Ready List Stocks not in the “Top 10″ as of 03/30/2013

Written by MichaelGLamothe on . Posted in Ready List

As mentioned in the “Top 10″ post this week, I’ve elected to include stocks pulling back to the 10wk line and stocks setting up in 3wk tight patterns this week.  I’ve observed that many of the leading stocks have simply continued their runs whereas stocks setting up in bases have yet to have very many strong breakouts.  It’s important not to chase and not to buy too early.  What’s most important is buying at the right time and the chart will tell us when the “right time” is based on price and volume.  For me, the “right time” is when a stock breaks out of a consolidation pattern on high volume (40% or better).  The patterns that I look for are found in the education section of Investors.com.  Sharptraders.com is also a great resource in this regard.

The average rating of stocks outside the top 10 stayed the same as last week at 8.9  Overall, however, the breadth of stocks setting up in patterns seems to have widened slightly and the Top 10 have grown stronger as far as overall rating is concerned.  The State of the Market tells a story of a tight rope walker as the market is balancing nearly equally with reasons for it to continue and reasons for it to correct.  Which path do we follow?  The one the market provides us.

None of these stocks or ratings should be misconstrued as recommendations to buy, sell, or hold.  They are presented here for educational and demonstrative purposes only.  All ratings are based on my Stock Evaluation Guide and the charts/data provided by MarketSmith

Rank Rating Symbol Name EPS Due Date Notes
11 8.85 HCA H C A Holdings Inc 04-29-2013

BASE/CHART: HCA has formed a 2nd stage cup that is 6wks long (-.25 should be at least 7wks prior to initial b/o) 12% deep, and has a $39.60 pivot.  There are 3wks down and 3wks up. Vol declined as price reached the 10wk and rose higher after lifting off the 10wk. However, vol declined as HCA climbed the rt side of the base. (-.1)  The RS line, however is very strong and moving into new high ground the RS rating is at 93.  9.65 so far.

EARNINGS: annual earnings are estimated to decline 14% this year (-.25) The EPS growth rate is 31% and the earnings stability rating is 14, both are strong.  The ROE is n/a.  Quarterly earnings and sales are weak, falling in the most recent quarter (-.5)  8.9 so far. 

GROUP: currently ranked 7

OWNERSHIP: fund ownership has risen for 5 quarters.  Management holds 3% of shares but there are no top funds in HCA (-.05) 

OVERALL: 8.85

 

12 8.85 NSR Neustar Inc 04-26-2013

BASE/CHART: NSR is presently working on a 1st stage flat base that is 7wks long, 10% deep and has a $47.24 pivot.  There are 5wks down and 2wk up (-.25).  Throughout the base NSR has managed to find support near the 10wk line and has just formed a 3wk tight..  The RS line is turning up but needs a little more work prior to breakout and the RS rating is only 77.  I’d want to see this climb to at least 80 by the time it breaks out.  9.75 so far.

EARNINGS: annual earnings are estimated to rise 10% this year (-.25).  The EPS growth rate is 18% (I look for 25% or greater) (-.15) but the ROE is strong at 36% and the earnings stability rating is good at 10.  Quarterly EPS and sales are strong.  9.35 so far.

GROUP: currently ranked 40

OWNERSHIP: fund ownership decelerated slightly in the most recent quarter (-.5).  There is 1 top fund in NSR and mgt holds 2% of shares.

OVERALL: 8.85

 

13 7.95 RMD Resmed Inc 04-26-2013

BASE/CHART: RMD is working on a 2nd stage flat base that is 9wks long, 13% deep, and has a $48.47 pivot.  There are 4wks down and 5wks up so far. 6 of the 9 weeks, however, were formed below the 10wk (-.5) The RS line appears to beginning to rise and the RS rating is 84.  9.5 so far.

EARNINGS: annual earnings are estimated to rise 17% this year (-.25) The EPS growth rate is 26%, the ROE is 17% and the earnings stability rating is 8, all good.  Quarterly earnings are good but quarterly sales fall short of the 25% I look for (-.25) 9 so far.

GROUP: currently 124 (-1) takes us down to 8.

OWNERSHIP: fund ownership has increased the past 3 quarters.  Mgt holds 6% of shares but there are no top funds in RMD (-.05)

OVERALL: 7.95

 

14 7.85 IPGP I P G Photonics Corp 04-29-2013

BASE/CHART: IPGP is presently working on a 1st stage cup that is 7wks long, 19% deep, and has a $70.11 pivot.  There are 4wks up and 5wks down.  The left side of the base has a heavy shakeout below the 10wk line.  The right side of the base has risen on progressively lighter vol (-.2).  The RS line has essentially gone no where in the past year although it appears to be turning up.  The RS rating of 74 must improve prior to breakout.  9.8 so far.

EARNINGS: annual earnings are estimated to rise 12% this year (-.25).  The EPS growth rate of 48% and ROE of 24% are very strong but the earnings stability rating is a worst possible 99 (-.2) Quarterly earnings and sales decelerated the last quarter and both are well below the 25% min I look for.  (-.5) 8.85 so far.

GROUP: currently ranked 106 (-1) brings us down to 7.85

OWNERSHIP: fund ownership has risen for 7 straight quarters. Mgt holds 38% of shares and there are 4 top funds in IPGP. 

OVERALL: 7.85

 

15 7.5 V Visa Inc Cl A 05-01-2013

BASE/CHART: V has formed a 3rd stage (-.25) flat base that is 10wks long, 5% deep and has a 162.77 pivot.  It has formed a 5wks tight in the base and has held the 10wk line throughout the base.  There are 5wks up vs 5wks down.  The RS line is rising and the RS rating is 82.  9.75 so far.

EARNINGS: annual earnings are estimated to rise 18% this year (-.25)  The EPS growth rate, earnings stability rating, and ROE are all strong.    Quarterly EPS and Sales are slightly below the 25% levels I look for.  (-.5). 9 so far.

GROUP: currently ranked 123 (-1)  8 so far.

OWNERSHIP: fund ownership has risen for 7 straight quarters.  There are 5 top funds in V but management holds 0% of shares (-.5)

OVERALL: 7.5

 

16 7.15 MA Mastercard Inc Cl A 05-01-2013

BASE/CHART: MA has formed another 3rd stage (-.25) flat base that is 8wks long, 5% deep, and has a $535.35 pivot.  It is considered another 3rd stage base because it did not rise 20% or greater from the previous base so the count remains the same.  There are 5wks down vs 3wks up. (-25) The RS line is rising overall but the RS rating needs to improve. It’s currently 73 (-.1)  9.4 so far.

EARNINGS: annual earnings are estimated to rise 15% this year. (-.25) The EPS growth rate, earnings stability rating, and ROE are all strong.  Quarterly EPS and sales, however, both fall below the 25% I look for (-.5) 8.65 so far.

GROUP: currently 123 (-1) takes us down to 7.65

OWNERSHIP: fund ownership rose last quarter.  There are 10 top funds in MA but management holds 0% of shares.  (-.5)

OVERALL: 7.15

 

    SNTS Santarus Inc 05-08-2013 poss 3wk tight
    TRIP TripAdvisor Inc 05-01-2013 3 weeks tight
    EVR Evercore Partners Inc 04-26-2013 10wk
    MTZ Mastec Inc 05-01-2013 10wk
    GOOG Google Inc 04-12-2013 10wk
    OCN Ocwen Financial Corp 04-29-2013 10wk
    NSM Nationstar Mtg Hldgs Inc 05-15-2013 10wk
n/a n/a SNI Scripps Ntwrks Intr Cl A 04-29-2013 Removed from Ready List due to RS rating below 70
n/a n/a DNKN Dunkin’ Brands Group Inc 04-26-2013 Removed from Ready List due to RS rating below 70
n/a n/a EMN Eastman Chemical Co 04-22-2013 Removed from Ready List due to A/D rating below C
n/a n/a EXR Extra Space Storage Inc 04-30-2013 Removed from Ready List due to A/D rating below C
n/a n/a PII Polaris Industries Inc 04-18-2013 Removed from Ready List due to A/D rating below C
n/a n/a CTRX Catamaran Corp 05-03-2013 Removed from Ready List due to Industry Group Rank below 125
n/a n/a LOPE Grand Canyon Education 05-06-2013 Removed from Ready List due to Industry Group Rank below 125
n/a n/a CVLT Commvault Systems Inc 05-06-2013 Removed from Ready List due to Industry Group Rank below 125
n/a n/a SWI Solarwinds Inc 04-26-2013 Removed from Ready List due to Industry Group Rank below 125

None of these stocks or ratings should be misconstrued as recommendations to buy, sell, or hold.  They are presented here for educational and demonstrative purposes only.  All ratings are based on my Stock Evaluation Guide and the charts/data provided by MarketSmith

MichaelGLamothe

Founder of ChartYourTrade.com

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