Mishlove: Contest Picks For Wednesday
Senior Editor, CNBC
Hey folks. We have guest blogger Jeff Mishlove with his contest stock picks for today. Jeff's been putting a lot of work into this--especially with earnings season upon on--but as he says, he really enjoys the process--and we really appreciate having him. Remember, as Jeff says, he can be right on a stock, or "not so right." It's an imperfect science, even for the best of analysts. There's a lot to factor in, but that's just what Jeff's doing for us. Here's his post:
The stocks I recommended for purchase Monday did well, but not great – as I had hoped. My first two choices, AK Steel Holding Corporation and Anixter International were up 4.17% and 4.5% respectively. Jet Blue Airways was down 2.55% on Tuesday. And, my final recommendation, Euronet Worldwide , it seems did not release its earnings data until after the market closed on Tuesday. All in all, the one-day results continue to provide support for the methodology I am continuing to employ.
As a reminder, I use the following three factors in making these selections: (1) Earnings reports due out (although the precise timing, as we see once again, can be surprisingly tricky). (2) Short squeeze potential as evidenced by lots of short selling in the face of strong momentum. And, (3) a history of large, single-day price jumps.
In making my recommendations for stocks to buy on Wednesday, I had to sift and winnow through nearly 400 different companies that are scheduled to make earnings announcements. My final four selections follow with my favorite stocks at the top of the list:
Align Technology , a manufacturer of medical and orthodontic appliances, is currently trading very close to its two year high. Short sellers now control over 15% of the stock float. If there is a strong, positive earnings announcement, their teeth will be chattering.
SunPower Corporation , as the name suggests, is in the burgeoning solar energy business. The stock is hot. It is trading very close to its all-time high. And, short sellers now control an amazing 72% of the stock float. If there is good earnings news, they will get burnt.
W. R. Grace and Company . About fifteen years ago, at the classic, old Oriental Hotel in Bangkok, Thailand, I met the Peter Grace, the CEO of this conglomerate, who was also the grandson of the founder. He was a very elegant man and we had a fascinating conversation about parapsychology and metaphysics. Later he invited me to meet with his president at the corporate offices in New York. I tried to interest them in remote viewing research. However, nothing came of our meetings. And the company is now in bankruptcy. But, the stock is trading at an all time high. And, short sellers control over 15% of the stock float. Peter Grace died some years ago, but I suspect his ghost lives on. Like a ghost, a strong earnings announcement will scare the short sellers.
Rock-Tenn manufactures packaging products and paperboard. The stock is virtually at an all time high right now. Short sellers control 10% of the stock float. If the earnings report is good, they’ll need to close their positions by buying. That will get them thinking outside of the box.
Jeffrey Mishlove is creator of www.forecastingsystems.com. He is past-vice-president of the Association for Humanistic Psychology and is the recipient of the 2001 Pathfinder Award from that association for his outstanding contributions to the understanding of human consciousness.
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