Posts Tagged "bottom picking"

We are always on the lookout for overly beaten down stocks with daily charts resembling rocks falling off a cliff. Sometimes they make prime picks for bottom picking, assuming the only reason they are going down is because a huge fund is just liquidating its stake. An example of this is the stock $RRD (RR Donnelley & Sons). It has been trending down since its February 28th decent earnings release and in-line forward guidance forecast,...

Negative European car rental outlooks yesterday from Avis ($CAR stock) sent rival Hertz Global ($HTZ stock) stock tumbling -15% in 2 days. After an unsuccessful bottom pick yesterday, we decided to give it another try today as we felt Hertz is a value buy based off comparing their eps growth rate and forward p/e ratio. Their eps growth rate is around double their forward p/e ratio making it a fundamental buy. When the tape told us...

Today Monotype Imaging ($TYPE stock) announced a dilutive acquisition of $150M. Stock got slammed late in the day -31% at the intraday lows. We starting bottom picking this name in the $19's. Sellers were being very aggressive and eventually slammed the stock down to $17's in 5 minutes. We took this opportunity to load up and rode the stock back up as we believed the extreme weakness was way overdone. Even an analyst Ladenburg...

Biotech bloodbath was the theme of today's trading session! $VRX (Valeant Pharmaceuticals stock) provided disastrous forward guidance and analysts on the street still questioned the company's business model. We told all our paying stock chatroom members before the market open to be extremely careful with trading $VRX today. Only scalp it on bottom picks and do not try and ride it and be the hero to call the dead bottom. $VRX was...

The biggest loser the past 2 days in the stock market is $OCN (Ocwen Financial Corp stock). It was $6.15 three days ago and slow-deathed all the way down to a low of $2.06! The decline happened over 2 days on notice of new SEC investigations into the company's business. We are not long term buyers of the stock but will bottom pick it for long daytrade scalps due to its volatility. Traded it 3 times for a cool +$2,621 profit. We used...