We thought a useful exercise would be to recap some of our past Newsletters (free) and Reports (paid) from the last few months. Below you will see a partial list of stocks that we highlighted, perhaps comments that we made regarding a particular equity, and a chart from time to time. We hope that you recognize how a few names show up again and again. This is because there are stocks that we have an inordinate amount of conviction in and we intend to convey that quite clearly to our paid subscribers. We also hope that you notice some of these stocks are appreciably higher today than when they were first mentioned. This, ultimately, is what we’re all about here at Monster Stock Trader. If we don’t make our subscribers money, then all the fundamental and technical chart analysis means nothing.
8/19 (Newsletter)
BIDU
PCLN
RAX
SWI
8/26 (Newsletter)
TNA
MDAS
A monthly chart of MDAS shows the stock may well just be getting started. First, this company counts quality stocks like SXCI and CERN as its group mates, so there’s that; second, while it’s still a bit on the thin side, mutual funds are obviously in the process of discovering this stock, though, admittedly, none have made it a top 25 holding as of yet. But management owns nearly 50% of the shares. Think they have a vested interest in the company’s success?
GS
If you didn’t buy the stock when it bounced off its 10 week moving average, fret not, you may very well get another shot. Goldman Sachs has been trading incredibly tight now for about a month. Just how tight? The last four weekly closes have all been within 1% of the previous week’s close. And this week is turning out to be not much different….It’s clear to us that GS is being accumulated. When you notice price action this tight coupled with low or mundane volume it is a dead giveaway that institutions are at work in the stock. The way we see it, GS is buyable if and when it surges to the upside on big volume.
8/28 (Newsletter)
RAX
CTCT
DGW
If you believe that clean water is important to China, then you may very well want to follow DGW. This is a company that grew 69% in 2007, 78% in 2008 and, believe it or not, is expected to grow 242% this year. Again, this stock is traded thinner than what we prefer so we wouldn’t bet the farm on it just yet.
Look here and see a three weeks tight: SolarWinds (SWI); look there and see a flat base: Baidu (BIDU).
9/6 (Report)
PWRD
BIDU
SMSI
RAX
SWI
Forming a shallow cup base at the moment. The 10wma support is very impressive and is an early buy right here
9/8 (Report)
FIRE
Firesource (FIRE), along with its group-mate Arcsight (ARST – chart not shown), has been experiencing some very tight trading lately. We consider this all the more impressive given the market’s recent weakness and the fact that FIRE is a thinner stock. We hope that the recent breakout of ARST bodes well for FIRE as both these companies have outstanding earnings growth and are involved in a space (cyber-security) that is surely to play an important role on the world’s stage in the not-too-distant future
HITK
9/9 (Newsletter)
LIFE
ARST
We consider this stock to be in a buyable range, with the idea that it should now be in the next “stage” of its run and its old highs should now be a floor.
HITK
Well, the stock made us look like we know what we’re talking about as it rocketed 24% higher today after blowing away earnings.
9/10 (Report)
AMSC
BIDU
PWRD
CYOU
EJ
EJ remains at the top of the list and with a big acceleration in Sales and EPS during the prior quarter is a healthy sign this stock could be setting up for a big run.
HITK
9/14 (Report)
MDAS
We believe the stock is buyable around the 10 week moving average (presently running through $20 or thereabouts). We would not be shy about adding to our position with a big volume move past 23.50-24.00, either. From there we would like to see that old high become a new floor for the stock.
PEGA
The average daily volume has increased by over 100k this past month alone, from 259k shares traded a day to 364k; again, this is an equity where the number of mutual funds owning it has almost doubled over the last 4 quarters, so this increase in liquidity is not surprising.
GMCR
AMSC
9/16 (Report)
BIDU
ISRG
GMCR
IAG
SWI
9/16 (Newsletter)
RAX
One could certainly have initiated an “anticipatory” position on Tuesday, with the idea of perhaps doubling up on a “cup” or “cup with handle” breakout.
FIRE
CRM
BIDU
We saved what we consider the best for last: Baidu (BIDU) is a stock that, frankly, we’ve been trumpeting from the rooftops for about 100 points. This is what they call a “big stock.” And when it comes to a big stock you either go big or go home….Folks, if you aren’t in BIDU formulate an intelligent plan and do whatever it takes to get your share. Be mindful of risk, of course, but also be aware of the risk posed by being left behind. If BIDU pulls back to the 368-385 area, pulls back to the 50dma/10wma, pulls back period, snag some shares and start building your position.
Stocks like FIRE, HMIN, PEGA and SXCI are becoming institutional quality right before our very eyes. These and others are a part of the rotation we’re seeing out of junk-off-the-bottom (JOTB) stocks and into young, fast-growing companies that are operating in cutting-edge areas of the economy.
9/18 (Report)
DGW
SWI
FEED
VIT
This is at times a rather spastic stock, so buyer beware; however, having said that, we do consider it buyable between 17-18, most especially with a big volume move higher.
9/20 (Report)
SXCI
PCLN
ISRG
HMIN
FIRE
ABVT
The first name is a thin stock, but in the right industry. Fiber optics was a huge growth industry during the internet boom of the late 90s. However, with the bubble bursting there wasn’t a need for large fiber networks. Now with the internet and content provided on the internet growing leaps and bounds the need for networks to handle massive amounts of data is huge. Fiber optics are the only cable that can take the load needed in this environment. ABVT – Abovenet Inc is a leading provider of fiber networks has recently been trading tightly until Friday’s jump.
RAX
VRX
There are plenty of medical and drug companies that are making noise like DNDN HGSI, but there is another who is creaping up on these two. Valeant Pharmaceuticals – VRX is looking to break above its downtrend line as volume began to pick up on Friday. A break through its downtrend line on big volume would be an area to buy.
SWI
9/23 (Newsletter)
FUQI
LIFE
9/24 (Newsletter)
PWRD
SWI
ARST
GS
We highlight Goldman Sachs (GS) tonight as everybody and his mother seems to want to short this stock. We must admit, why somebody would want to short a stock that found support at its 10dma, all while its RS Line (not shown) hit an all-time high well ahead of price is beyond us.
9/27 (Report)
BIDU
SWI
RAX
PCLN
A large stock that has been largely written off seen by the large amount of shorts in the stock is PCLN. Priceline is not a sexy stock like SWI and RAX, however. It is a large liquid institutional favorite stock. Having the ability to see past the noise that is presented to you daily is why we are able see PCLN form the price patterns it is in.
GMCR
IAG
A buy here makes sense, with a cut-loss of around $12.00-12.50
FUQI
9/28 (Newsletter)
BIDU
Ken Heebner’s CGM Focus Fund, one of the best mutual funds in the world, is one of the largest holders. Heebner is famous for his big bets. In fact, a list of major holders of this stock reads like a who’s who of world-renowned money managers.
F
9/29 (Report)
GMCR
Green Mountain Coffee Roasters (GMCR) is the kind of “big boy” stock we love here. It had a big day on Monday, breaking out on enormous volume. It held most of those gains Tuesday, while pulling in a little as volume receded. This action is completely normal and to be expected. We view GMCR as very buyable anywhere from $71-73.
HMIN chart
We consider HMIN buyable anywhere around the 20 day moving average and if it should rise above $30 or so on big volume. One’s cut loss is a close below the $27-27.50 level (a “close below” due to its rather thin status).
RAX
10/1 (Report)
BIDU
AAPL
FUQI
ISRG
PWRD
VIT
VRX
10/3 (Newsletter)
AAPL
GFA
ARST
PWRD
RAX
10/4 (Report)
BIDU
So the plan is simple: if the market rallies and BIDU jets above that resistance on volume, add; if the stock then falls back below then sell those added shares. If BIDU never makes it above that resistance, however, and fails at the 50 day moving average, then we would ask you to consider your cost-basis and to figure out if you can take another 10-15% pull back. Depending on how the market is behaving, you may just want to wait for BIDU to set up again.
GMCR
While GMCR has dropped below its “pivot point,” a daily chart shows that volume fell as it pulled back. Also, it’s now formed a “three weeks tight” pattern, something which indicates that institutions are at work in the stock. Another scenario for GMCR is that it may be forming a second handle to its “cup with handle” base. This wouldn’t be surprising, as GMCR’s first handle was a little short in relation to its overall base length, so it just may be that it needs more time before finally taking off in earnest. We think a big volume push above that trend line is a buy/add.
IAG
10/6 (Newsletter)
No stocks Highlighted
10/7 (Report)
BIDU
TNA
GFA
EJ
Whether or not you call EJ a “cup with handle” pattern doesn’t matter. It’s a buy. We’ve discussed EJ in past reports as buyable around its 10 week and 50 day moving averages and again as it broke above the trend line we’ve drawn on the daily chart (see below). The number of shares sold short has gone from 765,341 to 3,633,225 in just two months. This is potentially explosive fuel for the stock to rocket higher.
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