Hey there. Here's guest blogger Timothy Sykes is back with his contest picks for the week. As he says, these are his early week picks--and will have more on Wednesday. Here he is:
I don’t know about anybody else, but I look forward to Mondays. This will all change over the next few years when trading becomes 24/7, but for now Mondays are my favorite day of the week.
On our last “How to Win” show, I picked 10 stocks with the help of some controversial models. Some of these stocks were priced in the $100 range so many people wouldn’t even consider playing them. Instead, contestants seemingly love to play horrifically managed companies like REV. Boooooooring!!! Sure, the price might jump on any given day and you’ll be rewarded, but the chances of predicting exactly when the large move will occur are slim and more importantly, tens of thousands, if not hundreds of thousands of other people, are playing the exact same stocks. There’s no way to get ahead!
In this competition, the price of the stock and the size of the company make no difference; stock price volatility is the only thing that matters. When I picked ISRG, a $125 stock, the legendary Dr. Ari Kiev (another guest on "How To Win") wasn’t convinced it was a good pick. I definitely didn’t convince him, but the subsequent price action certainly did since it jumped 10% after reporting great earnings to make a new all-time high. That’s a big move, and it was predictable.
Let’s get to this week’s picks. I’m still not going to give you all the necessary information to play these stocks, namely the exact date on which these companies report earnings, but since there are so many earnings plays this week, I’ve divided them into “Early Week Picks”, listed below, and “Late Week Picks”, which I intend to post on Wednesday.