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Top stocks 2013: 3D Systems and Gannett


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by Joseph Parnes, editor Shortex Market Letter (courtesy of Dick Davis Digest)

My top speculative pick for 2013 is 3D Systems Corp. (DDD), a maker and marketer of 3D printers and services. My top conservative idea is Gannett Co., Inc. (GCI), the publisher/owner of USA TODAY.

3D Systems reported third quarter earnings up 87%, with revenue up 57%. Recent secondary offering increased cash to $110 million. The stock rocketed through secondary resistance at $37-$39 and is now challenging its previous high of $49.35.

Or recommended buying range is $42-$45. Our near-term objective is $54 and our intermediate-term objective is a move to $63. We recommend a stop loss at $37.80.

Meanwhile, Gannett is up 100% over the past year-plus. Trading at a P/E of 10.91 vs. a past P/E of 25, GCI warrants P/E ratio expansion to match its current valuation.

The dividend yield, at 4.3%, is superior to other media stocks. Short interest is 24.85 million shares (10.6% of the float) -- skeptical investors and traders are a plus. The ascent from $14.80-$15.80 with a spike in volume is indicative of accumulation/short-covering.

Or recommended buying range is $16-$19. Our near-term objective is $22 and our intermediate-term objective is a move to $28. We recommend a stop loss at $15.30.

Learn more about this financial newsletter at by Joseph Parnes' Shortex Market Letter.

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