Biotech Champions Join Free Today

Amongst many other winners, we spot Biotech stocks early in their awareness stages before Investors catch on.

Recent winners include ISIS from $33 to $58 in 6 months.  BLUE from $23 to $83 in 6 months (260%)

CLDX from $13- $20 in 6 months and many more  EXAS $16.75 to $29 in 3 months

All of the above Biotech Ideas were E-mailed to our Members list

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What do we like now?  CHRS (Bio Similars), CNAT (Liver), CNCE (Deuterated versions of drugs), ONCS (T-Cell) OREX (Diet Drug) to name a few… join us for Biotechs and alot more!

Join us Free today so you are on the list for our Stock of the Week Email, our Business Disruptor Reports, and our Weekend Editions which have 8-12 new ideas weekly.  All require passwords and are delivered via E-mail to our Free members

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Weekend Stock Edition Dec 6

Recent closed out SRP Swing positions: Closed out EEFT and TSRA for 6.2% and 6.8% swing gains. Closed out KING for 13-14% swing gains.  Closed out ULTA for 8-9% swing gains. Open gains in CTLT at 8% and EXAS at 19% amongst others. Consider joining us for weekly actionable alerts!

The Weekend Edition Dec 6 2014

We thought we would start off this Weekend Edition with a quote from Investors Business Daily Dec 8th edition (basically their weekend paper)

The term “stock picker’s market” is a cliche, but it certainly applies to The IBD 50. Some names are working well. Others, well, not so much.   The IBD 50 capped its fourth straight weekly gain Friday. It’s gained around 4% over that time, compared with a gain of 3% for the Nasdaq and 2% for the S&P 500.   The IBD 50 might be starting to come back to life, but it’s still not an easy environment to make consistent money in. For growth investors, it’s a time to proceed cautiously with new buys.

You’ll note that we have said at SRP that many stocks are consolidating and causing impatience on the part of investors. We have also written some articles in recent weekends about the same thing. So as we put together our list of swing positions, keep in mind they can consolidate awhile or seemingly get little to no traction. They are up 5%, then down a few % and then back up all in a 5-8 trading day window.  The market as a whole is only up about 1% in the last 4 weeks, so be aware that sometimes its rough sledding, but we still soldier on.  To wit, at our Premium service (www.stockreversalspremium.com) we closed out some profitable swing positions in the past few weeks among them KING, EEFT, TSRA, ULTA with one loser FIVE thrown in. We have several right now at SRP that are in nicely paper profit positions such as CTLT and NXPI to name just a few of 7 currently open.

However recent market trading nevertheless has required nimble action and faster than usual profit taking in our opinion.  Though we remain bullish into the spring of 2015, we have to work within the current environs for our subscribers for best results. Sometimes and in many cases patience does pay off when a growth stock is in a base pattern. We got long EXAS on Oct 20th week at 23.50 average, and then for 7 weeks nothing happened really. Up and down trading, but we held even down to $22.20 per share when we were down 6-7%.  As of Friday’s close we are up 19.6% by being patient and focusing on the valuation, catalyst, and not getting shaken out… know what you own, it can pay off big by not panicking on down days.

Here is another quote from IBD this weekend: 

one of the difficulties of this uptrend. Opportunities are fleeting and require quick action under foggy circumstances.   Once action is taken, it may take weeks to discover if the opportunity truly was fruitful.   Breakouts in recent weeks have been slow to build a decent cushion. This makes the stocks tougher to hold because small gains can vanish in a flash.

So learn some patience in the market, and our opinion has always been that “stocks make their biggest moves in the shortest time frames, you must be in position prior to the move”.  We think  we are in position for several right now and we plan to add a few more this coming week.

SP 500:  The index remains in a Primary wave 5 uptrend from the 1820 Primary wave 4 lows.  Each bull cycle has 5 full Primary waves and we think this is the last wave structure up from the 2009 lows.  This could go as high as 2500 plus, but we expect near 2200 in the winter 2015 as likely.  It’s also a forecast and subject to change, but for now that is our view.

GOLD: Having trouble getting past 1231-1241 key long-term uptrend resistance, until it does we are avoiding the whipsaw action.

Below we list out 10 companies and notes that are making our short list of needing further review but looking attractive as swing position candidates near term. A few of these are possible alert candidates for our Premium service once we do some further drilling down and due diligence, we try to pick the best of the best near term opportunities every week.

ALXN- Alexion Pharmaceuticals.  7 Week Base pattern. Developer of Therapeutics with a recent 50% growth rate

EPAM-  Epam Systems. 6 Week Base pattern.  Has been on our watch list at SRP just this past week. Outsourced I.T. services provider

JAZZ-  Jazz Pharmaceuticals-  7 Week Base pattern. Has been on our list a few times recently. Specialty drugs, strong growth rate, reasonable PE ratio, 8 month base pattern.

URI-  United Rentals-  We were recommending this way back at $71 last summer now $114. Construction and Industrial rental equipment provider, well run, still reasonable PE ratio to growth rate.

EXPE- Expedia.com- Online travel services provider. A bit extended, may be a good buy on pullback

VRX- Valeant Pharmaceuticals- 3 weeks tight base pattern, long-term leader in Dermatology, Neurology etc branded drugs.  Reasonable PE to growth rate.

FDP- Fresh Delmonte- Fresh fruits and veggies food manufacturer. Growth may pick up in 2015

BLL- Ball Corporation- Metal and Plastic packaging manufacturer. Stock may  be a little extended short-term.

QLYS-  Qualys-  Cloud security provider, in a nice 5 week base.  Leader.

AMAT-  Applied Materials- Chip equipment maker, leader.  In a 5.5 month base, tends to  follow the market a bit but recently leading. Maybe a little extended short term.

Consider joining our Premium Service today and get Pre-market updates every day between 8am-9am est. Text/Email alerts for intermediate swing position trades every week (3-4 on average), follow ups daily on every position open. Text and Email alerts for selling, projections, entry ranges, and stops on all positions.

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Weekend Report- Consolidations Are Annoying Eh?

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Sometimes those consolidations in a growth stock can drive an investor nuts.  It can be frustrating when the constant woodpecker like stream of ticker symbols on CNBC look better than your sideways stock. The Stocktwits traders seemingly busy banking gains on their hot stock of the day or week while your  fundamentally strong company sits there ad nauseum.  The tendency is to bail out on your well researched and fundamentally strong company and chase the hot girl up the street.   Surely your money will grow faster if you can just hitch your wagon to the hip water cooler talk special stock of the day or week right?

Sometimes at the SRP service we are sitting on several stocks that are trailing the market averages while they consolidate, or perhaps even correcting. Not only that, often the fundamentals are seemingly solidly in place yet the market doesn’t seem to care. Welcome to the public stock markets where people chase the latest hot IPO, such as this weeks  EYES which has a 900 million market cap and 2 million of annual sales. A company that has been around for 16 years and never made a dime of profit and has 117 million of accumulated losses. A company who had convertible bond debtholders they needed to pay off. Best way to do that is sell a sexy story and hire a sub-par underwriter at a low commission rate to sell your IPO to retail investors. Hey, it worked so we are not knocking them but we also wouldnt call this a fundamentally strong story either. That said, fundamentals don’t matter though when there is a classic Wall Street thin float IPO with a sexy story… no profits, but the story is water cooleresque man!  It’s all fun and games until the next quarterly report comes out and that formerly hot trading stock shows its true colors with actual numbers that may be a bit sobering and not so sexy no? With that said, we understand those day trader plays look tempting and often you can make a few bucks on them if you are quick, but you can also lose 15-20% of your trading dollars in 1-2 days when the sexy story wears thin.

What to do?  Avoid the temptation to jump off the wagon of your strong company just prior to that upside breakout, which you know is what will happen as soon as you sell right? A lot of the trading on a day-to-day and week to week basis on Wall Street is purely random in nature, and also 80% controlled by computer bots and pre-programmed trading movements.  One day your stock is sitting at $13.25 per share and the next morning its opening at $12.30 and there is no news and no explanation.  3 days later its back to $13.50 and you just sold out and lost money… sound familiar? A lot of that is programmed bots ripping retail shareholders off by tripping stop losses and snagging shares before the reversal.  That’s why charts by themselves never get it done, they are a tool in the box but at the end of the day the fundamentals will win out.  This is why as much as it may be water cooler talk “Cool” to buy that EYES sexy IPO and chase the gains, in the long run that type of hot stock chasing will lose money.

With many quality names going sideways while the SP 500 index and NASDAQ index climb higher, it can be frustrating…

To wit, if we can quote Investors Business Daily from their Saturday paper here is what they said:

“For three weeks, the IBD 50 has been flat even as the major indexes have made new highs…Many have stalled, hanging by a thread to their latest buy points. With the market rising, these leaders should be making progress… Instead, there are just a handful of leaders making sizable gains… While crawl is frustrating investors, the indexes edging higher with little distribution means that market risk remains acceptable”

So if you are feeling like you are missing some of those bullet trains whizzing by on the CNBC and StockTwits trending ticker lists, resist the temptation to alter your game winning longer term trading plans and know that stocks make their biggest percentile moves in very short time frames, and usually right after you give up and sell.

Over at our Premium Service, here is a list of 11 stocks from which we are likely going to drill down and grab 3-4 for Intermediate Swing plays:

EA; FIVE; BIDU; FLT; CDW; LQ; HOLI; NEWM; JAZZ; ZAYO; CTLT

Come try us out.  $649 for 12 months of service includes pre-market updates daily, market forecast updates daily, 3-6 Short to Intermediate term (days to 4 weeks) swing trades every week, Intermediate to Long Term hold positions active portfolio.  Weekend reports, Real Time Text and Email alerts, Entry and exit points and more!  We also offer $99 a month, and $249 per quarter options to sign up.  One trade can pay for a few years!

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WE HIT “KING” (KING)  THIS PAST WEEK FOR 13-14% GAINS INSIDE OF A 6 DAY HOLDING PERIOD.  $10,000 WOULD HAVE YIELDED ENOUGH PROFIT TO PAY FOR 2 YEARS OF SRP SUBSCRIPTION ALONE!  EVERY WEEK WE HAVE 3-4 NEW SWING TRADES AND MORE!

528 gains

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Weekend Report- Market Trouble Ahead or Opportunity?

A tough week for the market indices as the SP 500 dropped 3.5% and we saw the largest weekly decline since 2012. We had warned our Premium subscribers early in the week that a drop to 2000 on the SP 500 would not surprise us from the prior week 2075 close near all time highs. We have a few proprietary topping indicators and both were giving us an early warning signalto reduce exposure to the markets.

One to watch is the NYSE index, which removes the noise of ETF vehicles. This is showing atriple top breakdown right now, with room on the downside still there. Old school market watchers follow the NYSE as best representing the broader markets.  We are stock pickers for sure and can work around some of these issues, but nonetheless its important to understand the direction of institutions and right now they are net sellers. We can also deploy 3x ETF’s to short the markets or sectors and raise cash. In addition sold out sectors like Gold stocks and Energy perhaps could give rise to some killer swing positions in early 2015.

sr nyse chart 1214

What now?:

Earlier in the week at our Stockreversalspremium.com service we alerted subscribers to take profits on a few stocks before the market tumble late in the week.  We felt reducing market exposure and portfolio risk was a prudent move. We sold some of our EXAS for 22% gains while holding 1/2 for example.

The SP 500 rallied 259 points from the October lows, which back then we were  calling a typical September-October swoon. At some point the buyers get exhausted and the sellers start to get a little more control. We are also in tax selling season, we have Oil crashing, and in addition to that Hedge Funds having a horrible year and booking more losses on their books.  All of this finally culminated in a washout sell off late in the week but there could be some more downside.

A typical correction is a Fibonacci relationship to the prior rally and the low-end is a 23.6% retracement of a 259 point rally.  That would initially point to a 61 point decline which we already surpassed.  More common is a 38% to 61% retracement of that entire 259 point move.  So the next pivot level is around 1980 and there is a gap at 1994 in the SP 500 as well that seems likely to fill.  So we would keep an eye on that 1980 area as a possible bottom pivot ahead of a Santa rally.  

What we are worried about is the action in January which could be quite volatile in the first few weeks. Energy stocks are obliterated but not yet a buy as some 70% of them have breakeven operations at $55 oil, and we are at $57.  Recall how long this Gold bear market has gone one (over 3 years), so no rush to get in just yet but worth watching for a January rally bounce.

Right now the market breadth on Friday was ugly with 347 new lows on the NYSE vs only 49 new highs. Biotech stocks look and feel like a blow off top is forming near term with stocks like AGIO, BLUE, KITE and others rushing to parabolic highs.  New IPO’s in the sector are going up fast on little data, it all smells to us like 1999 internet stocks. The thing is, we love Biotech at StockReversals and cover them all the time… so we hope we are wrong.

Now this doesn’t mean all is wrong in market land folks. In fact, we noticed one of our 2013 business disruptor picks ZLTQ (Dec 2013 at $18) just hit all time highs at $29 this past week on very strong earnings recently. Zeltiq makes a fat cooling technology we wrote about a year ago as “disrupting”. BlueBird Bio which we wrote about several times on Stocktwits at $23, $34, $44 is now at $93 per share just 7 months after we told people they were “killing cancer” at $23 a share.  Kite Pharmaceuticals we discussed on Stocktwits at $33 in October is now at $54.  So there are areas working no doubt, but they tend to be focused in just a few select sectors meaning market breadth is getting thin.

We also are watching GOLD closely and would love to see a close over $1241 for us to get confirmed bullish, and we are not quite yet seeing the stocks in the precious metals sector confirming a low, but getting close.

We do have some fresh ideas and a few recent ideas repeated that are possible near term entries for Premium members depending on market action, and also for further review.  We list them with brief notes below.

BITA- Bit Auto, the Chinese auto website based financing and car information service. Big drop in share price but may form a double bottom in the $62-$63 area

AKRX-  Akorn Pharmaceuticals- This one is holding up really well in the sell off and forming a 4 month base

EPAM-  A 3 weeks tight base, this is the 3rd time it has  been on our weekend list

CDW-  Computer information/re-seller forming a nice base

VRX-  Would be a possible entry on this pullback closer to 135, but we would sell it below 131

PTRY- Pantry- 6 week breakout

SSNC- 7 week ascending base, was on a weekend list recently

LDL-  Lydall, possible 7 month base that could breakout

ZUMZ-  Retailer nearing highs, close to 5 week breakout

CNC-  Healthcare centers, new highs and in a 7 week ascending breakout

ZLTQ-  A former Business Disruptor at $18 now $29, but nice 3 month breakout

QLYS-  Also on list recently, security provider for I.T. networks nearing 5 week breakout

So there are a few names for consideration and a few of which may make our Alert swing trade positions near term at the premium service…. market willing… and if the market is not giving us a green light we will sit tight for a bit longer.

Consider joining our Premium members and smashing the market. We save you hours and hours a week of time, we alert in real time with text and email. We tell you where to enter, exit, and the profit targets on every position .We update all positions and the market every single morning 1 hour before the market opens. We are available almost 24-7 for individual E-mail to our chief strategist with quick responses. Just $99 a month or $249 a quarter or $649 a year! CLICK LOGO FOR MORE DETAILS

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Stock Of The Week- CMPR

Awesome, I tell everyone I know about your site.  Keep up the good work! Dan Anton Dec 5th 2014

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CMPR- 69.50 12/4/14

Our stock of the week profile is Cimpress International, N.V.

Formerly known as Vistaprint and recently changing their name to Cimpress, which is based in the Netherlands.

The company has always maintained a focus on the small mom and pop businesses with custom printing of business cards, brochures, and other materials at a low cost with mass production.  They are now adding or shifting to the mid to higher end customer base with a larger potential deal value per customer, and longer term upside and margins.

As it stands, their return on equity is around 48% per Investors Business Daily.  They expect a 27% year over year annual profit increase as well.  In the most recent quarter the strategic shift led to a huge earnings beat and 87% year over year profit increase.  This was largely due to some larger orders with high margins to boot.

As they head into their fiscally strongest quarter the stock could be set up for an nice first quarter run in 2015. Earnings are due out in late January for the December quarter end.

We would not be surprised to see this over $77 in early 2015

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Oh Ye of Little Faith-Weekend Report Nov 15th

This weekend we look back on our comments about Twitter and Ubiquity and look ahead to other opportunities and thoughts on the markets as well including Biotechs, Gold, and other areas of interest:

In the interim, make sure to sign up for our Free E-mail report list. We send out occasional stock ideas, quick write-ups, Business Disruptor research reports, and weekend editions via the opt in list.

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Last weekend we espoused on the short term 90 day nature (Train Wreck) of Wall Street.  Two of the samples we discussed were Twitter (TWTR) and Ubiquiti Networks (UBNT). twtrWe figured that eventually Twitter will figure out how to monetize 500 million users and that Ubiquiti is still going to triple revenues in the next three years in the wireless networking space.  So if we take a 2nd look now a week later at the charts, we see some interesting “bases” forming that look ready to turn back to the upside.  90 day memories are short it looks like, Wall Street eventually “looks ahead”.

Twitter popped up from $39 to $44 in just over 24 hours of trading this past week, and we are long at SRP. We added below $39 in fact. UBNT some of our members are still long with a stop at $27.50 looking for a rebound. A stock buyback announcement may come as well, which would likely spurt the shares back to $32-$33 in our opinion.

Some Base charts below tell the tale of the tape (Click to Enlarge)

twitter base

ubnt base

The Biotech Sector finally took a breather late in the trading week, we expect that was overdue.  Sentiment obviously varies from the pessimistic to optimistic extremes and is part of what we specialize in at StockReversals.com and StockReversalspremium.com for sure.

There are a few that we like, though we give a little pause because my sister E-mailed me on Friday about a Biotech that just went public late in the week that she bought some shares in. My sister hasn’t e-mailed me about stocks in years, and there alone is the Taxi Cab Driver top signal perhaps?  Either way, some pullbacks in quality 2014 IPO names like Concert Pharmaceuticals (CNCE) and recent IPO Coherus Bioscience (CHRS) have us interested in accumulating.

Coherus (CHRS) chrsis interesting in that it was formed in 2010 and quickly has gone from a start up to having as many as 3 Phase 3 trials underway by the 1st quarter of 2015. They went public quietly about 10 days ago at $13.50 and as much as 40% of the 6.3 million share offering was taken up (bought) by existing shareholders and insiders. The most notable being one James Healy, M.D.  We like to do our research and look for clues you know.

Under the rug we discovered that Dr. Healy, of Soffinnova Ventures,  in 2011 Jim won the IBF Risk Master Innovator Award and was named as one of the industry’s top life science investors in 2013 by Forbes Magazine. Jim is a Director on the Board of the National Venture Capital Association (NVCA).  The vast majority of his prior investments in Medical companies have been acquired including  Cellective (acquired by AstraZeneca), CoTherix (CTRX, acquired by Actelion), Durata (DRTX), Kalobios (KBIO), Movetis (MOVE, acquired by Shire), NextWave (acquired by Pfizer), Novacea (NOVC, merged with Transcept), Preglem (acquired by Gideon Richter) and Prestwick (acquired by Biovail).

So we like to follow the smart money and Dr. Healy picked up 5.75 Million worth of the IPO at $13.50, and now controls 8% of the shares in the company (32 million outstanding).  Also invested are Eli Lilly Ventures with a 10% stake and Japanese powerhouse Sankyo who are partnered with Coherus in Asia.    Coherus is formulating “Biosimilar” drugs that function much like powerhouse drugs from Amgen and Abbvie, also known as Enbrel, Humira, and Neulasta. Last year those 3 drugs combined for 14 Billion in sales in the US alone.  CHRS is planning to emulate the formulations and market them overseas at much reduced prices, somewhat like a generic version but more involved and too deep to go into discussion on here.  They have a partnership with Baxter for Europe which provides milestone payments and royalties going forward, same with Sankyo in Japan and Asia.  They retain 100% us rights to all 3 currently.  We like this one to shoot forward in the 1st part of 2015 after a POST IPO base period. We are buyers, and as of the Friday close you can buy this near the IPO price, so we are and will keep adding. The near term catalysts being the end of the post IPO quiet period and likely FDA nod for a move into Phase 3 for their version of Humira this month.

King  Digital Entertainment (KING)king killed it this week going from 13.70 to 16.07 for a sweet 17% rally for SRP members. We were buying this stock over a week ago under 13.80 after earnings because the value was just too good to ignore. The company has diversifed outside of Candy Crush Saga, they add one new game every 90 days, they do amazing consumer gaming research before further developing games.  They send money back to shareholders via huge dividend payments and or buybacks, and are gushing cash and cash flow. PE ratio was 6 when we got long. I mean this is why we are in the market, looking to exploit opportunities right?

Gold is trying to form a completed primary wave 5 bottom from the 2011 highs of $1923 per ounce.  A 50% retracement of the entire bull cycle comes in around $1120-$1130.  We hit the $1130 area and have bounced off. There is strong resistance around $1190 per ounce.  So key support is 1130 and resistance at 1190 for Gold right now.

Some stocks that have our interest and a few of which likely hit the SRP swing trade positions early in the week:

NXP; VRX;  BITA;  ATHM; JAZZ; EA; AKAM ; ATHM; NXP; BYI; CRTO; NTES; KFRC

There are 13 symbols for you that are meeting criteria we look at for opportunities to get long.  We cull them down to 3-6 usually and then alert 3-4 of them early in the week at the SRP service.  Consider joining us if you are not already a member.  A nice 16% pop in KING this past week was a highlight for SRP members.

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