I mentioned possible 52 week squeezes in a post last night, and I stand behind that thesis. With the market trading flat with low volume, and short pullbacks, I want to buy stocks with momentum that are close to breaking through their 52 week high. These aren’t just any stocks, these are stocks with quarterly earnings growth of over 10%, quarterly revenue growth of over 20%, market caps over $1 billion, ROE over 10%, and short interest over 10%. You can find the screen in The PPT here.
RGR fell off the list, but I am still bullish on gun stocks, even if the cowards are taking profits and running scared. Two of the names on the list, IMAX and LGF, are entertainment stocks, with all the snow and storms this winter, I have to think that a lot of people were going to the movies and buying/renting. This is just an off shot thought to help my bullish thesis, but LGF does have really good March seasonality.
Speaking of seasonality, I bought two names on this list based on seasonality, CVI and LL. I also, based on seasonality, covered my short and bought LULU. (The Dr is having an aneurysm as he reads this). You can see all of their seasonality in my post here. I have really been providing you with too much content from The PPT, but it’s about to evolve into something that will make this data look sophomoric. One other stock I like, based on seasonality and fundamental analysis, is UA, and I added to my position today.
Top picks: CVI LULU LL UA LGF IMAX RGR UA
Charts here
