Will It Stick?
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Have You Seen This?

 

Your Daily Profit

 

November 25, 2008

 

*****Will It Stick?

*****Stock Updates

*****Black Friday

 

Dear Investor,

 

*****You may recall the last time the market’s put in a gigantic rally, I was skeptical. The Dow had just launched 900 points, reversing 25% of October’s losses. The Dow closed at 9,065 that day (October 28) and went on to peak at 9,625 the day before the Presidential election.

 

Basically, it was a case of “too much, too soon.”

 

I don’t think we have that problem this time. Even though the Dow has jumped close to 1,000 points in two days, it now sits in the lower portion of the post-meltdown range between 8,000 and 9,500.

 

In my opinion, that’s sustainable. So if you bought any of the stocks we’ve discussed here in the Daily Profit since Friday, you’re probably looking pretty good.

 

*****For the record, we had Graham Corp. (AMEX:GHM), Emergent Bioscience (NYSE:EBS) and Questcor Pharmaceuticals (Nasdaq:QCOR) on the table as good buys from Friday’s Daily Profit.

 

Graham could have been had most of the afternoon for $7 and change. It closed Monday at $8.42. Emergent could have been had around $17.50 Friday and it was pushing $20 Monday afternoon.

 

Questcor has been the laggard. It traded in a wide range Friday. Friday’s entry could have been anywhere between $7.20 and $8. The stock spent most of Monday trying to work through two resistance points at $8.20 and $8.40.

 

I realize that both Emergent and Questcor have been mentioned in Daily Profit before Friday. If you’ve bought either of these, or Graham, and you have a minute, drop me a line and tell me your entry price [email protected]. It will help me track the stocks if I know where you got in.

 

*****Here’s a question I wanted to share about Questcor. Tim Writes: I looked at the Questcor web site.  I do not see any products that would lead to optimism about its future.  What is their pipeline?  I fail to see the upside in terms of future products.

 

I’m going to be straight with you – I don’t know what’s in Questcor’s pipeline, either. And I only know that it has a drug for multiple sclerosis and another awaiting approval for some kind of central nervous system disorder.

 

But you know what? Everything I need to know about Questcor, I learned from my stock selection machine TRIGR. The company passed a rigorous fundamental and technical criteria to make it to the top of TRIGRs list.

 

Questcor has 6 months of revenue in cash and no debt. The company is profitable and is growing both revenues and earnings at a very impressive pace. And it expects to exceed its revenue guidance for the year.

 

So I may not know all the details of their products. But I know they’re selling them at record pace. And the company is using its cash flow to buy back stock.

 

I also know that Questcor was about the only stock around strong enough to make new 52-weeks in October, when stocks were getting creamed.

 

Finally, I know that my trading service TradeMaster Daily Stock Alerts recently made 15% on Questcor. Back in the summer, TradeMaster Daily Stock Alerts traded Emergent 4 times for gains of 12%, 19%, 17% and 12%.

 

For more about TradeMaster Daily Stock Alerts, click here.

 

*****I said I thought the gains of the last two days are sustainable. But that doesn’t mean it’s an all-clear signal. Unemployment is still on the rise. As much as Obama’s stimulus plans are welcome and necessary, they may not have a direct effect on the jobless rate until 2010.

 

And Black Friday is coming up fast.

 

I assume you know what Black Friday is. It’s the day after Thanksgiving and it’s one of the biggest shopping days of the year. It’s “black” because that’s the day retailers get back in the black.

 

Will that hold true this year? 

 

It’s hard to imagine it will. But what’s more important are expectations. Black Friday is usually a day to see how much more people are spending than the year before. But some analysts are already calling for the first drop in holiday retail sales since 1992. So Black Friday certainly represents a downside catalyst for stocks. 

 

End of year selling for tax loss and other reasons is another potential downside catalyst for stocks. I’d expect that most people have sold individual stocks they hold. Mutual fund and hedge fund holdings are the ones I’m a little worried about.

 

Best Regards,

 

Ian Waytt

Editor

Daily Profit

 





Posted 11-26-2008 1:36 PM by Ian Wyatt

Comments

mgvvmsrg wrote re: Will It Stick?
on 10-05-2017 12:43 AM

1

mgvvmsrg wrote re: Will It Stick?
on 10-05-2017 12:43 AM

1