On the Verge of 2200
We’re almost there! The S&P may have been down on Friday, but it was up nearly 1% for the week and could now basically lean forward and reach 2200. Several of the editors (Steve, Jeremy, Kevin Matras and Tracey just to name a few) believe that it could hit that mark during the short Thanksgiving week. That would be a great way to start the holiday season.
The S&P was down 0.24% on Friday to 2181.9, but was up 0.8% for the week. The Dow declined 0.19% to 18867.9, eking out a 0.1% increase for the week. The NASDAQ was off 0.23% in the session to 5321.5, yet advanced 1.6% in the week. It should be noted that the Russell 2000 has kept its winning streak intact at 11 sessions of gains. It was up 0.47% Friday to a new high of 1315.6.
In the portfolios, Tracey added to both of her services. She added two names to Insider Trader and one to Value Investor . Also, Stocks Under $10 filled one of its vacancies with a new buy. Both of these editors are expecting to add again next week. Read more below:
Marvellous Returns for Surprise Trader
→ The Surprise Trader went to the bank on Friday! Eric sold half of three positions…all of them were positive and two brought double-digit returns. Marvell Technology (MRVL) “destroyed” earnings estimates in its quarterly report yesterday, so the editor sold half of the position and made 11.3%. Quintiles (Q) was halved as well for a 10.4% profit. Even half of Halliburton (HAL) was enough for a gain of 5.2%. Remember, the editor is still hanging onto shares of each of these positions to capture more upward momentum.
Today’s Portfolio Highlights:
• The Insider Trader added two stocks on Friday with 10% allocations in each. First up, shares of Church & Dwight (CHD) have slumped 10% in recent months as consumer products companies have fallen out of favor. However, the pullback prompted the CEO and the Chief Marketing Officer to pick up shares of their own company this month. Tracey thinks this could be a turnaround play, so she added it to the portfolio.
The other buy was Black Stone Minerals Partnership (BSM), which is one of the largest owners of oil and natural gas mineral interests in the country. The editor sees this MLP as a unique play on the recovery of the energy industry. BSM reported a solid third quarter recently, but its share price has been limited by the depressed price of crude. Over the last week, the company’s President & CEO made a massive purchase with buys on four different days. Read more about both of today’s buys, and be ready for more additions next week.
• There are plenty of vacancies in Stocks Under $10 right now, so on Friday Brian added Bioamber (BIOA). This chemical company works on renewable feedstocks and sustainable chemicals that would be replacements for petroleum. It has some positive momentum going for it right now. Though its earnings history isn’t that great, the editor was impressed with its three straight quarters of sequential revenue growth. Earnings estimates for BIOA are moving in the right direction, which explains its Zacks Rank #2 (Buy) status. The complete write-up has a lot more information on this new addition, and the editor plans to make another buy on Monday.
• It’s difficult to find value right now as nearly every index stretches to new all-time highs…but Tracey found one! Unifi (UFI) makes multi-filament polyester and nylon textured yarns and other raw materials. It’s a small cap in a niche market, but the editor likes the space and says it should do well in 2017 if the consumer sees improvement. Thanks to record results in its international segment, UFI beat on revenue in its fiscal first quarter report. But Tracey was most impressed with its price-to-sales ratio of 0.9, which is difficult to find right now. A reading under 1.0 can mean a company is undervalued. She added this Zacks Rank #2 (Buy) to Value Investor on Friday. Read a lot more about this addition in the complete commentary.
• “Moderate weakness in equities today after S&P cash came within 4 handles of all-time highs. Too many on one side of the ship expecting the breakout can make things difficult, which is why we saw the small pullback in the late morning hours.
“I’m expecting the move higher to 2200 to happen early next week. Mutual fund Monday should give markets a head start and the short, low volume week will make markets easier to push around.
“Look for a 2200 print Tuesday or Wednesday. It will make for a great headline Thanksgiving morning. Wall Street loves positive headlines on holidays,” said Jeremy in Zacks Counterstrike .
Have a Great Weekend,
Jim Giaquinto
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