Last week’s picks*:

VA: ARII +0.71%
MR: FCX -0.56%
ST: EXPE +0.17%
SS: BJRI -6.95%

Not a very good week for the picks. Our buys struggled to get any momentum while our only short position broke out to the upside and lost 7%. Our StockTwits trade from last week (Expedia) seemed to get stronger as the week went on so it might be a good play this week. The most popular pick was ARII which only just managed to stay in the green.

Stock markets are now once again at record highs, and the speed by which they’ve got there means another pullback could be on the cards.

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

Value

Luxfer Holdings Plc. $LXFR

Luxfer Holdings is a UK domiciled company that is a world leader in the production of magnesium alloys and powders, zirconium chemicals, superformed components, and high pressure cylinders.

The company employs 1450 people in 27 countries and is listed on the NYSE with a market cap of $425 million.

Luxfer is considered cheap on a valuation basis with a PE of 8.19, PEG of 0.82, and price-to-sales ratio of 0.89.

As usual, value plays can take some time to play out. However, Luxfer is now down -22% year-t0-date and the weekly chart reveals four consecutive higher lows, meaning the stock might be about to rally.

Luxfer holdings LXFR stock picks stock chart

Mean reversion

LyondellBasell Industries NV $LYB

LYB is one of the world’s largest plastics producers and is domiciled in the Netherlands. The company operates 55 sites over 18 countries and has been a steady performer over recent years.

Although the stock is not particularly oversold on a short-term basis (daily RSI is 39.2) shares have definitely found some support around $85, a level that the stock has touched over ten times this year.

LYB is cheap too, with a PE of 10.28 and this looks like a good time to pick up some shares.

LYB stock chart this weeks stock picks

StockTwits

Expedia Inc $EXPE

I’m sticking with travel company Expedia this week. The stock finished strongly on Friday after it reported a good set of numbers the week before. Unless we see a broad market sell-off, momentum might be enough to take the stock towards the $88 level.

Other candidates from StockTwits include Sierra Wireless $SWIR which soared 24% last week (93% bullish rating on StockTwits) and Geron Corporation $GERN (91% bullish rating on StockTwits).

expedia stock chart

Short Sellers

Blackbaud Inc. $BLKB

Blackbaud Inc. is a provider of nonprofit software and services and trades on the Nasdaq with a market cap of just over $2 billion.

The stock has shot up 20% year-to-date and this has made shares look too expensive. PE is 57, PEG is 3.02 and current ratio is under 1 as the company has some debt on the books.

Although momentum is with the bulls, the stock is overbought now with a daily RSI reading of 72.

Blackbaud inc stock chart

Inteliquent Inc. $IQNT

Inteliquent operates in the telecommunications industry providing voice and wireless solutions.

Although I was a buyer in the past, IQNT shares have shot up and are now ripe for a pullback.

Daily RSI reads 81 and shares are now 30% above their 200 day moving average. They could easily fall back to $15 from here.

IQNT 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=”11″]

*Hypothetical results. Commissions and slippage not applied.

Disclosure: I am long LYB.

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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