Today’s Barron’s offers some stocks to ponder. While Kopin Tan and Michael Santoli gave reasons for a more bearish overall outlook, these stock picks might be ripe for investing if you listen to Barron’s other writers. I’m not so sure I agree on most of these. A few weeks ago I agreed with most of their stock picks, but the majority of this week’s ideas leave me feeling like something is missing.
On page 11, ICE was a focus of “The Striking Price” article. At a price of over 157, I don’t think I can get into it now with my account stretched thin already.
On page 21 BLC followed by mentions of GCI, MEG and JRN were given a bullish outlook. BLC gapped up last week and I’m not sure how to read the volatile chart. GCI and MEG haven’t broken their downward trend of lower highs yet while JRN is still searching for its own footing.
On page 26, LDK among other Chinese solar companies were the focus of possible reasons to SHORT the stocks. LDK has serious internal problems with their CFO leaving and blasting their system for accounting for inventory. Saying the company looks shady is a compliment. I’m not much of one to short a stock. I might have to consider selling naked calls or buying a put on LDK though. The article was interesting and the chart is scary, in a “look out below” kind of way.
On page 28, PAYX is brought into focus as a company that could hit 50 within the next 18 months. It closed Friday around 42 and appears to have little downside left in it although its still in a downward trend. This might be an IRA buy and hold move for me.
On page 29, CAH is said to have future growth in the mid-teens and could go to 74 or even 90 depending on which analyst you listen to. They recently hired a new CEO who appears to have his act together. The just bounced off of their declining line of lower lows, so it could have a short rise. Once it gets out of this downward facing trading channel, CAH could be a profitable move.
On page 38, COV is touted as a stock that could rise 25-40% in one to two years. I’d like to see it break 44 to prove it’s ready for the big leagues again, but even getting in now might not be such a bad move.
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