The Tax Cut Top 5

[mrmarket]

Here are my 5 favorite picks from the most recent data dump:

EDUC FMAO HTHT NVR PETS

I will buy one of these stocks soon....which one do you like...and why?

[Vixtt]

HTHT's chart is right up my alley

[tiedyed1]

I am not familiar with any of these, but upon a quick look:

EDUC: educational books are always needed, but the debt here scares me and technology is directing students young and old to alternative forms of education. I'll pass.

FMAO: this regional bank has done well in 2017, but when I put the chart next to big banks I also feel it may have gotten ahead of itself. Consensus is rates are rising in 2018 which will help all banks. Just not sure if this one has already blasted off and factored in. Very low volume can bring a quick 15% move (up or down).

HTHT: I am liking the long term big cap prospects for China over the next few years. There are stats that indicate China will take the US #1 economy spot by 2025 due to the massive rising middle class emerging. I was considering entering a long term China position and this may be a good one when having 3+ years in focus. Not sure about it being the Mr. Market short term for 15% pick, but i like it.

NVR: cannot buy many shares, but home builders are in a good place on the East Coast due to lack of inventory. Will rising interest rates slow home sales? They may, but I if rates move from 4% to 5% by end of next year I still see homebuyers needing homes and lack of inventory.

PETS: great industry; everyone loves their pets and spends money on them without hesitation. I am not sure why there is such a large short position on this stock and need to do more research, but this company is growing and will also eventually get scooped up like chewy.com did. Big industry and new pet owners will turn to companies like this, so I imagine they will continue to gain new customers at a nice pace - and can easily expand the product line when needed. I have also found that Amazon is just too big to assure fresh dog food and supplies and personally purchase my dog's food and supplies from specialized companies like chewy.com and petmedexpress (PETS).

After all of this I think my 15% in shortest time will be either PETS or HTHT.

Happy New Year to all!

[billyjoe]

According to my research, NVR is grossly undervalued at 3511 and has a P/E lower than its peers. One awesome stock.

--------------billy

[tiedyed1]

According to my research, NVR is grossly undervalued at 3511 and has a P/E lower than its peers. One awesome stock.

--------------billy

Hi Billy; I was just reading deeper within NVR's website and in addition to growth and nice backlog they will also greatly benefit with the 2018 corporate tax reduction.

Net income and diluted earnings per share were favorably impacted by the reduction in the Company's effective tax rate for the three and nine months ended September 30, 2017 to 33.7% and 29.5%, respectively, compared to 36.5% and 36.6% for the three and nine months ended September 30, 2016, respectively.

Reading more it does indeed appear to be a powerhouse of a Company and gotta love that chart. Nice pick!

[Vixtt]

HTHT up 12% since the top five were posted. Chart looked ripe for the breakout

[tiedyed1]

HTHT up 12% since the top five were posted. Chart looked ripe for the breakout

Good pick with HTHT Vixtt. I never have the time but i always wonder what back testing a scenario of all five (5) top picks would look like and seeing how they fare.
One pick hitting 15% is great; but there are obviously other worthwhile picks in that Top 5 too!