Continue to favor technology names : such as TLAB, SONS and NT.
Previous mentioned idea NT – showing signs of strength. Continue to add on this name on any pullbacks.
Crude faces resistance at 60; similarly OSX (oil services) struggling to surpass the 200 level. Overall, looking to short on any strength. Taking a negative view for the first half. Premise based on the oversupply in the marketplace and market has not fully accepted those facts. Finally, many chasing the oversold bounce but I expect one more washout.
5 Money takers Ideas.
SWY:(Market Cap: 15.94 b) A consumer staples play specifically in the food and drug retailer industry. Like the unique exposure into organic food. Street Analysts are not overly bullish in their ratings (5 buys 5 holds and 2 sells).
Despite a strong run in 2006, stock remains attractive. Use pullbacks and trading pauses as buying opportunity. Stock underperformed the broad markets from 2000-2005. Last year SWY picked up momentum as part of a recovery story. Major resistance at $50 - which serves as an upside target. Downside risk closer to $30-32 ranges.
CRA: ( Market Cap 1.24 b) Small Cap biotech play. Recovery continues around $16 range. An attractive upside given the stocks is far removed from all-time highs of $276 in 2000. Price strength reflects Improving fundamentals. Setting up for a longer-term recovery. In the past 6 months analysts turned positive with upgrades. Long-term data suggest an attractive reward from deeply oversold levels. Although, recent rally around $16 appears stretched, given the attractiveness of healthcare themes looking to add on pullbacks. CRA stands out as an investment with a 6-9 month target.
GMST: (Market Cap 1.76 b) A media theme. Bottoming from a long-term perspective. Far removed from key support of $20 whiles stock is stabilizing. Recently, stock demonstrated strength by breaking out above $3.40 range this fall. Recently volume building positively on the upside.
Looking for further recovery and growth in the media sector. Also, recent takeout rumors floating including NWS (Newscorp).Regardless, the technical profile showcases a bottoming process and the cycle points to a favorable months ahead. Evident turnaround story taking place,
growing confidence building among investors and a strong argument for being undervalued in its sum-of-the-parts.
TLAB: (Market Cap 4.81 b) Communication Equipment Theme. The bullish argument rests on growth on carrier bandwidth. Currently holding above level $10. Analyst are mixed on the name but mainly neutral/bearish. Looking for improvement in sentiment but importantly downside tested and displayed resilience in the past 3 monthes. There is a takeover rumor as well. Unnecessary pessimism among investors especially in recent quarters. Setting up for a higher reward.
