IBD screen: Leaders rising est

Investment Analysis Clubs Saul’s Investing Discussions
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Leaders with Rising Estimates
http://research.investors.com/screen-center/?ref=2MSOTD

Link may be dead by midnight or Friday afternoon.

http://stockcharts.com/freecharts/candleglance.html?MXL,AHS,…

http://stockcharts.com/freecharts/candleglance.html?OZRK,COR…

Note it has our LGIH on the list. The recently noted HAWK and at least 3 SA picks I own.

OZRK is a top rated bank, but I have not compared it to INBK.

I sold FLTX a couple days ago and redeployed in SEDG, ABMD, SKX,

LifeLock (LOCK) I would not touch as there a lots of horrible reviews of their product. I checked it out for myself and was not impressed. I was “lucky” enough to be on the OPM list that China stole, so I have 3 years of coverage, but I don’t think the company is publicly traded. 40 million new customers, so too bad.

IBD top 50
1 - Dycom
2 - LGIH
3 FLTX
5 - PAYC
17 - HAWK

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Puddin,
Just a little personal experience with Lifelock. Early this year I learned that someone had filed a false tax return using the social security numbers of me and my wife. I called LifeLock and some functionary said, “we don’t get involved with things like that, and really don’t know what to tell you. Maybe you should call the IRS and try to get them to help you”.
I discovered the breach after trying to file my return using Turbo Tax, so I called them and got through to a fraud expert who stopped one step short of saying that Turbo Tax had been hacked, and that is how the bad guys got our numbers, but he did walk me through the steps I needed to take and then Intuit provided a free three year subscription to Protect My ID, which is an arm of Experian, and those people seem to be much more customer friendly than LifeLock.
The most helpful and cheerful people we encountered through the whole experience were the folks at the IRS, they were great.
Just wanted to touch on that Puddin, as you mentioned LifeLock and both the fraud guy at Turbo Tax and the IRS employees we spoke with say this type of activity is growing rapidly so maybe it can help someone.
Oh and final note, the IRS noticed that the fraudulent filing would result in a refund of over 4 thousand dollars and my wife and I always plan our taxes so that we have to pay at the end of the year. That fact alerted the IRS so they put a stop on the refund and were still holding that when I contacted them so the bad guys got no money.
Mike

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I saw that NTES was #7 on the first list that you sent. I know as a general rule there has been an avoidance/distrust of Chinese stocks, but this one I’ve had around since it was in teens and 20s and has been a steady grower for the past decade. And, they’ve really been on a growth tear for the past couple of years and have been accelerating even further for the past couple of quarters. I think they are worthy of consideration.

NTES is not your typical Chinese stock. They don’t sport an insane P/E like the rest of the Chinese internet stocks and are instead grounded in strong fundamentals with boatloads of cash. Plus their margins are north of 70%.

They’ve historically focused on internet-based games, the Massive Multiplayer Online Role Playing Games (MMORPG). In China, software piracy is rampant, but with the internet-based model the software itself is free and you pay for subscriptions. They are huge in China. Gaming in China is the equivalent pastime of watching TV in the West. In addition to their own in-house games they have a long running partner agreement with Activision-Blizzard to licenses their games. If you’ve noticed, ATVI has been on a bit of a tear recently too, and there is a slight correlation.

That said, NTES has a good foundation of gamers for their own in-house games, and, they are making the push into mobile having a few released this year. They recently made a strategic purchase of a cutting edge mobile gaming dev shop in Europe to keep building on their base.

Here is a blurb on the recent gaming downloads this year. Keep in mind this list is from China. They released a few new games to North American and European markets this year as well, but have not caught on as strongly quite yet.

China Top 20 iOS Games – Fantasy Westward Journey on Top
NetEase’s Fantasy Westward Journey topped both the revenues and download charts in May, not moving after its number one debut in the April rankings. This comes as no surprise, as we’ve previously seen the game debut at number one in our Top 20 Grossing Android Games in April. The mobile MMORPG games is based on NetEase’s hugely successful PC client game that has attracted more than 310 million registered users over the last 10 years.
Read more at http://www.newzoo.com/insights/new-the-top-ios-games-in-the-…

If you read between the lines 1) NTES has a huge base of paid subscribers and 2) they monetize on that base by providing fresh content and fresh games to keep that base engaged and are expanding to other platforms (mobile devices).

With the expansion of mobile devices set to expand even further in China their upside looks really good.

Did I mention they have a huge cash hoard?

Check them out.

–Kevin

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Thanks Kevin, I know it’s a rec from one of the Fool services and never looked into this company. Now I am interested.

Zangwei

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Mike,

…
I discovered the breach after trying to file my return using Turbo Tax, so I called them and got through to a fraud expert who stopped one step short of saying that Turbo Tax had been hacked, and that is how the bad guys got our numbers,
.
If that were true, I suspect it would happen to everyone using Turbo. The refund scam is common and I am quite surprised the IRS caught it. They recently sent hundreds of refunds to the same address somewhere in Eastern Europe (or Russia) - that should be easy to catch. Another story is of the postal service delivering scores of refunds to the same address on the same day - that would be two Gov agencies missing the obvious.

When my work colleague had the same issue, the IRS issued him a 6 digit code so it won’t happen again. I have applied for one since I was hacked in the OPM hack. Oh, gov agency#3 - thank you very much.

The most helpful and cheerful people we encountered through the whole experience were the folks at the IRS, they were great.
Very lucky.

Just wanted to touch on that Puddin, as you mentioned LifeLock and both the fraud guy at Turbo Tax and the IRS employees we spoke with say this type of activity is growing rapidly so maybe it can help someone.
Oh and final note, the IRS noticed that the fraudulent filing would result in a refund of over 4 thousand dollars and my wife and I always plan our taxes so that we have to pay at the end of the year. That fact alerted the IRS so they put a stop on the refund and were still holding that when I contacted them so the bad guys got no money.

As an old software engineer it really frustrates me to see the Gov operating on what appears to be 1980s technology. Arg. Credit Card companies can sure detect fraud pretty well, why can’t our Gov!

Get you IRS filing code if you have not!!!

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