IBD 100 Weekly: Two Ways to Profit

RichardSchwartz — Tue, 22 Jul 2008 13:22:00 GMT

IBD 100 VIEW. Usually I report to you the ‘new names’ in the weekly IBD 100 list of leading companies, those companies outperforming most other stocks in price and with good fundamentals and earnings and revenues. With the idea that there is a ‘first mover’ advantage in becoming cognizant of and familiar with these new companies before the crowd does, say before Cramer on MAD MONEY recommends them. A first mover’s advantage especially for those of you who will make the extra effort to go look them up and find out what’s driving them higher. Lot’s of time one can get on to the newest, latest fashion or hottest thing by doing some homework. I believe that extra effort can really prove illuminating and profitable. So, although I’m not recommending running out and buying a package of them in this bear market summer, below are this week and last week’s new names, some totally new and some rehashes, rejoining the IBD 100 list after being squeezed off it.

IBD 100 NEW NAMES (IBD dated Monday, July 21^st, 22008)

IBD Mkt Industry

Rank Symbol Name Price Cap Rank Business Line

18 EZPW EZCORP 16.78 694m 52 Pawn shops

43 CFX Colfax Corp 27.26 1120m 3 Diversified manufacturing; fluids, valves

63 ATVID Activison Blizzard 36.82 24,219m 57 Entertainment software (the old Activision)

68 SYUT Synutra Intl 30.57 1650m 164 Vitamins & nutrition – CHINA

79 MANT ManTech Intl 50.91 1774m 30 Enterprise software to US government

85 AIMC Altra Holdings 16.66 440m 3 Machinery; motion control products

93 BKE The Buckle 48.96 1500m 23 Retail; youth casual apparel

100 GIFI Gulf Island 43.16 614m 7 Oil field equipment

But today with the stock market mired in a bear market although maybe with it’s recent 2^nd steep leg down or decline just ended, let me add a second or different approach as well. That of capitalizing on IBD’s own offered up insights. IBD agrees we’re in a market correction but the weekend paper asks: “Which groups and stocks will emerge as the new leaders?” And then offers up a partial answer highlighting a few stocks to put on our watch list as possible new leaders and describes their current chart patterns; below:

IBD POSSIBLE NEW MARKET LEADERS

IBD Chart Review

5 MA MasterCard, Inc. 267.90 34,830m 52 Could be building right side of base

8 CF CF Industries 156.73 8835m 5 Four weeks into potential base -on-base

28 CLHB Clean Harbors 75.91 1771m 28 In 4^th week of possible flat base

42 CMED China Medical 46.04 1261m 70 Now shaping handle to Double Bottom

55 SDA Sadia 22.55 5134m 51 Quickly shaping right side of base

59 SXE Stanley Inc. 31.93 731m 59 Shaping handle to base started in January

Schwartz View: My plan, and what I’d recommend to you all, is to follow chart developments on the above possible new leadership candidates. This should give us a “2-fer.” First, some possible profits if these stocks do become market leaders as the first stocks up after any market decline usually perform very well. And second, some more study and thus understanding into how IBD analyzes bases. In that regard, I would recommend any & all books which William O’Neil, founder of IBD, has written or co-written. The market student can learn O’Neil’s CANSLIM strategy & much about chart reading too. And at this point, make sure you get his HOW TO MAKE MONEY SELLING STOCKS SHORT (2005) with Gil Morales.

Search results matching tags 'Profit', 'Cramer', 'The Principle of Technical Analysis', 'Credit Crisis', 'Industry Ranking', 'Historical Perspectve', 'Model Portfolios', and 'Bear Market Legs'

IBD 100 Weekly: Two Ways to Profit