Mishlove: Contest Picks For Thursday
Senior Editor, CNBC
Hey everyone. Here's guest blogger Jeff Mishlove's contest picks for today: Now that Wednesday’s very exciting market has closed, I see that – once again – my recommendations for Tuesday purchases turned out to be quite volatile. Life Cell Corporation was up 4.99%. Anadigics was down 10.72%. American Commercial Lines was down 5.32%. Overseas Shipholding Group was up by 8.55%. The only recommendation with less than a 4% price movement was Symyx Technologies. It dropped by 0.84% on Wednesday.
Since, it is not possible for me to know in advance whether the earnings news will exceed expectations, my method can generate both big gains and big losses. In the world of real trading, this can be extremely useful information. But, for purposes of the contest, we are only interested in upside movement.
For Thursday, once again, I sifted through over 250 companies that are making earnings announcements. Here are my six top picks:
NBTY, Inc. , is a nutritional supplements company, offering over 22,000 products. The stock is trading with 10% of its all-time high. The stock has appreciated in value over 130% in the past year. Skeptical short sellers control over 9% of the stock float. If the earnings report turns out very positive, they’ll need some vitamins themselves.
FLIR Systems, Inc. , specializes in thermal imaging and infrared cameras. The stock is trading at an all-time high, and has appreciated almost 50% in the last year. Skeptical short sellers don’t think it can keep this up. They control 8.5% of the stock float. You could use one of those infrared cameras to watch their body temperatures rise if the earnings report turns out positive.
ON Semiconductor Corpis based in Phoenix, Arizona. The stock is currently down about 5% from its five-year high. Even though it is attractively price, with a forward P/E ratio of about 10, short sellers control over 24% of the stock float.
Varian, Inc. is also in the semiconductor business. It is trading very close to its all-time high. It is a more expensive stock than ONNN with a forward P/E ratio of about 20. And, short sellers control 11% of the stock float.
First Marblehead Corporation is an interesting company because its stock recently dropped about 20% due to skepticism concerning its ability to continue servicing lucrative student loans. The company denies that there is a problem. If the market can be convinced, we might see a sharp bounce back up. Short sellers control over 17% of the stock float.
Hittite Microwave Corp , a manufacturer, has an interesting history of large, single-day price jumps. Jumpy short sellers control over 13% of the stock float. Let’s see if they jump on Friday.
Jeffrey Mishlove is founder of www.forecastingsystems.com. For fifteen years, he hosted the weekly, national public television series Thinking Allowed. He currently serves as president of the nonprofit Intuition Network.
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