Monday PowerRatings Upgrades: PAS, NDSN, RSG

• By David Goodboy
• On 10:51 am EDT, Monday September 14, 2009

David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.

The multiple day rally ended on Friday and it appears that the selling may continue on this first day of the trading week. Tensions between the United States and China in a brewing trade war have sent the world's stock markets lower overnight. Is this pullback just a blip on the longer term bullish screen or is this selling the start of a significant sell off for the indexes?

Truth is no one really knows for sure. This is why prudent long term stock investors need proven tools to help them pick stocks most likely to outperform over the long term. Our Long Term PowerRatings are one such tool. This tool is statistically proven to locate the stocks most likely to appreciate over the next year time frame regardless of economic or underlying market conditions. Stocks that have earned a 10 Long Term PowerRating have been proven to have a 81% chance of being higher one year later, those with a 9 rating possess a 79.1% chance of being higher one year later. Conversely, those with the lowest 1, 2, or 3 ratings have shown to simply be too volatile, thus risky for prudent long term investment. Due to the extreme volatility of the low rated stocks, of course, several will outperform, sometimes returning many fold percentages. However, 65% have been proven to lose money over a year time period. In fact, they lost an average of 5% of the year timeframe. Our studies clearly indicate that conservative, long term investors should avoid stocks with low PowerRatings and build a portfolio of those with high ratings.

Let's take a closer look at several of the upgrades today:

PepsiAmericas (NYSE:PAS - News): The world's second largest seller, manufacturer and distributor of PepsiCo beverages. They have revenues of over $4 billion and serve a 19 state area in the United States plus Central and Eastern Europe. The company was just upgraded from a 7 to an 8 Long Term PowerRating. They experienced a solid second quarter with adjusted EPS up 3%, US revenue up 5% and they increased full year 2000 outlook. Technically, price gapped up on August 1st and has hit resistance at $28.50/share where a double top may be forming.

Nordson Corp (NasdaqGS:NDSN - News): One of the world's largest producers of machinery that applies adhesives during manufacturing processes. They were just upgraded from a 6 to a 7 Long Term PowerRating. The company has launched a firm wide cost cutting initiative that has enabled it to perform well despite the slowing economy. Technically, price has been uptrending since July 13th. The company is trading nicely above both the 50 and 200-day SMA at 47.15 and 36.04 respectively.

Republic Services (NYSE:RSG - News): A waste management company that has just been upgraded from a 6 to a 7 Long Term PowerRating. They just raised their EPS 2 cents, raised the free cash flow numbers $25 million dollars and increased full year guidance for 2009 in the second quarter. A quarterly divided of 19 cents/share was announced to be paid on October 15th, 2009. On the chart an uptrend is in place with the 50-day Simple Moving Average acting as support.

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Buzz up!