Stock Talk Mid-Day May 15, 2007

MB

Stock that I like that will go up:

1. Agilent Technologies (A) - 37.53

I like this stock because they just reported their 1Q earnings being above their expectations. They also stated that they are expecting quite the run for their 2Q and 3Q. Jimmy Cramer is calling this one of those stocks to own for quite a while. Many Mutual Funds are raising the price tag on this stock to 38/39 after yesterday's conference call. As of now Agilent Tech is above their 52 week high, and I can only see this going higher in the future.

Stock that I like that I think will go up in the long run:

1. Microsoft (MSFT) - 31.00

I think this stock will go up in the long run to possibly 35-40 over the summer into the holiday months. I say this because of one effect, the effect I will call "The Halo Effect". Starting tomorrow the Halo 3 Beta begins for anyone who bought the game Crackdown, those who don't have this game or console may go out and buy it to get into one of the biggest events in video game history. Also Microsoft has created Games For Vista which is a line of games made just for the Vista Operating System. One of these games coming out is called Shadowrun, it is a First Person shooter where players can play with those on the Xbox 360 and PC. Other potential console sellers for Microsoft are Forza 2, Mass Effect, and Halo 3. Out of all of them Halo 3 will move Microsoft the most just like what Halo 1 did for the original Xbox. Look for this stock to raise around the late summer months into the holiday season.

Stock that I like that is on the wire

1. Apple (AAPL) - 109.76

While Apple is doing very well, the balance of this stock falls into the hands of the iPhone when it comes out. If the iPhone does very well this stock is going to boom, but if the iPhone doesn't live up to expectations, the stock can go down quite a bit. I personally think the iPhone will do well, at first it may have a couple of glitches, many will go out and still buy one. Apple has of now in the present day is only helping its stock, it just upgraded the ever popular Macbook and is offering exclusive Pre-Orders for Paul McCartney's latest album. This is still one of those stocks on the wire for me just because of the iPhone, if it does well this stock will boom.

MH

Stocks that will make you consistent money:
1) Arch Coal(ACI) 38.91

I began recommending ACI in an accounting paper when the stock was at 28 almost three months ago. I did all my homework on ACI: looked at every financial statement and even listened to the most recent conference call. Fact is, ACI is a cyclical stock and as long as the Fed doesn't go ahead and raise rates on us, ACI is going to have consistent growth up until the 40's. This company is extremely well run and has continued to inch forward, despite first quarter earnings that were well below Q4 of 2006(mainly due to the cyclical nature of the stock). Be warned though, if the Fed decides to raise rates, consider dumping ACI.

2) Alcoa(AA) 39.21

Another cyclical stock here with great gradual growth potential. No, you will not wake up one morning and see that AA has jumped all the way to 50(unless it proposes another takeover deal), but nonetheless, AA is a great local stock.

Stocks that could be headed for a huge jump:
1) Robert Half International(RHI) 35.00

Not many people know about this company, so let me give you a brief introduction. They have consulting and auditing services. I listened to the latest conference call, and management still appears to have a lot of confidence in the stock, despite the fact that it had plummeted from the mid 40's to the low 30's in a matter of days. One of the biggest things that I look for in a company is Debt:Equity ratio, and it's about 1:2.5 for this company, which is great news. Not only that, but they have almost no long term debt! Look for this to go to the mid 40's in the next few weeks.

2) Buffalo Wild Wings(BWLD) 79.20

Even though Cramer mentioned this on his show, I'm completely agreeing with him that Buffalo Wild Wings is going much, much higher. They have exhibited huge growth potential despite the fact that they haven't even begun to go national. One of the golden rules of food or retail stocks is to get them as they are moving from a local to a national level(which I believe BWLD is). Look for huge growth from them in the next 6 months.

3) Jones Soda(JSDA) 20.33

After a extremely impressive run earlier this year from 12 dollars to almost 30, the stock has dipped back into the low 20's. I still believe that there is incredible amounts of growth associated with this brand as they have just begun to enter the soda industry. Although they are in an industry where Coke and Pepsi have been stagnant, they bring an X factor: they use high fructose corn syrup in their product which differs from Coke and Pepsi. Once again, I warn you though, for as much upside this stock brings, there is also a large amount of risk involved.

Stocks I would consider selling or shorting:

1) Foster Wheeler(FWLT) 96.00

People are going to start going crazy on me for this one. However, I think that FWLT is headed for a big fall after it had an immaculate run from the mid 60's to almost 100. The fact of the matter is that a company who is focused on chemicals and energy just cannot maintain that type of growth for so long. Despite the fact that it is up another 5% today, I would begin selling FWLT at 96 and start shorting it right here. Look for FWLT to descend back into the low 80's or high 70's by the end of next week