The Masters 52 Week High Momentum Plays – 10/18/07

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Tickers Mentioned: Game Stop (GME), Dolby (DLB), Thestreet.com (TSCM)

 The Masters 52 Week High Momentum Plays - 10/18/07

215 stocks made the 52 week mile-high club yesterday. We've weeded a few out that could keep going up on momentum alone.

Let's get this show on the road...

 Gamestop Corp (GME)

Let's face it, Video Games are no longer child's play. The average gamer these days is in his 30's. 20 years down the road every 50 year old will have an Xbox 360 in their home. Although by then it will probably be called something like the Xbox 7200.

With GameStop selling new hits like Bioshock, Guitar Hero 3, Call of Duty 4, HL2 Orange Box (currently GameStops's best seller) and of course, Halo 3, it's easy being on top.

The analysts at Bear Stearns initiated coverage of GameStop Corp (GME) on Oct 18th with an "outperform" rating and set a target price of $75.  The analysts mention that the company is benefiting from the sector’s impressive growth potential, high barriers to entry to its used videogame retail business and an efficient management team. GameStop is expected to gain going forward from rising investment by publishers in Europe (according to the analyst comments). They went on to say GameStop's share price does not fully reflect continued growth in the used game business and the opportunity in international markets.

Next Stop - $75 - $90

 Dolby Laboratories (DLB)

We recommended Dolby back in January in our Master Picks Newsletter. It's up 33% since our recommendation back at $30. They just hit a new 52 week high today of $40.19.

They haven't released any news, it seems like this could be earnings anticipation - maybe some good news was leaked? Might be worth keeping an eye on. However back on Oct 8th L. Alan Davis of DA Davidson maintained his "buy" rating on Dolby Laboratories Inc (DLB) and jacked up his 12-18 month target price from $39 to $42.  The Masters like Dolby's royalties from the PC market due thanks to Vista Home Premium and their must-have audio technology in set-top boxes and digital televisions.

TheStreet.com (TSCM)

TheStreet.com gapped up to a new 52 week high yesterday on unusually high volume and no news. Their stock has literally never been that high since its IPO. Can the stock keep it up? It's down 5% today thanks to some profit taking.

 Maybe its buyout time for TSCM? Anything can happen. News Corp's Murdoch is buying Dow Jones for $5 Billion, some media companies might be eyeing TCSM's  $420 million market cap as a bargain. I bet Jim Cramer just bought a pink Cadillac with his money, maybe a new hot tub, who knows. Next thing you know his face will be on the $5 bill -- never say never. 

Other Notable 52 week highs with Mojo: AKS, DTV, XOM, NANO, FSLR, PURE 

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

The StockMasters Master Picks Newsletter has a 17.5% Positive return since our inception in October 2006.  The Average duration for our stock picks is 3.61 months, and we have the track record to prove it (click here to view Master Picks track record). Our price is only $45 for an entire 12 month subscription. That's cheaper than a round of beers and an order of hot wings for your crew. Why not have more money in your pocket for beers and wings?