Monday, October 09, 2006

(NDE) - (CVX) - (TWGP) - John Reese, Validea Hot List newsletter

John Reese, editor of the Validea Hot List newsletter, notes that the Validea Hot List has grown nearly five times the 35.3 percent increase in the S&P 500 during the same period. Find out the percentage gain for the Hot List. Then receive an update on the year-to-date and more recent gains of the Validea versus the S&P 500. Afterward, learn about an addition to this featured expert's portfolio as well as a couple other Hot List holdings.

Validea Hot List Performance from October 6

Since inception, the Validea Hot List has grown 166.6 percent, nearly five times the 35.3 percent increase in the S&P 500 during the same period. Year-to-date, the Validea Hot List is up 20.1 percent, more than double the 8.4 percent gain of the S&P 500. And since the last issue of the newsletter two weeks ago, the Validea Hot List is up 3.5 percent, at a time when the S&P 500 rose 2.7 percent.

An Addition to the Hot List

IndyMac Bancorp (NDE)

This company is favored by two guru strategies. One of the gurus is David Dreman.

The strategy based on David Dreman's approach to investing likes IndyMac. IndyMac passes three contrarian tests: being in the bottom 20 percent of the market for P/E ratio, price-to-cash flow ratio and price-to-dividend ratio.

As indications of the company's financial health, it has a strong return on equity of 21.16 percent, pre-tax profit margins of 44.91 percent (way above the 8% minimum required) and a strong yield of 4.5 percent.

Other Hot List stocks include:

Chevron Corp. (CVX), formerly ChevronTexaco Corporation, manages its investments in subsidiaries and affiliates, and provides administrative, financial and management support to the United States and foreign subsidiaries that engage in integrated petroleum operations, chemicals operations, coal mining, power and energy services. Petroleum operations consist of exploring for, developing and producing crude oil and natural gas; refining crude oil into finished petroleum products; marketing crude oil, natural gas and the many products derived from petroleum, and transporting crude oil, natural gas and petroleum products by pipeline, marine vessel, motor equipment and rail car. Chemicals operations include the manufacture and marketing, by affiliates, of commodity petrochemicals for industrial uses, and the manufacture and marketing, by a consolidated subsidiary, of fuel and lubricating oil additives.

Tower Group, Inc. (TWGP) offers a range of specialized property and casualty insurance products and services to small to mid-sized businesses and to individuals in New York State and the surrounding areas through its wholly owned subsidiaries, Tower Insurance Company of New York (TICNY), Tower National Insurance Company (TNIC) and Tower Risk Management Corporation (TRM). TICNY is a property-casualty insurance company. TNIC is a property and casualty insurance company. TRM is a non-risk-bearing insurance services company that produces, through its managing general agency, business on behalf of other insurance companies. The Company's commercial lines products provide insurance coverage to businesses, such as retail and wholesale stores, grocery stores, restaurants, artisan contractors, and residential and commercial buildings, while its personal lines products focus on modestly valued homes and dwellings. Tower operates in three segments: Insurance, Reinsurance and Insurance Services.

This article highlights the commentary of John Reese for the Zacks.com audience. John Reese provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "The Validea Hot List" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "The Validea Hot List" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now.
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