Monday PowerRatings Upgrades: KMP, BLL, FFIV

Stocks are selling off hard on this first day of the week. The reality of large banks flooding the market with shares in an effort to raise capital combined with profit taking is depressing stocks in the morning hours. The S&P 500 has rallied 14% during the earning season therefore profit taking should be expected during the upward move.

It's important to keep in mind that markets never go straight up, it's always several pushed upward, then a drop before the next surge. Picture perfect bull markets often look like a series a waves moving higher overall. Will the optimism continue throughout the month? I sincerely believe the probabilities are far greater on the upside than the downside at this time. However, no one really knows for certain. One thing that can be counted on is our Long Term PowerRatings have been creeping higher for a variety of stocks. This remains a solid bullish signal for the market overall.

However, regardless of what the future holds, it's critical to remember that within even within the most extreme overall market conditions one can locate pockets of relatively stable stocks that are likely to outperform over the long term. We have conducted studies and testing during the past 13 years to determine exactly what it is that distinguishes these winners from the herd of mediocre and downright loser stocks. The result of this extensive research into the inner nature of equities has been simplified into our PowerRatings ranking system. This system rates stocks on a scale from one to ten based on the likelihood of them being higher one year forward. Stocks that have earned a 10 rating have an 81% chance of trading higher one year from now. Those with a 9 rating have proven to have a 79.1% chance of being higher a year later, and so on down the scale. Building a portfolio of top rated stocks and avoiding those volatile and risky ones on the bottom of the rating scale has proven to be a successful method across most market conditions.

Let's take a closer look at several stocks earning upgrades this week:

Kinder Morgan Energy (KMP | Quote | Chart | News | PowerRating) - An energy pipeline transportation company who operates over 26000 miles of oil and gas pipelines in North America. They were just upgraded from a 6 to a 7 Long Term PowerRatings. Weak commodity prices depressed the major fundamental metrics during the first quarter 2009. However, cost cutting and lower interest rates provide strong chance for improvement into the rest of 2009. The CEO Richard Kinder gave optimistic guidance into the year, particularly focusing on the multi billion dollar investment program which will drive growth into the future. Technically, price has been uptrending since March 9th. Shares are above the 50-day SMA and trading directly below the 200-day SMA which is acting as resistance at this time.

Ball Corporation (BLL | Quote | Chart | News | PowerRating) - A consumer packaging and aerospace company that was just upgraded from a 5 to a 6 Long Term PowerRatings. First quarter results were slightly down across most metrics but a disciplined cost cutting plan should lead to improved next quarter performance per the CEO. Interestingly, the Ball built Kepler spacecraft was launched in March carrying the largest camera ever sent beyond earth's orbit in search of habitable planets. Technically, shares bounced from a sharp downtrend but have been rejected back down at the 200-day SMA. Price is currently resting around $38.00/share

F5 Networks (FFIV | Quote | Chart | News | PowerRating) - This company specializes in internet application delivery networking. It was just upgraded from a 4 to a 5 Long Term PowerRatings. Performance during the second fiscal quarter 2009 was slightly down overall however the company expects to meet its projections into the next quarter. On the chart, shares have been uptrending since March 9th and price is above both the 50 and 200-day SMA's. However, resistance appears to have been encountered at the $29.00/share range.

Learn what you need to know as an active investor looking to invest in companies with a history of financial strength and a track record for growth. Click the link above or call us at 888-484-8220 extension 1 to get your copy of the "5 Secrets to Successful Stock Investing" today!

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