(DECK) - (LEAP) - (CHAP) - (FRPT) - (GRMN) - Jim Collins, The OTC Insight newsletter

Jim Collins, editor of The OTC Insight newsletter, explains that valuations remain quite reasonable on a 12-month basis and the prospects are good for moderate economic expansion. Read this featured expert's market update and learn about recent economic reports. Then take a look at a few stock picks and check out some recent company news. MARKET UPDATE from December 26 On Thursday the Federal Reserve Bank of Philadelphia reported business activity fell unexpectedly in December. This announcement coincided with a downward revision in third-quarter growth gross domestic product, which also was not anticipated. Coupled with reports showing a declining housing industry and lower than expected personal income and spending, pessimists are trumpeting their concerns over upcoming earnings. However, there were also several economic reports to which optimists could point for their argument. These included a better than expected report on the leading economic indicators, orders for durable goods, and consumer sentiment. Combined with the overwhelmingly positive news the week before, there is no need to become overly concerned. All of the news is consistent with what Insight has been saying for quite some time, and that is fourth quarter earnings will be decent-not great and not bad. Heading into 2007, valuations remain quite reasonable on a 12-month basis and the prospects are good for moderate economic expansion. Jim Collins and his team have noted the stock market remains susceptible to a small, short-term decline for no other reason than stocks have had a long, sustained climb. Stock Picks include Deckers Outdoor (DECK) designs, manufactures, and markets innovative, function-oriented footwear and apparel that have been developed for high-performance outdoor, sports and other lifestyle related activities, as well as for casual use. Leap Wireless International Inc. (LEAP) is a customer-focused company providing innovative mobile wireless services that are targeted to meet the needs of customers who are under-served by traditional communications companies. With a commitment to predictability, simplicity and value as the foundation of their business, Leap pioneered Cricket' service, a simple and affordable wireless alternative to traditional landline service. Cricket service offers customers unlimited anytime minutes within the Cricket calling area over a high-quality, all-digital CDMA network. A Sampling of Company News: Chaparral Steel (CHAP) reported fiscal second quarter results last Tuesday. The company recorded net income of $67.5 million, or $1.40 per share, for its second quarter ended November 30. This represents a 98% increase in net income over the $34.0 million, or $0.72 per share, earned in the second quarter of fiscal 2006. Force Protection (FRPT) and General Dynamics Land Systems today announced on December 22nd, they will form a joint venture to compete for the Mine Resistant Ambush Protected (MRAP) vehicle program, a U.S. joint services program being managed by the U.S. Marine Corps. The joint venture was formed to offer Force Protection's Cougar 4x4 and 6x6 armored vehicles as an MRAP solution. The joint venture will include an experienced team in program management, systems engineering, production and service support from both Force Protection and General Dynamics. Garmin (GRMN) learned over the weekend that a United States District Court decided in Garmin's favor in their pending patent litigation against TomTom. The Court's ruling gave Garmin a complete victory in its defense of TomTom's claims of infringement of three patents and left undecided many of the claims filed by Garmin against TomTom. TomTom alleged that over 60 products made by Garmin infringed these three patents and sought substantial damages and a permanent injunction against further sales of these Garmin products. This article highlights the commentary of Jim Collins for the Zacks.com audience. Jim Collins provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "OTC Insight" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "OTC Insight" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home