Resiliency continues...
Thursday, February 8, 2007 at 11:21PM We definitely had some resilient action going on today. There's just not enough force to knock this market down, especially DJIM stocks. In any case, we feel that a big market move is in the cards to get us out of this range bound trading environment. At this point, it's almost pointless to speculate which way the market wants to go. The only thing we can do is to be prepared one way or the other. Fortunately the indecision of the market isn't deterring some movers from the small cap land. Here are some few worth noting...
EML, what else are you gonna talk about first? lol Again, this one followed through very nicely and we added some. When it comes to an earning play like this one, it's very hard to say where the initial run-up will end and stop. What we do know, however, is that the first pullback has to be bought aggressively. How high can the initial run-up can go? Your guess is as good as ours and we just have to take it day by day.
EDU HMIN, in the case of EDU, yesterday in the forum we said around $40.50 this is being walked up to the offering price..Well..well, the pricing for the secondary was announced tonight at $41.50/shr. For EDU, that's heck of a pricing. We think the recent rise in price in conjunction with this pricing is the fact there's lots of institutional demand for this share offer. This one is definitely interesting as 7 million shares at 40+ bucks isn't chump change for institutions. Basically, we like this one again(what else is new), now that the cloud is lifted. HMIN, simply broke out! We bought this breakout as mentioned in the Forum after noting on it and we are looking for follow throughs. Again, at this stage either take the points on moves and wait for a pullback or just stick through the tough days cause it just keeps going higher. You should know how it works by now.
VE, this euro has been a nice steady performer from 68's and it's definitely not a small cap..lol. Tonight we noticed its been upgraded to a buy by Dresdner in Europe. Looks like a $77 area target. Analysts at Dresdner Kleinwort upgrade Veolia Environnement SA from "hold" to "buy." The target price has been raised from E48 to E60. In a research note published this morning, the analysts mention that the company secured extra revenues of about €1.5 billion per annum from contract wins and acquisitions in 2006. Veolia Environnement is poised to increasingly benefit from its maturing contracts, the analysts believe. These contracts offer visibility into cash flows, which the company can reinvest to maintain above-average profit growth, Dresdner Kleinwort adds. Veolia Environnement has limited commodity exposure, the analysts add.
GLDN, talk about resiliency!!. Just incredible $4 dollar move from 9ema levels in one day. If you're reading the Journal, Forum..looking at charts you are up to speed and probably making nice trades in this stock. Believe it or not, this finished 4 cents off a NCH after yesterdays dismal day. Will it bust out soon or will this become a visit to a potential wall?. Give us a good Naz and this baby will go higher!
MFW, AVZA had nice days and finished right up there at the highs and we were adding to both along the way.
MDCI, last night we said the action was better than the earnings. Today, we can only say the action was worse than the earning indicates. A few things...yesterdays action, especially the close was probably toooo ' good and we probably should have exited the last 10 minutes when the stock had a final big stick up. Unfortunately, the action by noon today showed we should leave for the time being. Something might have been said at the CC after the close and for us it's always better to leave and ask questions later. It also could have been a D grade, likely on valuation. We don't care much for these as we've seen plenty of stocks shake these off quickly. We think this one will, maybe as quickly as tomorrow on split day and we will aggressively buy back to add to our original starter.
CGX, we added today to this name as the action was much better than what you saw in MDCI. An almost identical day to MDCI yesterday and today this one showed it might be the better of the two.
SSRX, this one is actually a Chinese biotech IPO from yesterday. Its debut action was not impressive but today's action felt much better. This is a profitable co. as well and we bought a starter position in this one. There are lots of IPO's the last few days, we're dipping here for a start around $16.
SYNL, thin stock seem to rule these days. Earning came out and it didn't take much for this one to move. We are keeping a close eye on this one to see if there's any follow through. We have some thoughts on it in the Forum, we are looking for the angles (eth) here more than the earnings to play it in the future.