Thursday, May 26, 2011
CGIX Big Tobacco or Big Pharma
CIGX Star Scientific is a company that comes along every 10 years in the stock market. Whether your trading it's fundamentals, technicals or it's short interest there is a place in your portfolio for it. Just saying, stay away in my opinion is not good enough, at least for the possibilities with CIGX. Before a valid opinion is presented I think you got to learn the whole story here. Do I think it is Speculative? You bet! But, I say that with some positive certainty that CIGX is a great speculative pick to own. If your going to own a speculative stock this is it. Why?
It is possibly the only company out there that can be bought by BIG TOBACCO or BIG PHARMA! Now that is some speculative power!
Well for starters, yes it shows up under the Tobacco sector along with Mo and the others. But, This is actually where the detective works begin. CIGX is a tobacco stock that might be disguised as a Bio Tech. Yep, a Bio Tech with the possibility of a couple of block buster products in research.
1.) The Roskamp Institue in Bradenton, FL has invested and in the process of conducting research on a compound named RCP-006. This compound has already demonstrated some positive results in that it is a natural ANTI-INFLAMATORY with benefits to ALZHEIMERS and C-Reactive Protein. For those not in the medical field CRP is a marker for heart disease. If the studies continue in a positive direction this will be a great value product for any large Bio Tech or Big Pharma Company. Think of what Lipitor did for Warner Lambert, Lipitor was invented by Warner Lamber Parke Davis and PFIZER bought the whole NYSE traded company for one product back in 1998. Lipitor was not a pfizer product.
2.) The product also helps take out the carcinogenics is tobacco making "smoking safe" Oxy Moron. Or a great treatment to stop smoking! Values to BIG TOBACCO and Big Pharma you pick it.
3.) They have won favorable patent rulings already against RJR.
4.) The smokeless tobacco product that they currently sell Dose NOT fall under the 2009 Family Tobacco ACT or even monitored by the FDA... What, you think MO or RJR would like to get there stained paws on that? How MUCH?
Yes it's a speculative stock but where have you ever seen a possible target by two sectors that have some of the deepest pockets in the world? Is it a Bio Tech or Tobacco company we will see who wins.
long CIGX
Saturday, May 21, 2011
Friday, May 20, 2011
Tuesday, May 17, 2011
Thursday, May 5, 2011
Hi Ho SILVER!
SLV ZSL Rubber Band Theory. First thing, I'm not suggesting a BUY in SLV or ZSL at this time at all. Especially with all the new margin requirements and volatility going on currently but I am watching for the magic point in time, for a TRADE in the SLV. The Rubber Band theory is that the BBands are over stretched on the way up (SLV)(Parabolic) which would result in a giant snap back (pullback) to a mean. This giant snapback would result in an over compensated snapback to the down side then back up to a reasonable price mean. Looks like 2 STD BB is at 36 but SLV could over compensate to 32 or even 30 the initial breakout. With all these new factors like Margin requirements, Carlos Slim and Co. Dumping we could even see more volatility this time. Retail investors are still holding profits in SLV if it was purchased last summer and might be dumping now because of all the new press, call it "running for the doors." (Capitulation) At some point in time Carlos and Co. know this and are going to be ready to pounce once again on silver. Keep your eyes and price levels on alert. Personally I think this trade (longer term is done for the next 3 to 6 months, But for a 3 or 4 BB trade I'm in!
http://tinyurl.com/3qc2xb4
Wednesday, May 4, 2011
Market ideas
As you know I am a Wall Street Technical Strategist which is very long for “Trader” I want to offer up for your personal funds a few choices for you to think about. The companies that follow are very good, stable, growth and actually somewhat conservative choices. I will include ONE somewhat speculative company too.
One thing that I need you to know is that MAY is typically NOT a great time to buy stocks. Sell in May and go away is very real. Wall Streeter’s begin to go to vacation and market volume declines starting in May through August. Because of this I don’t want you to run out and BUY a BUNCH maybe just a little currently. I will give you some guidelines.
Catepillar CAT As you know CAT manufactures Commercial trucks and heavy equipment. This company is leading the Global recovery “I stress GLOBAL” CAT is a world leader and is not subject to fluctuations in just one economy like the US. CAT is a very strong GROWTH story. Even though the company currently trades over $100.00 it is expected to grow much more. If your into PE’s it’s 20 which is low. Currently CAT is expected to grow 30% in 2012. THE TRADE: Currently CAT is at 113.00 they just announce fantastic earnings and is selling off slightly. The closer you can get it at 110.00 the better. I think in this current time frame and month of May there is a very good chance. I would divide the money you allocate to CAT into 4 bunches. 1st BUY at 110.00. 2nd Buy if it continues to decline to the 40 Day Moving Average (DMA) then wait. Do not buy your last two buys until CAT moves back up through the 20 DMA and then above your first buy point. Plan 2, Just wait until late July to buy and do the same thing described above at July prices. There is no hurry here because of the summer months.
Biogen BIIB Biogen is a Leader in the Bio Tech arena. 3 short years ago they were thought to be a possible take over story but they have developed a new compound called BG-12. The data is extremely positive on this new compound and the MS community is very excited! Biogen’s product line is very focused and strong, their other compounds are also highly used in the medical community and great data is coming out every day. This is a company that traded at $45.00 less than one year ago and now trades at $97.00. No longer a take over target. The reason, Medical Community recognition of BG-12, and Big Institution investment. BG-12 is going to be like Lipitor to Pfizer when it was released. BIG! Biogen has hired an additional 70 representatives Nation wide to keep up with demand. Even trading near $100 you have not missed the boat yet. Your looking at a 125 to 175 stock. BG-12 is going to be a huge growth engine that is not communicated on the Balance sheet yet.
THE TRADE: BIIB trades currently at $97.00. Same thing as in CAT divide the Money into 4 piles. If we can get BIIB at 95 that is going to be very good. 90 will probably be a true gift. After that, once BIIB gets above 100 and stays there 120 will come quickly.
Some what Speculative
Sirius SIRI Sirius is the only Satellite Radio company. Their channel line up is great. Teamed with the NFL, MBA, NHL and NBA along with Howard Stern every news channel you can imagine and type of music to set every mood all for $12.00 month. This company is on the comeback after years of BURN of start up capital and bringing Howard Stern on. They also merged with XM 3 years ago. The stronger of the two names and programming prevailed, SIRIUS. I like this above $2.00. I think you have a lot of upside to 5. When will we hit 5? Don’t know that or if we even will. The momentum will build and institutions will come in at 5. I look at Sirius as a new snowball rolling down hill, there is the potential of SIRI really getting back to 2004 levels of 6 to 10. THE TRADE This is the one that I’ll let you BUY a BUNCH on a HUNCH between $1.90 to 2.10 and forget about it. Don’t go crazy this is our speculative play here and we could be wrong. SIRI is currently breaking out to the upside which means money is coming it. This is positive.
Thursday, April 28, 2011
We are moving on up!
Is it all systems go yet? Almost, but we must see just one or two more closes over that 1350 level. Will the markets be off to the races? Probably not, we are starting to come into the summer months which marks low volume and Wall Street Traders going on vacation. Because Ben Bernanki’s policy dosen’t give investors many choices to do with their money. Institutions have to deploy money on a monthly basis, the only choices for funds are equities or gold / silver at this point which means stocks and commodities should go up.
http://tinyurl.com/4xmzozk
Wednesday, April 20, 2011
Silver Gold vs. Companies SLW
http://tinyurl.com/3nrp48o
http://tinyurl.com/3gcb2mg
http://tinyurl.com/43a99hu
Wednesday, April 6, 2011
Are you ready to make some cash?
Where are we right now? We are exactly where we were last week in the SP500. That’s not a bad thing at all, as a matter of fact it’s rather constructive to be stuck right now. The SP500 has come a long way since the 1260 low in mid March. We are currently bumping around at 1330 for the past few days. Resistance is right here at 1340. 1340 was also the prior high from mid February. So what does this mean to you? It means that you need to be somewhat involved until the bull is proven wrong and starts to roll over from 1330. If the SP500 rolls over here, and what I mean by this is that the SP500 starts to fall below 1325. If this happens you need to close your positions until it’s safe.
So what is it going to take to get over 1340 / 1350? Well it’s going to take a few things. The good news is it is happening in a slow constructive way. Buyers (Mutual Funds) are coming back in. We know this because the bull just will not stall. Even though Volume has been less than great it is still buying. Fed policy is still Equity Positive. Interest rates are low and the Fed is still expanding the US Balance sheet even thought this is very dangerous for our long term monetary policy, because of this, equities are the best investment.
Where should we have our money currently? The Transports are leading the way. Train stocks, CSX, KSU, WAB and UNP are some of the good choices. Heavy Equipment, CAT and DE are moving. Energy too, PBR, RIG RRC, PCX, ACI and KOL. Finally GOLD and SILVER just continue to climb setting new highs it seems every week.
Now, I am not suggesting for you to pile in right here, I haven’t, but you got to have some things working right here from the above choices, which I do. Once the SP500 gets through 1350 on CONVICTION we have blue sky above and that is when it’s time to really get aggressive. Right now I’m optimistically Bullish and waiting with my guns loaded for a push through 1350. I’m currently holding CAT, DE, FCX, SLV, LULU, and F. Wanting to buy WAB, PCX and more SLV.
http://tinyurl.com/3z5pyug
Sunday, March 27, 2011
Fun With The SP500
Tuesday, March 8, 2011
Stuck in a BOX!
SP500, NDX, DOW Team we've been stuck in this box for some time now and who knows if today is a reversal day or not. Still much uncertainty in OMAR / Charlie Sheen land. I'm going to be watching the close pretty close on these up days. If it is starting to get bought, institutional money is starting to come in. Now, as we know DAY ONE dosen't start the trend but volume at the end of the day is going to be the horns in front of the bull when ever it happens.
Saturday, March 5, 2011
Don't just jump in!
One of the biggest mistakes I made when I first started trading is that I didn’t understand the concept of sectors moving together and being in sync with the market. I was just throwing money at any stock I heard on TV or I read about. The reality of this is, STOCK SECTORS MOVE TOGETHER. They follow economic cycles, world news and institutional interest. Let’s start off right and get in sync from day one even before we place a trade. Sectors and markets move together, Industrials follow industrials, chips follow chips, transports follow transports and so on and so on. So we need you to set up a watch list with some of best of breed stocks from each sector that we talked about earlier when evaluating stocks. This watch list is going to have many stocks on it, and each day through your trading platform we are going to know which direction the sectors are moving. We are going to place the IBD top 25 on this list because IBD is a great source of finding the best momentum plays in the market. Earlier we also talked about common themes that you might have heard on any CNBC show. It’s important to watch these shows, CNBC will help you stay in sync with the markets and will also point out possible new plays that you can cross reference with IBD. CNBC stocks go on the list too.
On this watch list there are a few “TICKERS” that I need you to include. These are market following symbols or sector ETFs that will make it easier for you to know what sectors are moving or what is not.
NDX NASDAQ 100 stock group
SP500 Group of 500 stocks that makes up the SP500
DOW 30 30 toP DOW stocks
IYT Transportation ETF
SMH Semi Conductor ETF “TECH”
DBC Commodity ETF
XLF Financial ETF
XRT Retail ETF
GL Gold
SLV Silver
OIH Oil ETF
XLE Energy ETF
These symbols go on the list first. After them put the IBD 25, any stocks you want to follow from CNBC and then any other stocks you want to follow.
IMPORTANT!
When you put the watch list together make sure the column right after the stock symbol is “ % CHANGE “ Sort your stocks from the “BEST” “HIGEST GAINER” to the “WORST” “BIGGEST LOSS”. Each day when you turn on your trading platform the days best performers will already be ranked for you. You will notice this because of the tracking stocks that I gave you above, the sectors will be grouped together and indicate which way the market is headed. Over time you will begin to notice that sectors in motion stay in motion for a period of time. You want to be in the sectors that are moving to the positive. If they are at the bottom of your list, guess what? They are not making you money and you need to be in something different.
IMPORTANT!
The next thing you need to monitor is the SP500 that we put on the watch list. You need to be following stocks that are tracking ABOVE the SP500.
Sym | (%)Chg | Last | ($)Chg |
JDSU | 9.47% | 27.52 | 2.38 |
SLV | 4.53% | 34.93 | 1.52 |
NFLX | 4.15% | 211.8 | 8.43 |
RVBD | 3.68% | 44.5 | 1.58 |
LULU | 2.09% | 77.24 | 1.58 |
PCX | 1.43% | 25.6 | 0.36 |
OPEN | 0.86% | 89.88 | 0.77 |
JNPR | 0.80% | 44.11 | 0.35 |
MU | 0.78% | 11.66 | 0.09 |
DBC | 0.56% | 30.45 | 0.17 |
DECK | 0.53% | 86.7 | 0.46 |
AAPL | 0.13% | 360.01 | 0.45 |
BIDU | 0.00% | 121.85 | 0 |
DE | -0.10% | 92.54 | -0.09 |
IPI | -0.16% | 38.46 | -0.06 |
UNP | -0.19% | 95.36 | -0.18 |
$NDX | -0.50% | 2,359.96 | -11.8 |
NVDA | -0.53% | 20.76 | -0.11 |
SIRI | -0.55% | 1.81 | -0.01 |
ARMH | -0.58% | 29.22 | -0.17 |
CRM | -0.59% | 129.3 | -0.77 |
SMH | -0.63% | 36.46 | -0.23 |
AVGO | -0.64% | 32.79 | -0.21 |
CRUS | -0.68% | 24.81 | -0.17 |
$SPX | -0.74% | 1,321.15 | -9.82 |
SWN | -0.95% | 37.61 | -0.36 |
BAC | -0.98% | 14.13 | -0.14 |
CAT | -1.22% | 102.98 | -1.27 |
JPM | -1.30% | 45.48 | -0.6 |
IYT | -1.33% | 91.48 | -1.23 |
FCX | -1.35% | 51.69 | -0.71 |
CSX | -1.50% | 74.57 | -1.13 |
POT | -1.57% | 61 | -0.97 |
F | -2.10% | 14.45 | -0.31 |
GS | -2.24% | 160.8 | -3.69 |
MS | -3.10% | 28.4 | -0.91 |
XRT | -0.47% | 49.11 | -0.23 |