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Monday's Power Rating Upgrades: TECD, LXK, SJR

By David Goodboy | TradingMarkets.com
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The last week has been a trying time for many investors. Wild swings and unprecedented volatility have tested the stock picking skills of even the most experienced stock market player.

However, it's critical to remember that within even the most extreme overall market conditions one can locate pockets of relatively stable stocks that are likely to outperform over the long term.

We have conducted studies and testing over the last 12 years to determine exactly what it is that distinguishes these winners from the herd of mediocre and downright loser stocks. The results of this extensive research into the inner nature of equities has been simplified into our Long Term PowerRatings ranking system. This system rates stocks on a scale from one to ten based on the likelihood of them being higher one year forward.

Stocks that have earned a 10 rating have an 81% chance of trading higher one year from now. Those with a 9 rating have proven to have a 79.1% chance of being higher a year later, and so on down the scale. Building a portfolio of top rated stocks and avoiding those volatile and risky ones on the bottom of the rating scale has proven to be a successful method across most market conditions. Let's take a closer look at several of the stocks earning upgrades this week:

Tech Data Corp (TECD | Quote | Chart | News | PowerRating) - This Clearwater Florida based wholesale distributor of IT products was just upgraded from a 7 to an 8 Long Term PowerRating. Strong European results in the fiscal 2nd quarter of 2009 lifted most of the traditional metrics over last year same time. However, U.S. performance was lagging over all this quarter. The CEO stated that they will be revamping the shipping and handling policy among other things in the next quarter to help lift performance. Technically, the stock has been in a downtrend over the last several weeks. It may have found a bottom here around the $20.00/share area.

TECD PowerRatings Chart

Lexmark International (LXK | Quote | Chart | News | PowerRating) - If you know computer printers, you know this popular computer printer and scanner maker. This $5 billion dollar revenue company was just upgraded from a 5 to a 6 Long Term PowerRating. Price has been down trending since September, but looks like a base may be forming here around the $25 to $28 per share range. They release third quarter results on October 21, 2008. Second quarter was strong with 50% year to year operating income growth, and a $158 million dollar share repurchase.

LXK PowerRatings Chart

Shaw Communications (SJR | Quote | Chart | News | PowerRating) - This Canadian cable TV firm just climbed from a 5 to a 6 PowerRating. They just increased dividends .80 cents and reported strong results for the second quarter. Importantly, subscriptions are increasing and revenues were up nicely. The shares have been down trending since September, but 16 appears to be a solid base.

SJR PowerRatings Chart

Click here to start your free, 7-day trial to our Short Term PowerRatings!

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.


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