Hey everyone. Here's guest blogger Jeff Mishlove with his contest picks for today. As we said, he'll be posting every day this week with stocks for each day. Here he is: If you followed my recommendations for stocks to purchase last Friday, then you can appreciate that the strategy I use (short squeeze potential combined with earnings announcements and volatility) is designed to detect the big movers. I only recommended four stocks for Friday.
Yet, one of them, Lee Enterprises , was the second biggest loser among all eligible contest stocks. It lost 15.89% from Friday’s close to Monday’s close. And another, Gentex Corp , was the second biggest gainer among the 2800 eligible stocks for the Portfolio Challenge. It gained 14.62%.
(And, as I mentioned in yesterday’s blog, another one of my four picks, NVR, Inc. , really should have been recommended as a buy for Thursday – when it did very well – not Friday.)
In order to select my recommendations for purchase on Tuesday, I had to sift through more than 135 eligible stocks making earnings announcements. Some double and triple checking was also necessary to avoid the type of error that occurred with NVR. Without further ado, I will list my five recommendations, in order of preference:
LifeCell Corporation engages in the development and marketing of tissue based products. The shares dropped in price precipitously last November, based on lackluster sales of the company’s core products. The stock is now down more than 22% from its 52- week high. Short sellers control more than 22% of the stock float. A strong earnings report could send the stock soaring.
ANADIGICS, Inc. , provides integrated circuits for broadband communications. The stock is currently trading very close to its five-year high. Short sellers control over 23% of the stock float. There have been a number of positive news announcements lately. A good earnings report could send the short sellers to China, where the company is planning to build a new wafer fabrication facility.
American Commercial Lines is a marine transportation company. It has dropped 20% from the 52-week high that it attained just last February. Short sellers control over 15% of the stock float. While 91% of the stock is held by institutions, none of them yet seem to be the hotshot hedge funds. Perhaps, that will change with a good earnings report.
Overseas Shipholding Group , engages in the ocean transportation of petroleum products. It is in an industry that has been subject to many rumors concerning possible merger and acquisitions. The stock is trading within 1% of its all time high. Short sellers control over 11% of the stock float. A strong earnings report will send them running for the lifeboats.
Symyx Technologies, Inc. is an exotic, high-tech company engaged in the development of advanced research technologies in a variety of fields. The stock has been beaten down and is nearly 70% below its 52-week high. Over 7% of the stock is controlled by short sellers. But, with its array of unusual products, a positive earnings surprise does not seem unreasonable to me. It has happened before with explosive, single-day results for the stock.
These are my educated guesses. We will learn tomorrow whether or not the market agrees with me.
Jeffrey Mishlove, PhD, is founder of www.forecastingsystems.com. He received his doctoral diploma in “parapsychology” from the University of California, Berkeley, in 1980. He also holds a master of criminology degree from the University of California, Berkeley. He is a registered commodity trading advisor.
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