Anyone remember clearly canadian? i haven’t had one in a while but i used to be obsessed with these tasty beverages lets say…..13 years ago or so haha? Anywho…… This chart broke out today of a great looking chart pattern on increased volume where i entered at .91 alerted via shout box “Member only feature”. I think this could become a very short term high profit trade. See chart below.
Feb 27, 2008 Small Cap Stock Picks
Small Cap Stock Pick: CNTF
CNTF made a strong run today breaking out of its bearish descending channel on news of strong earnings and a positive forward outlook. Quoting a PR from yahoo finance.
“The company’s smartphone business nearly doubled sequentially and was well above our projections due to robust demand for dual-mode smartphones,” Jefferies & Co. analyst Brian White wrote in a note to investors. He rates the stock “Buy.”Techfaith also disclosed plans to work with Google Inc. to develop a phone based on the online search leader’s Android operating system.
The company earned $3.2 million, or 7 cents per share, up from a loss of $6.7 million, or 15 cents per share, in the same period a year ago.”
CNTF has a significantly low forward P/E of just 9x earnings compared to the communications services industry average of 23x earnings. With Estimates around .66 forward earnings this gives CNTF a fair future value within its industry of .66 x 23 = $15.18/ share compared to todays closing price of just 6.21 leaving room for a 144% gain from here to be faily valued within its industry. This undervaluation and momentum on the chart gives us a great setup for a short term trade. Price is unsteady at the moment so i don’t have a full out plan for buying just quite yet. But rest assured im watching this closely and you should be too!
Feb 26, 2008 Small Cap Stock Picks
GIGM has been a long term favorite of mine that i have traded a few times in the past. I like the way this chart is setting up and think we could capitalize on a move as we head into there earnings call expected march 10th. Price Broke its bullish flag pattern to the upside monday suggesting a continued bullish run. We should expect to see 20.69 horizontal resistance to be broken soon for a further upside move which in turn hopefully snags us a few points! I bought at 20.39 alerted via shout box which is a membership only feature.
technical Analysis :
SBLK caught my eye last week when price broke out of a solid looking chart pattern near 11.50/share and have been watching patiently ever since. i bought only a small 1/4 position here as earnings are going to be released after tuesdays close. Analysts are expecting a forward earnings of 1.38 of SBLK which weighs some significant fundamental under valuation as SBLK’s future fair value within the water transportation industry is around $25/share. Earnings plays are risky and i try to stay away from them the most i can. But i like this setup and SBLK’s valuation. Note: only 1/4 position filled here at 12.18.
Feed has been able to become quite volatile over the past months and has yet to see another very strong run as of late. Although the chart is forming a nice looking pattern that could be potential for a very strong day trade of short term swing trade. If price breaks above the last price spike resistance of 11.74 i think going long will present a very possible profitable trade. Keep this on the watch list in the coming days/weeks.