Sykes: Early Week Contest Picks
Senior Editor, CNBC
Hey folks. Guest blogger Timothy Sykes is back with his contest picks for the early week. Here he goes. Great Monday afternoon to everyone! Just got back from Orlando and I’m happy to see the markets moving steadily higher. Even though I’m primarily a short seller, I like to short into strength and it seems like we will have some or possibly much more of this type of action in the weeks ahead. Let’s get to some picks; we must all remember, it’s very easy to look like a genius in a rising market…
(In no specific order)
LHCG’s beautifully rising stock chart made it a featured stock on our “How to Win” show a few weeks ago. Well, the chart isn’t so perfect any more as the stock has fallen from $33 to $26 on some heavy volume. Either somebody knows something about earnings, or we’re due for a bounce. This is even speculative for this contest, but that’s why I love it! I’m guessing a 30% chance of a large move higher.
AMKR’s chart, steadily rising earnings’ estimates, and definitively bullish investor sentiment are all perfect going into earnings. A large pop is less likely, but still a possibility. In charts I trust. I’m guessing a 25% chance of a large move higher.
BBW, like TUP is a boring company, yet these types of companies seem to be all the rage these days. Unlike TUP, BBW’s chart is boring, too, but it has a big believer in your friendly local billionaire, Stevie Cohen of SAC Capital. Stevie sure was right about BIDU, and that helped me make a few new friends so I’ll rely on his master stock picking skills once again to make this my #1 play for the week. I’m guessing a 50% probability of a large move higher.
GYI used to be an incredible performer, but the stock has fallen on tough times lately, dropping from $90 to $50. Their business is still pretty solid and expectations are waaaaaaay down, so I like the odds here for a move higher and I’ll make it my #2 pick for this round. I’m guessing a 40% chance of a large move higher.
APKT was a nice little IPO a few months ago, but like ISLN last week, the chart has fallen off dramatically. ISLN bombed on earnings, ruining my otherwise perfect picks form late last week but I’m still not giving up on these “Ugly Chart plays” just yet. Another large drop and I promise to have learned my lesson, but there’s still a chance of it popping so let’s roll the dice. I’m guessing a 20% chance of a large move higher. Any risk takers out there?
Timothy Sykes is a hedge fund manager, star of the reality show Wall Street Warriors, and author of the upcoming book, “An American Hedge Fund” He can be reached at www.timothysykes.com.
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