A screen I run often searches for stocks that have debuted on the market with an IPO within the past two years. I prefer trading in young innovative stocks that can make strong moves based on powerful earnings and revenue increases.
Today’s group contains stocks that are very familiar to this blog as they continue to appear on almost every type of screen I run.
Why?
They have been the leaders of the market over the past 1-2 years at one point or another. I can’t say that I would buy shares in all of the issues listed below but they are on a watch list. Momentum trading has been very profitable over the past 6-8 weeks as we can see in stocks such as CLR and SD.
Continental Resources is up more than 100% since it’s low in January of this year. It’s moved from $24.44 to $47 in one month on huge volume versus the average. The stock is certainly extended but that’s what I thought when it debuted on the blog on January 7, 2008 at $26.57
CLR – Continental Resources Inc., $26.57
This is the first appearance of the stock on this blog as it has had a nice run from $15 to $28 in four months. The stock is extended but trending higher. An ideal entry is above the 50-d m.a. Set up a favorable risk-to-reward trade before entering.
Titan Machinery and Visa Inc reported solid numbers but their stocks went in opposite directions based on the guidance they gave moving forward.
Young Stocks up on Higher Volume
- VMW – Vmware Inc., $67.33, +37%
- TITN – Titan Machinery, $22.00, +93%
- SD – Sandridge Energy Inc., $47.01, +30%
- GA – Giant Interactive, $13.96, +282%
- GTLS – Chart Industries, $41.05, +45%
- CLR – Continental Resources, $46.54, +43%
- AMCN – Airmedia Group, $19.56, +121%
- V – Visa Inc, $76.53, +43%
Hi Chris – I enjoy reading your blog, and agree with many of your stock picks. Your approach is conservative and disciplined, and I check in every so often to see what you’re up to. My question is about ISRG. The stock was really hot for a while, and had a good run in mid March to mid April. It’s way off its high, but is top in its industry with pretty much no competition. Do you follow it? Any thoughts?
Stacey,
See my post tomorrow as you could tie ISRG into the general premise. The leaders are having trouble making new highs. The battle is on between bulls and bears. The bears may win…?