A huge market short cut that many people take is buying up the 52 week high list. Well versed investors often scoff at such behavior as being “sheepish” because it requires zero thinking. For the intelligent investor, there is nothing like buying a beaten old stock, like FTK, when it’s nothing and watching it rise to grandeur. However, I will be the first to tell you, those are rare occurrences.
For the most part, price action is correct, until things get too overheated or over-frozen. If you knew absolutely nothing about stocks and wanted one strategy to study, buying stocks near their 52 week highs is a great start. After all, big winners live on that list. Apple was on it at $50 and again at $100, then $200, then $300 and now north of $420. Get my drift?
Naturally the danger to chasing momentum is timing an exact top, like NFLX north of $300. However, you can simply put 10-15% stop losses underneath some of these high fliers and try to mitigate risk by buying a basket, as opposed to just one or two.
Here are some stocks that caught my eye that are within 5% of their 52 week highs, with market caps above $100 million–sorted by industry.
Chinese Burritos
SNP
HNP
Textiles
PVH
CRI
OXM
Steel & Iron
ROCK
Sporting Goods
SWHC
RGR
HIBB
POOL
Specialty Chemicals
SXT
NEU
FUL
WPZ
Security and Protection Services
FBHS
Restaurants
SBUX
YUM
PNRA
MCD
PZZA
EAT
CMG
CBRL
Residential Construction
TOL
LEN
DHI
Railroads
UNP
WAB
NSC
KSU
CP
ARII
Processed and Packaged Goods
THS
MJN
SJM
MKC
LNCE
GIS
CAG
BGS
Personal Products
ULTA
PG
KMB
EL
Paper and Paper Products
IP
KS
TIN
NP
BKI
Oil & Gas Equipment and Services
MIND
Oil and Gas Drilling Exploration
PACD
CIE
MWE
CLR
Medical Instruments and Supplies
ELGX
CMN
SONO
OSUR
ICUI
Medical Appliances and Equipment
ZOLL
VAR
SYNO
ISRG
ALGN
Internet Information Providers
RATE
HSTM
INSP
Industrial Equipment Wholesale
MSM
GWW
DXPE
ARG
AIT
Independent Oil and Gas
VOC
SDT
SUG
STR
EPD
Home Improvement Stores
HD
LOW
Home Furnishing and Fixtures
MFRM
SCSS
Home Furnishing Stores
PIR
Healthcare Plans
WCG
UNH
MDF
HUM
HS
HNT
CNC
AET
Grocery Stores
WFM
CASY
Machine Tools and Accessories
ROLL
General Building Materials
VAL
AWI
Food Wholesale
CORE
Food-Major Diversified
LANC
KFT
HNZ
Farm Products
CVGW
CALM
Entertainment Diversified
MSG
TWX
NWSA
Electronics Wholesale
VOXX
Electronics Equipment
GRMN
GNRC
Drug Manufacturers
VRUS
SNTS
MDCO
CBST
AGN
SHPGY
ADLR
SPPI
PFE
MRK
LLY
JNJ
GSK
GILD
CELG
BMY
BiiB
AMGN
ABT
Diversified Machinery
CFX
SHFL
PLL
MIDD
Diversified Electronics
AAPL
Diversified Communication Services
EQIX
COR
CCOI
NSR
CCI
AMT
Discount Stores
DG
WMT
NDN
FRED
DLTR
Department Stores
M
TJX
CPWM
Defense/Aerospace
LMT
TDG
GR
BEAV
Credit Services
NNI
GCA
EFX
DFS
ADS
Confectioners
HSY
Business Services
VRSK
WXS
V
UNF
TSS
SNX
INWK
HPY
CTAS
Biotech
CLVS
EXAS
INHX
VPHM
REGN
ONXX
NBIX
MITI
MDVN
HALO
ELN
CBM
ARIA
Beverages-Soft Drinks
MNST
KOF
Auto Parts Stores
ORLY
AZO
AAP
Auto Parts
SMP
LKQX
GPC
CLC
Auto Dealerships
SAH
GPI
CRMT
CPRT
ABG
Apparel Stores
FL
BEBE
Application Software
MSFT
SAAS
NUAN
INTU
AMSWA
Ag Chemicals
TNH
MON
AVD
After studying this list, I want you to find out why these stocks are hitting new highs. Is there a theme here? I see it. Let’s face it, the super-trend to come, if it’s coming at all, will be found by studying this list. Once you get a grasp on why these stocks and sectors are being bought, get yourself a powerful screener, like the one found inside of The PPT, and compare then contrast the stocks on this list with others in the same industry, with the hopes of finding under the radar winners.
Most of you bird brained jelly mixers will opt to drink yourselves into a coma tonight. For the industrious men and women out there: get to work!
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Why is it in reverse alphabetical order?
Are you looking to render us nonplussed?
_______
You gotta love Chinese Buritos, cause they put BBQ Pork in it… lol
Wish I could look at this and understand what the supertrend is, but I’m not seeing it.
Biotech/drugs looks strong though.
It doesn’t matter what the next super-trend is. BUT, study these names and other strong ones, figure out which you think have the best potential(new products, comp adv., etc), strongest financial statements (EPS, ROE, revenue increasing, institutional support, etc.), and good technical setups (ie: 52 weekd highs) and then buy them.
Keep your losses small and pile your money into the winners. Bada Bing Bada Boom, as the dirty Italians would say.
Good advice
IBD kinda beat ya to it..
There is nothing proprietary about 52 week high lists.
Thank you.
Hey, this Chinese BBQ tastes like cat!
Lets get a pullback and then look to enter some of these
The supertrend looks like a war is coming and the spare capacity in the economy will go to work
Moonshine me some banana brandy son. I thought this would be the time for suckling the banana-flavors breast of tune-cephilic. Cut my cord, and I’ll give you a DeVille with Pleather exterior.
CVR Energy adopts poison pill with 15% trigger
http://www.marketwatch.com/story/cvr-energy-adopts-poison-pill-with-15-trigger-2012-01-14
Thinking about shorting AAPL right here…
Looks to me like the rally monkeys will soon be fleeced. js
I feel like names such as $JEC and $FLR will be huge participants in the super-trend I visualize emerging. $F and $GM too. They fit with many I see here. Nice work, Fly.
Medical supplies. Biotech. Pharma. Etc.
Romney overturns obamacare?
All Romney will overturn is the chamber pot in the rooming house he is janitoring for.
He has as much chance of beating Obama as Rick “the Prick” Perry does.
In a “rigged game” world, perhaps.
The overturned chamber pot would win in the real one.
________
“Jelly mixers”? Damn, you’re funny.
The key is to read William O’Neil How To Make Money… over and over and over and over and over in all stages of all markets but never subscribe to iBD. Supplement with iBC.
BTW all stocks mentioned above are dogshit. Lookout below, we tankin, Titanic style (NO ITALY).
Plenty of research out there to support a strategy buying 52 week highs.
http://mingliu.info/Documents/52_week_high_Aug2010.pdf
http://www.fma.org/Denver/Papers/FMA_Momentum.pdf
http://www.iijournals.com/doi/abs/10.3905/joi.2008.707218
Thanks for that additional research!
Merci M. LeFly.
Alfie?
That’s some great research stuff’s
Woodshedder 🙂
NP. There is even more…
I bet LOLZ 🙂
I own none of those. Maybe that’s what they all have in common! That, and they are all Cramer favs.
Where’s the music? I enjoy the music while reading the post and responses.
ULTA – cosmetics retail chain. Huge margins. No one ever went broke underestimating the intelligence or vanity of the american female
CASY – c-store chain in the midwest. In store kitchens (donuts / pizza ie; crap)drive the margins. Primarily in small towns / suburbs.
Know both of them well – customers of mine
Casey’s are holes in the wall dirtpots.
What do you sell, fixtures?
_______
True story – I have cousin who manages a Casey’s in bumfuck MO.
Security Software that manages cameras, intrusion, access control, POS – all things Loss Prevention
That’s a lot of typing!
Does the PPT cover the Canadian market?
not much commodities..
And no miners. Hmmm
Something about this reminds me of Gio, the Hawaiian Trader. I hope he is well.
many picks look like Buffet would buy lol
I remember Gio talking about buying at the 52 weeks highs. He had some awesome picks. Green Mountain Coffee comes to mind and there were others that I can’t think of right now.
I asked one of the wealthiest self-made men I have ever met (net worth in the 10 figures) The secret to success.
He said, “basically, people are lazy”
It is that simple.
If you want to sell to the masses, make it simple and easy.
No doubt. But you can’t be lazy yourself. And there lies the problem.
I love Amazon because when I go to buy something there, it automatically tells me what else I need to get to go with the item I just bought.
For instance, I bought a cast iron teapot (for a fourth of the price at Teavana), and no sooner had I added it to my cart, up pops the exact items I needed to go with it, and also what other people who bought that item were buying, and who was selling it cheaper even. It was great. I bought the other stuff that I didn’t even know I needed, too.
Hey, I don’t see Amazon on that 52 week high list. Unless I missed it.
Essential goods and services?
UPS isn’t on the list. It’s close, though.
I didnt realize traders for judged on form. All this time, I thought only performance mattered. Count me in with the simpletons who buy momentum stocks when the market is going up. So easy, a caveman can do it. I could never rub elbows with the distunguished gentlemen who boast of buying beaten down dog crap and making diddly during rallies.
Great advice, Fly….but, a losing strategy. Hah.
Fly – no interest in participating in the SOPA web strike? Not even till 9am tomorrow?
no idea what sopa is
Here, SOPA and PIPA. WIKI has a blackout going on now.
http://abcnews.go.com/Technology/wikipedia-blackout-websites-wikipedia-reddit-dark-wednesday-protest/story?id=15373251
Check out this post by M David, fellow iBC’er
http://www.bodybuildingsecretslive.com/current-health-news/southern-cooking-leads-to-type-2-diabetes/
I endorse it 100%.
Best diet for everyone for glucose regulation and building good physical fitness and muscle can be found at http://www.brothersofiron.com/showthread.php?t=2239&highlight=diatia
There are cookbooks out there that revamp those southern recipes and make them healthier and just as tasty.
Looks like anticipation of a return to the consumer is king via buying power restored from a revitalized king dollar as the USA becomes the safe haven once again and dollars are in short supply (how ironic)… Clam, wherefore art thou?
All consumer oriented as well as distributors, wholesalers, producers, transporters and the industrials that provide the needed infrastructure to fulfill their needs will benefit.
Credit @GSElevator:
#1:Fuck that. When I was an analyst, I had to eat an entire ‘wasabi roll’. What we called team building, you faggots call bullying.
#1: Sober girls are the worst. So are really drunk ones… The sweet spot is 4 white wines and a Zanny.
#1: I asked him what his life goal is, and he said “to make the obituary in The Economist.”
#2: Great answer. Hired.
#1: The only reason I have a home phone is so I can find my cell phone.
#2: Our maid does that.
@Blind Read Ant – those are priceles; thanks for passing along. My favorite – ” a chick asked me what i would do with $10 million. I said i’d wonder where the rest of my money went.”
Play On!
this is blasphemy.
If I were Nefarious Fly I would write this post in order to farm for answers to cut down on research time, however, the multitude of responses written thus far offer a pound of feathers opposite the pound of information; we find ourselves betwixt and between. In an effort to perform “charity work” like the 2012 vintage Fly and bring gravity to the situation, I’ll present some of my findings.
First, consider that 16 of the 30 Dow components are trading within 5% of their 52-wk high and all but 4 of the 16 have market caps greater than $100B. The list is the following, in order of distance from 52-wk high: HD,PFE,KFT,MRK,MCD,T,PG,XOM,MSFT,WMT,VZ,JNJ,INTC,CVX,TRV, and BA. From that list the top earners by eps are CVX and XOM at $13.49 and $8.30. Those two also have the lowest P/E ratios of the 16! Oil and Gas stocks are relatively cheap as reflected in the DJIA. The top 10 priced stocks of the 16 all have P/E ratios above 15. MSFT, WMT, XOM, INTC, and CVX all have P/Es below 11.
Approximately half of the total list of posted stocks pay dividends. By in large, stocks that are being bid up right now reflect defensive names, both in the cyclical and literal senses.
MATERIALS: The focus is on O&G pipelines and integrated O&G because of the divergence between WTI-Brent as well as the current infrastructure of oil pipelines within the US and the ability to transport oil and its refined products throughout the land. Increased flows provide steady cash flows to the pipelines. From a value perspective these can be considered defensive plays because of the ability to perform DCF calcs with a lower margin of safety. The upstream exploration companies have done quite well in the US with all of the shale regions too. Also incredibly cheap natty allows the chemical companies to produce goods at higher margins. This also includes fertilizer and agriculture corporations. Metals are not being bid now. Inventories are high at steel mills and met coal production is being cut.
CONSUMER GOODS: The stocks soaring here are consumer staples, personal products, processed and packaged goods, soft drinks, and major food companies all of which are attributable to a cost-conscious cautious consumer. Recreational goods, business equipment, electronic equipment, appliances, and office goods stocks are out of favor. The services sector reveals more clues about this sector.
FINANCIALS: REITs and credit services are being bid while mostly everything else isn’t. REITs are taking advantage of the growth in renters and their rental fees which are outpacing m/m and y/y home sales prices. E-commerce has been a huge source of growth at the consumer level because of taxes, gas prices, and ease of use among other things. This benefits the credits service companies. Non-revolving consumer credit rose at a massive rate in November clocking in at a preliminary +10.7% y/y annualized, benefiting credit card companies. Revolving credit was also very high at +8.5%.
I’ve got other things to do, so to expedite this comment here’s some notes:
HEALTHCARE: 24% of the list of 198 are healthcare. Healthcare is only 8.9% of the SP500. Strengths are Healthcare plans, drug manufacturers, and medical instruments. All are defensive in a low growth economy. Obama.
INDUSTRIAL GOODS: Diversified machinery, aerospace, defense, O&G infrastructure build-out, and some residential construction are strong. Fabrication, farming, and other construction are not favored.
TECH: 7% of the list of 198 are tech. Tech makes up 15% of the SP500. The Nasdaq is the top performing US market. Communication and security are strong.
SERVICES: 30% of the list of 198 are services. They make up 20% of the SP500. QSRs, industrial equipment rental/wholesale, drug stores, discount stores, grocery stores, department stores, business services (e-commerce stuff), auto parts, and auto dealerships are strong. Low interest rates help autos along with their refresh cycle. Everything else are essentials on the lower end of the consumer scale. Not many results in electronics, gaming, airlines, or casinos. Mostly cost-conscious crap aside from the iphone, smartphones, and tablets of course.
UTILITIES: Have been strong. Good divis for the value people and somewhat predictable cash flows. Low natty helps the gas fired guys.
I’m done for now. Perhaps I’ll piece together some of this info more tomorrow into macro thoughts like inflation, the USD, and global growth but for now look how investors are interpreting the US consumer and investor via the current equity prices.
one word Inflationary
Thank you for your insights, Le Fly!
Crack spreads up over 7% this morning!