Today’s recommendation comes from the Coolcat Total Stock Market Portfolio, edited by Kevin Kennedy. Kennedy recommends buying Stamps.com (STMP) (a dot-com-era high-flyer that’s has come back to life over the past year) below 26.50; the stock closed at 26.71 yesterday, so Daily Alerts readers may have an opportunity to act on his recommendation soon.
“Stamps.com, Inc. (STMP) provides web-based postage products. The stock rose 97% last year and surged 59% in October to cap a streak of five straight winning months. It’s 19% off its high. The stock sells for about four times annual sales of about $100 million and has a P/E of 16. It had a string of 25 straight profitable quarters snapped with a one-cent loss last year and has since started a new streak with three straight moneymaking quarters, more than doubling 2010 earnings in the process. It’s a recent addition to my Super Small Caps Portfolio. Buy 275 Stamps.com (STMP), limit 26.50; if order is hit, establish sell stop of 22.99.”
- Kevin Kennedy, Coolcat Total Stock Market Portfolio, March 14, 2012