Weekly Stock Pick

Scanning the charts this week, it’s ironic that the best low risk high reward trade setup I could find is with a company that checks and rates companies financial information and provides other business information services. Too bad the US taxpayers didn’t have this company check the credit rating of the Fed, Fannie Mae, Freddie Mac, and the banks before their liquidity over-leveraged credit crisis started unfolding onto main-street.

I think the lesson learned here is to always do your homework to prevent future disasters of the situations you get involved in. In this over-loaded information age, it pays to have some high-technology services to help you out with that. I'm buying long on information analysis services in this century for sure.

Buy Long Dun & Bradstreet. Ticker DNB

Buy Entry: 87.17 to 90.53

Stop-Loss: 86.80

Take Profit Areas

95.67 to 98.24

98.45 to 100.10

101.12 to 102.82

107.32 to 109.12

125.16 to 127.26

The fundamental story behind Dun & Bradstreet is to say the least, is information. And in this age of mega amounts of information, companies like this provide a great service of weeding out the dis-information in information. After running a stock valuation based on all of DNB’s current fundamental numbers, the output on fair value is 130.00 per share. I think I forgot to input into the valuation model that there’s a major liquidity and financial markets crisis going on right now. Its three main competitors are Axiom ACXM, Equifax EFX, and InfoGroup IUSA. I see DNB as an attractive low risk 3:1 reward buy right now for at least a short to intermediate term trade.

Dun & Bradstreet Company Profile

The Dun & Bradstreet Corporation (D&B) is a source of commercial information and insight on businesses. As of December 31, 2007, the Company’s global commercial database contained more than 125 million business records. The database is enhanced by its DUNSRight Quality Process. The Company provides customers with four solution sets: Risk Management Solutions, Sales & Marketing Solutions, E-Business Solutions and Supply Management Solutions. D&B operates through two business segments: United States (U.S.), which consists solely of its United States operations, and International, which consists of its operations in Canada, Europe, Asia Pacific and Latin America. During the year ended December 31, 2007, the Company acquired First Research, Inc., Purisma Incorporated, AllBusiness.com, Inc., substantially all of the assets of n2Check Limited, and substantially all of the assets and certain liabilities of the Education Division of Automation Research, Inc., doing business as MKTG Services.

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