, medical devices, and general consumer products industries, is a supreme opportunity for long-term value investors. Trading near $63 today, Johnson & Johnson has a very healthy dividend yield of over 3% - one that has only increased over the last decade.

Johnson & Johnson, with a diversified portfolio of consumer products (23% of 2011 revenue), drugs (37% of 2011 revenue), and devices (40% of 2011 revenue), stands in a powerful market position. Over 250 companies operate under its supervision, and the brand name is one of the most recognizable around the globe. Its pharmaceutical side will benefit from the release of Xarelto, Incivo, Zytiga, and Edurant drugs over the next quarters. Revenue and expense synergies from acquisitions should manifest themselves in upcoming earnings announcements, and stock buybacks on the part of management will lead to great accretive effects

The pharmaceuticals industry is a defense play, just like the food and beverages industry, in terms of sensitivity and market beta. Abbott Laboratories (ABT) is uniquely situated in the industry because of its growth prospects and because it still has a reduced valuation due to lawsuit-related uncertainty.

The month of May brought the end to a lawsuit filed against the company for marketing Depakote, a drug for schizophrenia, for off-label use. The company actually pleaded guilty to a criminal misdemeanor for its actions. The total settlement amount is $1.6 billion. A multi-year cloud that hung over Abbott has been lifted. Although the company will be under government compliance review, management can now refocus on growth initiatives and overall financial performance.

Chief among Abbott's positives is its favorable dividend policy. Abbott's forward annual dividend yield is at 3.40% with a forward annual dividend rate of $2.04 per share. The dividend yield

Johnson & Johnson (JNJ) is a sound defensive investment for any conservative investors interested in the long term. Johnson & Johnson has steadily increased its stock price and earnings despite massive recalls and litigation issues. Johnson & Johnson continues to be able to raise dividends and maintain adequate numbers in comparison with the industry despite the drawbacks over the past few years. The majority of its troubles have passed and a revamped business model with new leadership at CEO will enable Johnson & Johnson to recapture its leadership position among competitors in the industry. International growth along with effective acquisitions and improvements in the pharmaceutical center are valid reasons to invest with Johnson & Johnson now before the stock price begins to rise toward the end of 2012.

Investors should be reassured that Johnson & Johnson has shown the stability it has through recalls and poor acquisitions that would cripple

Med-tech isn't much different than any other sector of the market; when the growth goes, so do the investors. While the widespread slowdowns in multiple key businesses have definitely dented Medtronic's (MDT) recent growth, it's not as though the stock may seem to be an obvious bargain at about three times trailing sales and more than eight times trailing EBITDA.

That said, Medtronic seems to be seeing some signs of life in major units like cardiac rhythm management and cardiology, and the success of recent new product introduction bodes well for some high-profile launches in the coming years. As a balanced growth/value/income play on the healthcare space, Medtronic is looking more interesting as a stock these days.

Closing The Fiscal Year In Line

Medtronic basically did as expected for the fiscal fourth quarter, as better revenue and gross margin were balanced by higher operating expenses.

Revenue rose 4% on a

Stamford, CT-based leading multi-strategy hedge fund SAC Capital, founded and led by legendary manager Steven Cohen, filed its latest 13-F for Q1 2012 indicating that it ended the quarter with $22.24 billion in 13-F assets, up from the $15.8 billion in 13-F assets in its prior Q4 filing. Mr. Cohen is among the most high-profile hedge fund managers, and has been dubbed as 'The Hedge Fund King' in a 2006 Wall Street Journal article and was ranked 94th on Time Magazine's annual list of the most influential people. His net worth is estimated by Forbes at $8.3 billion, ranking him as the 35th richest person in the U.S. He is also among the highest compensated hedge fund managers, with a $1 billion paycheck in 2005 and again in 2010.

His Hedge Fund, SAC Capital, is among the giants on Wall Street both in terms of assets under management as well

Johnson & Johnson (JNJ) is an excellent company that you should be pleased to own. It has good fundamentals, but recently the price has begun to pull back. Valuations are very consistent and positive in the coming year or two.

JNJ continues to beat analyst's earnings estimates, but not by much. This time it was an increase over last year's second quarter of only 1.8%. Some analysts increased their earnings outlook, but I did not. Revenue and margins decreased for the year by 0.2% to over $16.1 billion.

Johnson & Johnson has one of the finest business models on the Street. It is not cyclical due to a diverse line of products and maintains a strong financial position.

As the market cycles an increase or decrease in price a company is selling for is directly related to the company's earnings growth. Raw earnings and other financial data are provided exclusively

After a punishing start to May, the markets look to be turning around … at least for yesterday and today. Is the pain over? Is the market a buy, sell or hold?

Before I get to the actual stock-specific recommendations, we need to discuss where the market is at. Portfolio Café founder, Tim Fortier, recommended a 30% NASDAQ hedge to all his clients in addition to a VIX volatility hedge a few weeks ago. That was good advice. But is it time to drop the hedge and buy up cheap stocks?

My opinion is no. A few short days of relief buying does not warrant a change of broader sentiment. If this rally shot up another 2.5% or more followed by a shallow test on support - we may have a case for removing hedges. But a couple days of up-action often traps bulls that only exacerbates the next wave

Do you like to invest with a stock's momentum trends? For ideas on how to start your own momentum search, we ran a screen.

We began by screening the large-cap sector, with market caps above $10 billion, for those with strong upward momentum, trading within 5% of their 52-week highs.

Then to analyze these companies' profitability, we ran DuPont analysis on the names. DuPont analyzes profitability by breaking up return on equity (net income/equity) into three components:

ROE

= (Net Profit/Equity)

= (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)

= (Net Profit margin)*(Asset turnover)*(Leverage ratio)

Because increases in net margin and asset turnover are considered positive changes, DuPont focuses on companies with these positive characteristics: Increasing ROE along with,

•Decreasing leverage, (i.e. decreasing Asset/Equity ratio)

•Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio)

Those companies that pass DuPont are seeing positive trends in the sources

The following is a review of three biotech stocks with potential for growth. Amarin (AMRN), Osiris (OSIR and Abbott (ABT) are three companies with either recent breakthroughs, a catalyst, or a possible place to ride out a coming storm.

Amarin ( AMRN )

On Tuesday May 8th Amarin released its first quarter earnings, along with a Press Release. Amarin's focus is on treating cardiovascular disease. Their drug, AMR101, lowers triglyceride levels, without significantly increasing low-density lipoprotein (LDL) levels. Amarin

By Doug Ehrman

Medtronic Inc. (MDT) is scheduled to release earnings on May 22, 2012, and ahead of that announcement, the company is looking strong. Given the relative position of the company amongst its peers, there are viable alternatives for every level of risk tolerance, regardless of whether one is reading this before or after earnings have been released - although maximum flexibility is available when one makes a plan early in the process. Medtronic has a strong history and stacks up well against its peers; it should be considered as a core portfolio holding.

Earnings Expectations And History

The average of analyst estimates for Medtronic is 98 cents per share. This would represent an increase of 8.9% relative to the same quarter a year earlier. This projection contains a rise in profits to $3.45, representing an increase of 2.4%. It also includes an expected decline of 1.6% in revenues,

Sanofi (SNY) has not reported a lot of good news lately. The company plans to shut down a plant in Newcastle, and a drug that it has been working on has not received the approval for which the company had hoped.

The company's factory in Tyneside, will not be saved and the 450 employees that work there will have to face losing their jobs. The company was unable to merge operations with another site or increase the demand for production and consequently it has no choice but to close the factory. These were the proposals that employees were hoping would be backed by the company so that their jobs would not be lost. The only thing that the factory workers can hope for now is that their union leaders will be able to secure the best possible severance package for them from the company. The blow will be felt across

As the European debt crisis heats up, and China tries to accelerate while transitioning to more domestic consumption, and as the US faces its fiscal cliff, and 50% of the world's GDP approaches scheduled political leadership challenges, it would be nice to be in or have a list of "weatherproof" companies to withstand an economic "storm".

A weatherproof company might be seen as one with a global footprint that has had less severe price declines in panic periods, that is not overlevered, that has high liquidity, and enough profit margin to absorb some revenue hit, positive cash flow, sales growth, above average dividend yield and dividend growth. And lastly, it would be nice if the analyst community thought the companies that had those attributes were also good choices.

Setting out on our search, we began by exploring the ValueLine 1700 and required that companies have these characteristics (the cumulative number

Medgenics (MDGN) scores again. After a season of good news, the company recently told investors that in record time, the FDA approved its filing to start clinical trials using its Biopump platform technology to treat anemia in kidney dialysis patients.

As we've said in the past, EPODURE, one of MDGN's three proprietary Biopumps in development, looks to eliminate frequent, costly and inconvenient injections of erythropoietin (EPO). Amgen Inc. (AMGN) has owned this space for years and medicine is ready for a change.

Our FDA, known for its sluggishness and bad management, moved quickly to allow Medgenics to commence Phase IIb trials in the US, giving us their endorsement of a valuable technology that even the agency can't ignore. EPODURE works, and the FDA recognizes that our overburdened healthcare system can only benefit from the economics that Medgenics offers.

The study will be a multi-centered, randomized trial for further evaluating safety

At Parsimony Investment Research, we use a combination of fundamental and technical analysis to determine which stocks to buy and when to buy them. For dividend stocks in particular, we have a proprietary rating system that ranks over 700 U.S. dividend stocks on a weekly basis. We scan the charts of our top-rated stocks daily looking for strong levels of support and resistance, which ultimately helps us determine a target "Buy Zone" for each stock. We believe that patiently waiting for a low-risk entry point for a given stock will drastically improve your investment results.

That said, below is a list of our top-rated stocks that are currently in or very close to our target "Buy Zone". Note that our composite rating ranges from 0 (lowest) to 99 (highest).

All of the stocks on the list above have a current dividend yield of at least 2.5% and a 5-year beta