The Dean’s List 5/11/09 With Penny Stocks, Overbought Stocks and Earnings Plays
May 11th, 2009 at 4:58 am Posted by The Dean
WWAG is up 7 of the past 8 days and I expect it to break out above $1 any day now.
KAZ is a oil and gas stock that traded up 66% on Friday and I’m still long because the P/E is still well under 3… making this a potential earnings momentum runner on deck.
QELP is another oil and gas stock very similar to KAZ and I’m bullish here as well.
LEE is my #1 potential short because the stock tripled in price last week despite announcing horrific quarterly results. Friday was the first semi-sideways day and unless LEE acts very strong on Monday I’ll be shorting it.
LEA was mentioned in a Barron’s report as a “name that could be in trouble” and taking advantage of this negative publicity to short the stock.
AXL is another potential short I’m watching very closely. If it trades negative and/or moves sideways I may short into the weakness.
MEDQ released its 10-Q on Thursday 5/7/09 and it gapped up on Friday, closing up 57%. IMO this stock is still on deck as an earnings runner and will continue trending higher.
PLM doubled in price last week and when momentum cools off (negative on the day + one hour of sideways action) I will short this stock.
GOK announced record quarterly results after the closing bell on Thursday that sent the stock up 61% on Friday with massive volume. I expect the volume to continue today and this could be another big earnings runner.
SUMT appears to have hit a lot of resistance in the $4.50-$4.60 range after Wednesday’s announcement that Vista Equity Partners has offered to buy all shares outstanding for $4.50 per share. Despite this news it could have $0.50-$0.75 downside because (1) its up +300% in 90 days and (2) nothing but sideways price action the past few days.
first exposure to the sight — i like very much what i see — only had a short time to enjoy your work today — will be back early and often– I checked the charts and saw the end day results on “lea & axl” damn!! missed those today but good call— I love to short or buy puts–I enjoyed the video featuring “wwag” I will be watching for a entry spot on that one.. keep the horns sharp– good day ken.