Last week’s picks*:

VA: ISSI +4.87%
MR: PDFS +4.70%
ST: NLNK +31.11%
SS: BREW -1.02%
FX: EURUSD -77 pips

A good week for the stock picks as stock markets rebounded across the board. Panic over Ebola seemed to die down and earnings from several US corporates boosted optimism.

The best performing pick last week was our StockTwits call for NewLink Genetics Corporation, which is in the process of testing a vaccine for Ebola. The most popular pick from the poll was short BREW but the stock failed to drop and ended higher by 1.02% on the week.

Here’s this week’s picks: (vote at the end!)

Value

Alliance Resource Partners $ARLP

Alliance Resource Partners is a coal producer that I spoke about in a previous article. The company is due to report earnings after the close on Monday so there is the possibility of that having a positive effect on the stock price.

Looking at the fundamentals, ARLP offers good value, trading at 10.80 price to earnings with a PEG ratio of 0.86. The stock has already climbed 10% since my Seeking Alpha article, but there’s a chance it could hit $47 this week.

ARLP chart stock picks

Mean reversion

Advanced Micro Devices $AMD

Advanced Micro Devices build computer chips, processors, graphics cards and memory devices, in a similar vein to Intel. But while Intel is up 45% from the 12 months previous, AMD is down -44%.

The stock is now significantly oversold with a daily RSI reading of 25.88. And although the stock has a hefty PE ratio of 38, the stock is still attractive on other measures to merit a bet.

AMD stock chart

StockTwits

Mellanox Technologies $MLNX

Mellanox Technologies Ltd. is a semiconductor business that produces a broad range of semiconductor products for computing, storage, Web 2.0, financial services, and a few other areas.

Mellanox is the third most trending stock on StockTwits over the last seven days as social volume has increased by 1209%. While the stock only has 300 followers sentiment on the shares is 100% bullish. The company reported a good set of numbers last week and could ride the wave of investor bullishness this week.

MLNX stock picks stock chart

Short sellers

Craft Brew Alliance $BREW

I picked out Craft Brew Alliance last week owing to the company’s hefty earnings and valuation ratios.

Although the shares did not fall, the stock kept in it’s range last week and the chart indicates a wedge pattern developing. RSI currently stands at 67 and momentum looks to have waned so a pullback is still on the cards.

BREW stock chart

As always, let me know what your favourite pick is by completing the quick poll below and if you have any others you’re looking at, leave them in the comments below!

[poll id=”9″]

*Hypothetical results. Commissions and slippage not applied.

Disclosure: I am long ARLP.

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.

Did you like this post? Please share it!


 

Tags: ,


Leave a Reply

%d bloggers like this: