Last week’s picks*:
VA: LXFR +0.69%
MR: LYB +0.99%
ST: EXPE +3.31%
SS: BLKB +2.77%
SS: IQNT -6.71%
First of all an apology. It would have been a good week if it hadn’t been for IQNT but I should never have tipped the stock as a sell in the first place. IQNT was actually on my watch-list as a long term buy so I had no business calling it a short.
It was the most popular pick from the poll and it still looks ripe for a dip but you just can’t bet on stocks based on their chart patterns alone. Another good lesson learnt.
Here’s this week’s picks:
Helmerich & Payne $HP
Helmerich & Payne is an oil driller that missed earnings last week and subsequently dived -8%. The company has had a rough couple of quarters thanks to the slide in crude oil and the stock is now down -20% on the quarter.
However, shares have found some support around the $80 mark and this area could mark a temporary bottom. If we see any kind of short covering in oil, HP should drive higher as the company has a solid set of financials and now yields a 3.48% yield. The company may have missed on eps last week but revenue was strong.
Moneygram International $MGI
Moneygram International is a financial services company that allows the quick and easy transfer of money between two parties.
The stock is sharply oversold with a daily RSI reading of 26.84 but the company now looks cheap trading at 8.57 forward earnings with a PEG ratio of 0.48. There is a big gap on the chart to $12 that bulls would like to see filled.
Orexigen Therapeutics $OREX
Orexigen Therapeutics is a biotech developing products for the treatment of obesity and recently completed Phase III trials.
Although the stock has moved near a potential resistance line, the stock is gaining in social volume on StockTwits (up 1214%) and 95% of users are bullish.
BJ’s Restaurants $BJRI
I am having another crack at fast food retailer BJ’s Restaurants this week which looks pricey with a PE ratio of 67.
The stock showed some signs of weakness on Thursday/Friday and if we drop under Wednesday’s low I think we could see support for the shares disappear. That could see the stock lower towards the $42 level.
Graham Holdings $GHC
Trend followers must always face the prospect of being whipsawed when entering into new highs so picking Graham Holdings is not without risk. The stock soared 13% last week and is now 35% up year-to-date.
However, the stock is still cheap with a PE of 8.59 and is in good hands with CEO Donald Graham.
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!
*Hypothetical results. Commissions and slippage not applied.
Disclosure: I am long HP.
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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