Last week’s picks*:

VA: FCX -8.57%
TF: NAVG +0.19%
EP: DE -0.18%
ST: FL +1.83%
SS: ANIP +1.60%

OPEC’s decision not to cut the production of oil on Thursday saw some huge sell-offs in the energy space last week as crude oil futures plunged to their lowest in four years. That caused havoc with our picks as Freeport McMoRan dropped almost 9% on Friday.

The most popular picks from the poll were Footlocker and ANIP and those two stocks were the best of the bunch.

Here’s this week’s picks: (Vote for your favourite at the end)

Value Screen

American Railcar Industries Inc. $ARII

The plunge in oil has left energy shares extremely oversold and there are now plenty of bargains hanging around. American Railcar Industries Inc. builds and owns railcars used to transport oil and other commodities across the US. Shares dropped 12% on Friday as a lower price of oil impacts many of ARII’s customers.

However, ARII has a steady backlog of orders going back two years and I can see the shares bouncing back relatively quickly.

The stock is cheap by most measures and has famous activist investor Carl Icahn on board.

ARII stock pick

Trend followers

Micron Technology Inc. $MU

Shares in Micron broke to a new 52-week high last week giving the opportunity for trend followers to step on board the ride.

Micron is a leading semiconductor firm with a big presence in flash memory and the microchips used in mobile. The company has beaten earnings estimates for six straight quarters but is still relatively cheap with a PE of 14.15 and a PEG of 0.94.

MU stock picks


Idera Pharmaceuticals Inc. $IDRA

Idera Pharmaceuticals are a clinical-stage biotech firm developing nucleic acid therapies for patients with serious, life-threatening diseases such as dermatomyositis and Duchenne muscular dystrophy.

The stock had a good week last week, pushing through the $3 level with steady volume. The chart is pointing to more gains ahead and the stock has a 96% bullish sentiment rating on StockTwits. Another stock worth consideration is $BLOX.

IDRA stock picks

Short Sellers

Ani Pharmaceuticals Inc. $ANIP

I am sticking with Ani Pharmaceuticals $ANIP this week. The stock appeared to lose momentum towards the end of the week and there is plenty of room for the stock to drop back.  The US based manufacturer of prescription medicines looks overbought and volume has dropped off. Meanwhile, financial ratios are still expensive.

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!

anip stock picks

[poll id=”14″]

*Hypothetical results. Commissions and slippage not applied.

Disclosure: I am long $ARII.

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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