Last Week’s Picks:
Our picks did poorly last week, ending a good run of wins that was likely to come to an end at some stage. However, it was a disappointing performance considering how well stocks performed as a whole. Basic materials led the way as crude oil futures held above $51. Meanwhile, conglomerates were the only sector to finish in the red.
This Week’s Stock Picks:
Corporate earnings will guide investors next week with around 15 companies reporting numbers on Tuesday and 46 on Wednesday. So far, earnings have been relatively mixed and it is still unclear whether recent analyst downgrades will be justified in the market.
Looking at the economic calendar, the main events will be US retail sales on Tuesday and Chinese GDP on Wednesday. This will be followed by a policy statement from the BOJ and rate decisions from the ECB and BOC respectively. Friday will bring a raft of inflation data out of the US.
Here are this week’s stock picks: (vote for your favourite at the end)
Small Cap Discretion
Sarepta Therapeutics Inc. $SRPT
I am sticking with Sarepta Therapeutics this week as the stock still has potential to advance and has a good amount of bullish sentiment behind it. The stock is holding above support at $13 and has a StockTwits bullish sentiment rating of 100%. A break above $15 could trigger a nice upward move.
China Jo-Jo Drugstores Inc. $CJJD
I am bullish on Chinese shares in general and CJJD has the potential to rebound this week after dropping 11% on Friday.
The stock is still in an upward trend on the daily chart and has a tiny float. This is accompanied by a high level of insider ownership and bullish sentiment.
Altisource Portfolio Solutions SA $ASPS
Altisource Portfolio Solutions provides services and technology in the financial space and has a high short float over 25%. However, the stock jumped 8.57% on Friday and many shorts had to liquidate their positions. The stock is still ultra cheap with a PE ratio under 5 and the upward momentum could continue this week if more shorts bail.
Walgreens Boots Alliance Inc. $WBA
This week’s pick from the Trend Following For Stocks System goes to Walgreens Boots Alliance Inc. Shares in Walgreens hit another 52-week high last week on a combination of positive news.
The company delivered strong earnings results, announced the closure of 200 stores (which should cut costs), and there were reports of a deal with Express Scripts. The stock also has a high level of bullish sentiment on StockTwits and closed the week near it’s highs.
Perrigo Co. Plc $PRGO
Perrigo Co., based out of Ireland, is one of the world’s largest OTC pharmaceutical companies. The stock has been on a roll of late and is up almost 20% year-to-date. The stock is now due for a short-term pullback with a number of investors turning bearish according to sentiment indicators on StockTwits and Twitter.
Stops can be kept above the 52-week high of 215.73 for a initial price target around $190.
Disclosure: I do not own any of these stocks at present and I may initiate positions in any stocks mentioned within the next 72 hours.
Additional disclaimer: Please be aware of the usual risks to trading in financial instruments. Please remember the importance of doing your own research and understand the cost to trade including trading commissions and the bid:ask spread.
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