I hate buying stocks that have already made big moves to the upside. More often than not, however, the stocks near new highs continue to make new highs. Momentum begets momentum. Things happen for a reason. People are single at 40 for a reason, just like stocks underperform for a reason. Most of the time, they are shit. However, on occasion, a keen eye can find the proverbial “diamond in the rough” and buy the next one to go early.
I’ve compiled a list of stocks, with market caps above $5 billion, that are up less than 3% year to date.
Let’s review them, shall we?
EA is interesting down here. I know video game sales have been sluggish. But EA was supposed to be killing it on the mobile side too. That is definitely a stock worth monitoring. I don’t have much interest in any of those names, especially chinese burritos, coal, utilities and gold. Although I think gold goes higher, the fucking mining stocks have not correlated well with the market over the past 12 months. Yeah, I see a rail on there too, likely weak due to coal. MCD is at the bottom, busy poisoning kids with their fucking “Happy Meals.” No interest.
Next.
This list is littered with defensive names. None of these stocks are doing terrible, year to date, just lackluster. Most of them pay big dividends, so that makes up for some of the underperformance. My favorites on that list are DPS, GOOG and SWN. I like beverages in a strong economy. There are strong correlations between beverage consumption and strong national GDP. GOOG is GOOG and SWN will rip tits if natural gas bottoms.
Last but not least.
MCHP, SNDK, TCK and JCP are interesting. SNDK is enjoying a tailwind due to weaker Yen. Plus, flash memory is booming. MCHP is your classic semiconductor company that tends to do well under the radar, when semis are strong. JCP is interesting with the Apple guy leading the company. And TCK will run if basic materials catch a bid. For the most part, basic materials have been laggards, mostly thanks to coal. Should coal bottom, particularly met coal prices, I like JOY and WLT.
Bottom line: In the big cap space, there aren’t a lot of names on sale. In order to get real bargains, I suspect there is a lot more to choose from in the smaller cap space.
UPDATE: I sold out of EXK
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GTXI just getting started on a move off the bottom, speaking of laggards.
fig
screw the laggards.dltr gonna do the hundo pimp walk soon. clne,go look at the 35 strike for sept….sum ting uuup.
“It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower.” – William O’Neil
AAPL getting away from $600
within gaming circles, EA is known as the devil with a track record of several games with great potential that they’ve murdered
just buy $AAPL people…BUY $AAPL!!
GS is my laggard play . If I’m knocking
it out of the park then it is safe to assume
that Slacks is killing it .
Thanks for YELP. too much of profit not to book it.
Picked up YELP yesterday. Up 13% and holding. Thanks!
Gracias Senor LeFly (will book mark). Have to return to God’s work (aka errands).