Anyone that knows me know that neither one of these will be anything significant in the portfolios as both stocks are too thin to load up on. PLPC’s chart is also a bit to volatile to ever gain my acceptance. MFI is a much more tight chart with more max green BOP but it still has its days where it violently sells off intraday and low ticks go through. That is enough to make me want to not load up on this one also. I recommend that newbie traders/investors not take either one of these as they could both offer up a lot of pain if the market sells off. If you do decide you want to play, please, use limit orders only.
new speculative Featured long position: PLPC
PLPC is bouncing off the 50 day moving average and breaking out to a new all-time high from an ascending base, on strong volume. This stock had a very nice previous uptrend from March to July where there was a lot of good daily price action, strong accumulation, and max green BOP. As the stock sold off in July, volume was very low and the selling and bottom in August remained on very low volume, indicating that there was absolutely no distribution in this stock. As it started to rally again, volume remained very low but there were still a few days of clear accumulation in October and November that made it clear someone wanted the stock. Recently, with the tight price action around the 50 day moving average, BOP went green again, along with the RS line putting in a series of much higher lows and highs while the stock based. Today’s breakout came on very strong volume finally confirming all the accumulation and green BOP in the base. The fundamentals are quite strong, with EPS growing between 13% and 153% the past four quarters, sales growing between 4% and 17% the past seven quarters, a ROE of 9%, a cash flow of $3.66 a share, 2% debt, an earnings growth rate of 43%, a timeliness rating of A, a composite rating of 90, an Acc/Dis rating of A-, an SMR rating of C, and an EPS rating of 89. Fund ownership has grown from 17 to 19 to 22 funds the past three quarter, showing that the big money is gaining an interest in this company. Management still owns 54% of the stock clearly showing that they want to have a vested interest in the future profits of this stock. You must use LIMIT ORDERS ONLY, on this stock, as it only averages 4,100 shares traded daily. This is way beyond too thin to ever consider to buy as a market order. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
adding to existing very speculative Featured long position: MFI
MFI is bouncing off the 50 day moving average and breaking out to a new 52-week high from a very long ascending flat-like base, on strong volume. This stock had a wonderful rally from late October last year to the June highs, where the stock made nice gains on strong accumulation with BOP going max green during a couple of periods during the uptrend. Now with it near the end of this long ascending base pattern, BOP has gone max green and stayed that way the past six days and the stock is putting in some very bullish intraday reversals the past two weeks plus. Now that the stock is closing at a new high and is doing it with it closing at its HOD the stock should be ready to run. If not, as you will see at the end of this analysis we have a very close cut loss area. The fundamentals are mixed, with EPS growing between 80% and 300% the past seven quarter, sales growing 3% this quarter after seven quarters of negative growth, a ROE of 7%, a cash flow of $0.39 a share, 0% debt, a sponsorship rating of B, a timeliness rating of C, a composite rating of 71, an Acc/Dis rating of A, an SMR rating of D, and an EPS rating of 75. Fund ownership has grown from 12 funds to 13 the past four quarters which indicates there is not a lot of fresh interest by funds but management still owns 42% of the shares outstanding so it is obvious they believe in the future results that the company will produce. This should be a LIMIT ORDER ONLY as the stock only trades 15,100 shares daily. That is way too thin for market orders. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
