Last Week’s Picks*:
Strong gains last week for $PVA and $AUO but not such a good week for $FXCM. Broader stock markets rebounded over the week as the Federal Reserve modified its stance on interest rates. Although rate hikes are still firmly on the table, the Fed indicated that the economy is not yet strong enough to withstand a reduction in liquidity. This saw stock markets move nicely higher by the close on Friday.
Here are this week’s picks: (vote for your favourite at the end)
Park-Ohio Holdings Corp $PKOH
Park-Ohio Holdings Corp is a diversified holding company that provides integrated supply chain management services for the global manufacturing industry. The company operates across 19 countries and has a market cap of $650 million.
The stock was identified by the unusual volume system this week as having potential to rise over the next 7 – 14 days. The stock started last week off poorly but finished near it’s highs.
JA Solar Holdings Corp $JASO
The extreme discount system is designed to pick up cheap, value stocks that might may good longer term holds. JA Solar Holdings Corp is a Chinese company trading on the Nasdaq and meets all the criteria for the system with a PE of 3.77, forward PE of 6.45, PEG of 0.17 and current ratio of 1.30.
The stock is certainly cheap and finished at it’s highs last week, suggesting a new up-trend could be beginning.
Small Cap Discretion
Noah Holdings Ltd $NOAH
This week’s small cap play goes to Noah Holdings Ltd, an asset management company based in China with a market cap of $1.24 billion. A press release last week indicated that Noah is receiving a significant investment from Sequoia Capital China and this could give the company some momentum next week. Bullish sentiment from StockTwits users is already high at 100%.
Penny Stock Play
Gold Resource Corp $GORO
We saw the dollar continue it’s surge last week and this caused most commodities to fall heavily too. Precious metals gold and silver, however, have been hanging in there despite new highs in the greenback. That poses the question as to what will happen when there is a consolidation in the dollar. We may well be about to witness a new bull market in gold and that means gold miners could come back in focus.
*Hypothetical results. Commissions and slippage not applied.
Disclosure: I have no positions in any stocks mentioned but may initiate positions in PKOH, JASO or NOAH 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.
Did you like this post? Please share it!