Ready List Stocks not in the “Top 10″ as of 04/19/2013

Written by MichaelGLamothe on . Posted in Ready List

Of the 37 stocks that made it onto the ready list, 16 were automatically cut due to their industry group being below 125, their AD rating being below a C-, or their RS rating being below 70.  I consider that a significant amount of merchandise that is setting up but has fatal flaws that would deter me from giving them a second thought this week.  It could be indicative of a market that has seen a trend change and is seeing greater distribution. 

The 5 stocks below that didn’t make the cut to be in the “Top 10″ this week all have ratings lower than 9.  Each week I try to flush out as many flaws in a stock as I can find.  Flaws do not mean that a stock can’t or won’t go up, but it does mean that the probabilities are less in our favor.  

The stocks highlighted in blue below are all stocks that are pulling back to the 10 week line or are setting up in 3 weeks tight patterns.  I generally prefer to buy stocks as that break out of primary bases, but I’ve highlighted these stocks here as some of the best that are offering these secondary buying opportunities.  With the market currently in correction, however, it’s prudent not to make any new buys and to wait for a follow through day.

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

GOOG

GOOG Weekly 04-19-13

Google Inc 07-19-2013

BASE/CHART: GOOG is presently working on a 1st stage flat base that is 6wks long, 10% deep, and has a $844 pivot. There are 4wks down & 2wks up so far (-.25) GOOG just formed a 3wks tight enar the bottom of the base, which is constructive, and this week closed near the top of it’s range on the highest vol in the base.  The RS line is moving up and the RS rating is 83. 9.75 so far.

EARNINGS: annual earnings are estimated to rise 14% this year (-.25) The EPS growth rate is 21% (-.15) The earnings stability rating is 4 and the ROE is 20%, both strong.  The quarterly EPS are lower than the 25% I like to see, but have accelerated so I’ll call it a wash. Quarterly sales are strong. 9.35 so far.

GROUP: currently ranked 24

OWNERSHIP: fund ownership has risen the past 4 quarters. Mgt holds 0% of shares (-.5) and there are 11 top funds in GOOG.

OVERALL: 8.85

 

12 8.5

EMN

EMN Weekly 04-19-13

Eastman Chemical Co 04-22-2013

BASE/CHART: EMN is working on a 2nd stage flat base that is 9wks long, 13% deep, and has a $75.18 pivot.  There are 3wks up and 6wks down (-.25).  6wks of the base are below the 10wk line so far (-.5)  The RS line is in tact and the RS rating is 80.  9.25 so far.

EARNINGS: annual earnings are estimated to rise 19% this year (-.25) The EPS growth rate is okay at 23% the earnings stability rating is okay at 31 and the ROE is strong at 33%. Quarterly EPS and sales are strong and have accelerated over the past few quarters (+.5).  9.5 so far.

GROUP: currently ranked 112 (-1) takes us to 8.5

OWNERSHIP: fund ownership has risen for 6 straight quarters. Mgt holds 1% of shares and there are 2 top funds in EMN. 

OVERALL: 8.5

 

13 8.45

RJF

RJF Weekly 04-19-13

Raymond James Financial 04-25-2013

BASE/CHART: RJF is working on a 3rd stage (-.25) flat base that is 5wks long, 10% deep, and has a $48.22 pivot.  There are 3wks down and 2wks up in the base (-.25) Down weeks have come in greater vol so far. It will be important to see that trend change. The RS line okay and the RS rating of 77 needs to improve prior to b/o.  9.5 so far.

EARNINGS: annual earnings are estimated to rise 24% this year (-.25) The EPS growth rate is 8% (-.15), earnings stability is 23, and ROE is 11% (-.1).  Quarterly EPS and sales are strong and quarterly sales are accelerating (+.25) 9.25 so far.

GROUP: currently ranked 89 (-.75) takes us down to 8.5

OWNERSHIP: fund ownership has increased the past 3 quarters.  Mgt holds 13% of shares but there are no top funds in RJF (-.05)

OVERALL: 8.45 

 

14 8.45

RMD

RMD Weekly 04-14-13

Resmed Inc 04-25-2013

BASE/CHART: RMD is working on a 2nd stage cup w/ handle that is 12wks long, 13% deep, and has a 6% handle.  There are 6wks down vs 6 wks up.  A 4wks tight formed at the bottom of the base, a sign of support.  The RS line needs to recover prior to breaking out and the RS rating of 79 needs to improve as well.  10 so far.

EARNINGS: annual earnings are estimated to rise 17% this year (-.25) The EPS growth rate is strong at 26%, the earnings stability is good at 8, and the ROE is strong at 17%.  Quarterly EPS is strong but quarterly sales fall below the 25%+ I look for (-.25) 9.5 so far.

GROUP:  currently ranked 115 (-1) takes us down to 8.5

OWNERSHIP: fund ownership has risen the past 5 quarters.  Mgt holds 6% of shares but there are no top funds in RMD (-.05)

OVERALL: 8.45

 

15 8.3

QIHU

QIHU Weekly 04-19-13

Qihoo 360 Technology Ads 05-23-2013

BASE/CHART: QIHU is presently working on a 2nd stage cup that is 6wks long, 20% deep, and has a $34.90 pivot. There are 4wks up and 2wks down. There is a strong shakeout below the 10wk line on the left side of the base and vol is rising on the rt side of the base. 4 of 6 wks are below the 10wk line (-.5)  The RS line has turned up and the RS rating is 93. 9.5 so far.

EARNINGS: annual earnings are estimated to rise 25% this year. The EPS growth rate is superb at 292%. The earnings stability rating is poor at 57 (-.2) and the ROE is strong at 23%. Quarterly EPS is weak and decelerating the past several quarters (-.5).  Quarterly sales are strong. 8.8 so far.

GROUP: currently ranked 80 (-.5) takes us to 8.3

OWNERSHIP: fund ownership has risen for 3 straight quarters. Mgt holds 54% of shares & there is 1 top fund in QIHU.

OVERALL: 8.3

 

   

LNKD

LNKD Weekly 04-19-13 

Linkedin Corp Class A 05-02-2013 pullback to the 10wk line
   

TRIP

TRIP Weekly 04-19-13

TripAdvisor Inc 05-07-2013 pullback to the 10wk line
   

PRIM

PRIM Weekly 04-19-13

Primoris Services Corp 05-09-2013 pullback to the 10wk line
   

PIKE

PIKE weekly 04-19-13 

Pike Electric Corp 05-06-2013 pullback to the 10wk line
   

EGOV

EGOV Weekly 04-19-13

N I C Inc 05-06-2013 pullback to the 10wk line
   

LL

LL Weekly 04-19-13

Lumber Liquidators Hldgs 04-24-2013 pullback to the 10wk line + 3wks tight
n/a n/a GEL Genesis Energy Lp 05-02-2013 Removed from Ready List due to A/D rating below C
n/a n/a MELI Mercadolibre Inc 05-08-2013 Removed from Ready List due to RS rating below 70
n/a n/a IPGP I P G Photonics Corp 04-29-2013 Removed from Ready List due to RS rating below 70
n/a n/a UTHR United Therapeutics Corp 04-25-2013 Removed from Ready List due to A/D rating below C
n/a n/a DNKN Dunkin’ Brands Group Inc 04-25-2013 Removed from Ready List due to A/D rating below C
n/a n/a ARMH A R M Holdings Plc Ads 04-23-2013 Removed from Ready List due to A/D rating below C
n/a n/a EXR Extra Space Storage Inc 04-29-2013 Removed from Ready List due to A/D rating below C
n/a n/a AFSI Amtrust Financial Svcs 05-01-2013 Removed from Ready List due to A/D rating below C
n/a n/a PII Polaris Industries Inc 04-23-2013 Removed from Ready List due to Industry Group Rank below 125
n/a n/a FLT Fleetcor Technologies 05-06-2013 Removed from Ready List due to Industry Group Rank below 125
n/a n/a V Visa Inc Cl A 05-01-2013 Removed from Ready List due to Industry Group Rank below 125
n/a n/a MA Mastercard Inc Cl A 05-01-2013 Removed from Ready List due to Industry Group Rank below 125
n/a n/a N Netsuite Inc 04-25-2013 Removed from Ready List due to Industry Group Rank below 125
n/a n/a MYL Mylan Inc 05-02-2013 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 RYL Ryland Group 04-24-2013 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

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MichaelGLamothe

Founder of ChartYourTrade.com

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