Out of the restaurant companies that I am covering, 3 of the names were on my radar screen late last year, with a formal recommendation of Chipotle’s “B” [[CMG-B]] shares at around $45 per share in my Top 5 Stocks for 2009 article.

I still feel strongly that this entire sector at the very best, is going to trade sideways for awhile, and at average to worse, is going to decline significantly for at least the next few weeks to months. Let’s get right into each name.

Insiders selling shares like there’s no tomorrow

Chipotle Mexican Grill owns and operates 860 “fast-casual” Mexican restaurants and offers a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere.

Chipotle adheres to what

Still keeping my eye on the Sequenom (SQNM) – but the whole idea with this name was to avoid the small cap “biotech” bipolar experience (either a huge win or a huge loss). Unfortunately, this is what this has now turned to, a coin flip. Probably the most bizarre disclosure I’ve ever been associated with, and I’ve seen many off the wall things in my years in the market.

Per CBSMarketwatch

Shares of beleaguered biotech Sequenom Inc. got a much-needed boost last week in the form of a somewhat favorable report issued by Lazard Capital Markets, but is the stock really that seaworthy?
Sequenom jumped nearly 15% on May 27, after Lazard analyst Sean Lavin upgraded the stock, now trading in the $3 range, to hold from sell, saying he believes it had more potential upside than downside.
While cautioning that the …

Aaron’s Inc. is a NYSE-listed company, founded in 1955 in Atlanta, GA, formerly known as Aaron Rents, that operates 1,053 and franchises 504 consumer electronics, appliance, and residential/office furniture sales/lease stores in the U.S.A. and Canada. Some of the items AAN offers include widescreen, LCD televisions, computers; upholstered living-room furniture like sofas, sofa beds, chairs, modular sofas; bedroom furniture like bedding, mattresses, and box springs; dining room furniture; washers, dryers, refrigerators, lawn tractors; office furniture like desk, credenzas, conference tables, bookcases, and chairs. These items come from brands such as JVC, Mitsubishi, Philips, LG, Sony, Dell, HP, Simmons, Frigidaire, GE, and Sharp.

It is obvious by just looking at the business that Aaron’s Inc. is in that you do not need a Master’s degree in Computer Science to fully understand what this company is doing. While that is good …

Medassets Inc. (MDAS) is a Alpharetta, Georgia provider of revenue cycle and spend management software for hospitals and other healthcare providers that is seeing strong demand for its product and for its common stock shares. Let’s look at the fundamentals of this company (the meat and bones) to see why this mutual fund demand is so strong.

The EPS of MDAS started to turn down in 2006 and that lasted until early 2008 when it finally started to turn around. For the past five quarters, EPS has been growing at 10%, 175%, 999%+, 999%+, and 0%. During the past eight quarters sales growth has been 13%, 32%, 46%, 39%, 42%, 54%, 55%, and 34%. While it is obvious that the EPS and sales are slowing in the most recent quarter, YOY EPS estimates for 2009 and 2010 still see an increase …

NVEC manufactures spintronic magnetic sensors, couplers, and memories used to acquire, store, and transmit information. If this sounds like a complicated business with all the technoterminology how are we supposed to understand this company? That’s easy. History proves that the best stocks in history showed certain fundamental and technical traits before going on big runs. NVEC is showing those traits. So let’s take a look.

The EPS growth on NVEC the past eight quarters has been terrific with 154%, 74%, 26%, 64%, 42%, 21%, 41%, and 44% gains. During that same time sales has grown 31%, 29%, 14%, 24%, 32%, 3%, 14%, and 23% helping push earnings from around $4.5m to $6m. This growth looks to continue with 2009 estimates for a 27% increase YOY for EPS. 2010 is for a 9% increase. This kind of earnings power, with an EPS …

Despite efforts by the Treasury Department and the Federal Reserve to thaw the credit markets, normal lending remains hamstrung. This is a both a significant problem and an enormous opportunity.

The problem, of course, is that if manufacturers can’t borrow to buy from suppliers, and wholesalers can’t borrow to buy from manufacturers, and retailers can’t borrow to buy from wholesalers, then consumers can’t get auto loans, credit cards, and mortgages.

The economy faces a serious headwind.

The companies in the toughest position, however, are those that are highly leveraged. Even though interest rates have fallen substantially, they aren’t able to access the credit markets (at reasonable rates) or increase their bank lines to get the liquidity they need.

And therein lies an enormous opportunity for investors like you and me - profiting from corporate takeovers.

Corporate Takeovers - Solid Companies vs. Weak Competition

Companies that have solid balance sheets and high levels of cash are

Rosetta Stone is a company most of us have been familiar with since around 2005. However, since then, it has become an amazing powerhouse of earnings and sales growth.

Recently, RST came public and when it came public it brought with it some amazing fundamental growth as a provider of interactive language learning software online and through CD-ROM.

Earnings have been very impressive recently with EPS growth of 999%+, 999%+, and 118% the past three quarters. Sales have grown 27%, 33%, 52%, 88%, 22%, 57%, 72%, and 54% the past eight quarters. While there are no forward earnings estimates yet, I believe it is safe to say the earnings and sales are probably not going to slow any time soon with the demand for everyone to know multiple languages.

Other impressive numbers come with debt of only 7% yet return-on-equity is a strong …

By John Ward (previously published at bigwavetrading.net)

No doubt about it, this market’s price/volume action continues to impress. When we rally, we do so on heavy volume; when we pullback, volume contracts and, more than that, we have gotten into the habit of closing in the upper part of the day’s range. Just what you want to see. Yet don’t be lulled into thinking that all is now hunky-dory (the Put/Call falling to .60 tells me many have). This rally, while impressive given the gains of the past month, still leaves much to be desired.

As it stands now, only the Nasdaq trades above its downtrend line:

China's A-Shares No. 1 In First Quarter

The best performing index in the first quarter was the Shanghai Composite, according to this Investor's Business Daily report.

It notes that a closed-end fund tapping into mainland China's stock exchange, which is largely closed to outside investors,  the Morgan Stanley China A Share Fund (CAF), has gained 49% so far this year. 

The story notes that China-focused ETFs haven't fared as well since they don't invest directly in A-Shares. But technically, they seem to be holding up well, writes IBD markets reporter Trang Ho. 

(Interestingly enough, Van Eck Global has filed to offer the first A-Shares focused open-end ETF. See story here.)

You can read the IBD report here.

Japan Tries Another Round of Stimulus Packages With ETFs

Japanese Prime Minister Taro Aso is moving forward with plans for another round of government-enduced stimulus packages aimed at jolting the country's falling economy.