Last Week’s Picks*:
It was another bad week for stock markets as the US dollar surged to it’s highest levels since the 2003 invasion of Iraq.
As a result, it was no surprise to see the stock picks do poorly with high risk shares taking most of the pain. Footlocker was the best pick of the bunch and is still firing on all cylinders.
Amazingly, I bought a slightly larger position in FL and this kept me above water for the week even though most other stocks were down.
Here are this week’s stock picks: (vote for your favourite)
Extreme Discount Strategy
AU Optronics Corp. $AUO
As I wrote in an article last week for Seeking Alpha, Taiwanese semiconductor company, AU Optronics Corp manufactures flat panel TVs and looks like one of the cheapest stocks outside the US right now. The stock was identified by the Extreme Discount system due to it’s compelling set of financial ratios including a PE of just 8.45 and a PEG of 0.18.
Although the Extreme Discount system is designed for long holding periods, AUO had a good week last week and that momentum could carry it forward.
Small Cap Discretion Strategy
Penn Virginia Corp. $PVA
Penn Virginia Corp. is an independent oil and gas company operating within various onshore regions of the US and Texas and has a market cap of nearly $500 million.
Shares in the company are seeing an increase in social volume before the open this week and the stock has a bullish rating of 94% on StockTwits. PVA was identified by the small cap discretion strategy as a potential mover this week.
FXCM Inc. $FXCM
FXCM Inc. is a retail forex broker that many traders will already be aware of. The company took a huge hit in January as a result of the Swiss National Bank move which saw the Swiss franc rise by a record amount.
Last week, FXCM moved higher on heavy volume and managed to finish strongly too. This is another stock identified by the small cap discretion strategy that could be poised for a turn around. The company is now valued at a market cap of $123 million despite having sales of over $400 million.
Graham Holdings $GHC
This week’s trend following with a twist pick goes to Graham Holdings, a diversified education and media company, formerly known as the Washington Post Co.
Graham Holdings was first identified by the trend following system back in November but the stock is still going strong having increased by over 20% in that time.
Despite hitting new highs, the stock is still cheap with a PE ratio of just 7.20 and a PEG of 0.4.
*Hypothetical results. Commissions and slippage not applied.
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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