Swimmer's secret smart money indicators sliped a little even though the pre-market looks good. It's not necessarily a down day, but a good time to be cautious. On the technical side:
The Russell-2000 index gapped down on Tuesday and may have failed last week’s breakout. It’s sitting right in the middle of no man’s land after the close, between obvious support and resistance levels.
CPSL, one of Swimmer's recommendation, went up 200% in last 4 sessions from $3.5 to $10.45. Just last session alone it jumped 32%. While in long term it will keeping going up. But in short term, it's overbought.
I am scared, so for new commers, don't buy it now, waiting for a better entry point. I will work hard to find stocks like this so you have plenty of supply.
Similarly, I exercise caution for PTR and ZVUE.
DSCO is a small Biotechnology company, I noticed the insider activity a long time ago. Perhaps I should mention it earlier, I was lazy, but it has some interesting features I would like to discuss a little more later.
Happy trading,
Swimmer
Wednesday, September 26, 2007
Market Overview and Picks
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3 comments:
Swimmer, congrats on some of your great picks.
As to CPSL, can you give me a correct current and next year EPS? On yahoo finance eps is over $4 this year (no idea what it is projected for next). However, IBD gives CPSL an awful rating (especially fundamentally). How can this be if some stock sells for $10 and earns $4??? Am I missing something? Is CPSL not greatly undervalued despite its 250% run in a few days?
Finally, what price target would you give CPSL next 12 months based on your dd and do you expect some pullback shortly as being a good entry?
Thanks and keep up the great work on this blog,
Mike
Swimmer, EPS looks screwy. It is different depending on where you look. Yahoo finance has eps of $4 for this year but way less on other sites. What is going on here?
http://www.smartmoney.com/eqsnaps/index.cfm?story=earningsForecast&symbol=CPSL
mike, CPSL is a very thinly followed stock, not that many analysts follow it. But often time these stocks give you the best return. I believe CPSL got hit when bears believed US would head for a recession. All commodity/metal stocks because they figure if US goes "R" China will go with it, nobody needs steel any more, which is not the case. Either EPS is $2 or $4, it does not matter, even it's $1, it is still worth $15 stock at the minimum. Again, the thinly followed stock does not have many analysts, so the earning forecasting is usually off, but not that far.
Enjoy,
Swimmer
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