I have 22 consecutive profitable trades of 15% or better. How is this possible? Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. Many of these stocks are still at very reasonable valuations. Afraid of buying stocks at their highs? Think of it this way: a new high is really a future floor for companies with solid financial underpinnings. Quantitative momentum modeling makes it easy to identify stocks that can continue this upward momentum trend. Why does this happen? It's really very simple..ask me about what investors and cows have in common. I am $$$ MR. MARKET $$$. I AM HUGE!!! Bring me your finest meats and cheeses. You can join in on the fun. Register for free and you'll be able to post messages on this forum and also receive emails when $$$ MR. MARKET $$$ makes his own trades. ($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
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MHO Financials: MHO has extremely strong financials with strong and consistent growth in revenue and earnings over the last 10 years with no signs of slowing down. They have met or beaten analyst estimates in 10 for the last 11 quarters. Chart: The chart for MHO has been fairly volatile with a giant pullback at the start of 2020 during which they lost 80% of their market cap. Their ascent back up to the $50+ level has been characterized by long period of sideways stagnation. I’m not sure why the market has reacted to MHO in this way given their stellar financial record, and I’d have to do a deeper dive to figure it out. Part of it could have been a reaction to the real estate market as a whole. In any event, the chart is a cautionary tale, characterized my super step pullbacks and long periods of stagnation. Overall Grade: B-
MVBF Financials: MVBF has done well over the last 10 years, although revenue appeared a little down for FY 2020. Despite the pullback in revenue, however, MVBF’s earnings for 2020 were up significantly, showing 139% growth, year-over-year. MVBF has exceeded analysts estimates in 7 of the last 8 quarters, which is always a good indicator of growth, something the marker often puts a premium on. Chart: MVBF’s share price growth was a modest, but successful story from 2013 through 2019. At the start of 2020, MVBF lost 70% of its market cap, however. The story forward from there has been spectacular as the stock rocketed to a new high and then some, where it currently sits. The stock is currently basing at the high, and if you squint, you can kind of see a little bit of a cup and handle pattern. The bottom line is that this stock has been in a consistent uptrend since early 2020, and despite a few topping tales in recent bars, does look poised to move higher. I do have one big charting concern with MVBF, however. The average daily volume is only about 57,000 shares a days, which is pretty thin. It’s not thin enough to keep me from trading it, but thinly traded stock can sometimes make radical movements over the slightest piece of news. Overall Grade: A-
SNX Financials: SNX revenue growth has been modest, though consistent, since a bit of a hiccup in 2015. Earnings growth has been similarly consistent, with a hiccup in 2018. SNX has beat analyst estimates in 23 straight quarters, an extremely impressive streak. Chart: Since early 2020, SNX has been on an impressive streak, experiencing a 310% increase in market cap. This uptrend has been characterized by consistent upward movement with very modest occasional pullbacks. The share price is currently a little extended to the upside from it’s moving averages, so it might be best to delay entry until it consolidates at the high or pulls back a little, but it sure looks like a stock that is headed higher. Overall Grade: A-
TPX Financials: TPX experienced a bit of a hiccup in it revenue growth in 2018 and 2019, experiencing a significant dip in earnings as well. Since then, revenue growth has been solid and earnings growth has been spectacular. TPX has beaten analyst estimates in 8 straight quarters, with a spectacular beat 3 quarters ago. Before that, however, TPX missed for 5 straight quarters which is a little concerning. Chart: TPX seemed to experience the same significant correction in early 2020 that the other candidates did. Like SNX and MVBF, however, it started a new uptrend in the second quarter of 2020 that has seen its market cap increase a spectacular 694%. The stock is currently basing at the high, which provides a decent entry and look poised to go higher. Overall Grade: A-
Overall, with volume concerns aside, I would say that MVBF is my favorite, but SNX and TPX are both attractive too. I think you would need to be careful about your entry into SNX unless draw down doesn’t bother you. Despite its solid financials, MHO’s chart just doesn’t make it a very attractive candidate for me. I didn’t know what to say about BOG, which I think is an incorrect symbol.
TPX and MVBF sure are shooting through the sky right now - catching either of them will give you the quickest 15%... IF they keep it up, which is not necessarily a given. I like SNX as a safe(r) bet. They're also on a good trajectory, and in the right sector to keep it up, regardless of whatever COVID is doing at the moment. I'm not a BIG fan of MHO, but I do go to BIG Lots, so... you could do worse than going BIG.
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