PowerRatings Best of the Requests: MDT, ALK, DBD

The Long Term PowerRating Community was very active during this extremely volatile week with stocks that spanned the spectrum from a 1 to an 8 rating. These uncertain economic times make having a proven stock picking method for your long term portfolio all the more critical.

Our studies have shown that stocks with a 9 Long Term PowerRating have a 79.1% chance of closing higher one year later, and those with the coveted 10 rating possess an 81% chance of being higher one year later. On the other hand, those with low 1, 2, or 3 Long Term PowerRating have proven to simply be too volatile, thus risky for your conservative, prudent long term portfolio.

Our studies were done over the last 12 years, across most market conditions in a statistically sound manner. The current volatile and uncertain market environment makes knowing the Long Term PowerRatings mission critical. Let's take a closer look at several of the "Most Requested".

Medtronics (MDT | Quote | Chart | News | PowerRating) - This medical equipment maker earned an 8 Long Term PowerRating. It's the number one requested stock by our PowerRating community. The stock has been pulling off from a steady uptrend over the last several weeks, but still appears to be resting above the 50-day Simple Moving Average. They recently announced that first quarter revenue was up 19%. Earlier in September, I featured this stock in a top performers list in the weekly wrap up article.

Figure 1: MDT PowerRatings Chart

Alaska Air Group (ALK | Quote | Chart | News | PowerRating) - On the other end of the ratings, in the 3rd most requested slot, lays this 1 rated stock. It is vastly underperforming its regional airline sector that earned a 4 rating. The airline reported a difficult second quarter with a net loss of $14.1 million and declining capacity.

The company blames fuel costs as the culprit in the malaise. To further the troubles, it was just announced that an employee was misdirecting card payments to the employee's own personal account. Talk about how to easily lose the trust of your customers. Although the company has recently been in a technical uptrend, it's far too volatile to make a good stock for your long term portfolio.

This is one company that should be avoided by long term, conservative investors. Those with an appetite for risk, however, may want to take a chance on this uncertain, low rated stock based on the short term technical picture.

Figure 2: ALK PowerRatings Chart

Diebold (DBD | Quote | Chart | News | PowerRating) - A 7 rated stock that specializes in ATM machines and bank security products. It was recently downgraded from a 10 rating due to volatility. They have just announced preliminary second quarter revenue increase of 11% and a year to date increase of 9.3%. They have raised revenue expectations and reaffirmed operating margin targets for the year.

The company is used by the Bank of China and was chosen as the ATM provider in key facilities for the 2008 Beijing Summer Olympics. Banco do Brasil has just added 5400 more Diebold ATM machines to its self service fleet, further emphasizing the true international impact of the company. Technically, the stock has pulled back over the last several weeks, but appears to have bottomed around the 31 area in a clear double bottom formation on the daily chart.

Figure 3: DBD PowerRatings Chart

Learn what you need to know as an active investor looking to invest in companies with a history of financial strength and a track record for growth. Click the link above or call us at 888-484-8220 extension 1 to get your copy of the "5 Secrets to Successful Stock Investing" today!

David Goodboy is Vice President of Marketing for a New York City based multi-strategy fund.