Top 10 List as of 04/19/2013

Written by MichaelGLamothe on . Posted in Top 10 List

Even though the market is presently in correction, it’s still important, perhaps even more important, to keep our watch lists fresh.  Market corrections are what provide the best stocks the opportunity to form fresh bases.  When the uptrend resumes, we will need to be Johnny on the Spot as stocks start to break out. The new leaders will typically be the first to breakout.   A new uptrend is always potentially 4 days away (initial rally + a 4th day follow through day).  We must always be flexible in our ideas.

There are some highly rated stocks in the Top 10 this week and there are also several highly rated stocks pulling back to the 10wk line (see Ready List Stocks Not in the “Top 10″ as of 4/19/2013).  The average rating of stocks in this week’s Top 10 list is 9.34 up from 8.93 last week.  That’s quite a jump.  

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
1 10.4

WETF

WETF Weekly 04-19-13

Wisdomtree Investments 04-27-2013

BASE/CHART: WETF is presently working on a 1st stage ascending base that is 10wks long w/ pull backs of 15%, 9%, & 11%.  The pivot is $11.39.  There is tightness in the base and it has gotten support all along the 10wk line.  The RS line is near it’s highs & the RS rating is 93.  10 so far.

EARNINGS: annual earnings are estimated to rise 236% this year. The eps growth rate, earnings stability, and ROE are all n/a.  Pre-tax margins are below 18% (-.1) Quarterly EPS & sales are outstanding and accelerating (+.5) 10.4 so far.

GROUP: currently ranked 34

OWNERSHIP: fund ownership has risen the past 2 quarters.  Mgt holds 35% of shares and there are 3 top funds in WETF.

OVERALL: 10.4

 

2 10

URI

URI Weekly 04-19-13

United Rentals Inc 07-17-2013

BASE/CHART: URI attempted to b/o of a 2nd stage flat base which is 7wks long, 15% deep, w/ a $56.87 pivot 2wks ago, but it failed & tripped the 8% sell rule. It closed this week 9% below the pivot on HV but it closed 40% above the bottom of its weekly range. This is considered a sign of support. There are 4wks down vs 3wks up in the base (-.25).  HOWEVER, each down week has shown signs of support either closing in the mid to upper half of the range or pulling back to the 10wk on low vol. The RS line trending up and the RS rating is 86. 9.75 so far.

EARNINGS: annual earnings are estimated to rise 32% this year. The EPS growth rate and earnings stability ratings are n/a but the ROE is 42%, very strong. Quarterly EPS & sales are strong and quarterly EPS are accelerating (+.25) 10 so far.

GROUP: currently ranked 12

OWNERSHIP: fund ownership has risen for 7 straight quarters.  Mgt holds 1% of shares & there are 2 top funds in URI. 

OVERALL: 10

 

3 9.55

CVRR

 CVRR Weekly 04-14-13

C V R Refining LP 05-01-2013

BASE/CHART: CVRR broke out of an IPO base 5 weeks ago that was 4wks long and 12% deep.  It has since fallen back below the $32.25 pivot, closed below the 10wk line, & nearly tripped the 8% sell rule. The base has 3wks down vs 1wk up (-.25) but the down weeks finished in the middle of their ranges. The RS line turned up slightly this week and the RS rating is 85. 9.75 so far.

EARNINGS: annual earnings are estimated to rise 66% this year. The EPS growth rate is outstanding at 183%.  The ROE is n/a and the earnings stability rating is 60 (-.2). Quarterly sales are strong and accelerating (+.25) but earnings are erratic and declined in the most recent quarter (-.25) 9.55 so far.

GROUP: currently ranked 28

OWNERSHIP: Since CVRR is a recent IPO, there is no trend in fund ownership.  Mgt holds 82% of shares.

OVERALL: 9.55

 

4 9.3

INGR

INGR Weekly 04-19-13

Ingredion Inc 05-02-2013

BASE/CHART: INGR broke out of a 2nd stage cup w/ handle that is 8wks long, 11% deep, w/ a 6% handle. The b/o was on low vol. It has now formed a 3wks tight & though this week was down, it finished in the top half of its range.  The base has 3wks down and 5wks up.  There is tightness in the base & support throughout.  However, handles should form in low vol & INGR formed in HV (-.25)  The RS line is trending higher and the RS rating is 85.  9.75 so far.

EARNINGS: annual earnings are estimated to rise 5% this year (-.25)  The EPS growth rate is 16% (-.15), the earnings stability rating is 23, and the ROE is 19% which is strong.  Quarterly EPS is strong & accelerating (+.25) but quarterly sales are well below the 25% I look for (-.25)  9.35 so far.

GROUP: currently 11, still 9.35

OWNERSHIP: fund ownership has risen the past 3 quarters.  Management holds 1% of shares and there are no top funds in INGR (-.05) 

OVERALL: 9.3

 

5 9.15

WDC

WDC Weekly 04-19-13

Western Digital Corp 04-24-2013

BASE/CHART: WDC is a good example of a character change in a chart. Notice how it was wide & loose for a very long time & now it has tightened up. The most recent base is a 1st stage flat base that is 5wks long, 10% deep, w/ a $49.50 pivot. There are 3wks up & 2wks down. WDC has gotten good support near the 10wk line. The RS line is moving up and the RS rating is 88.  10 so far.

EARNINGS: annual earnings are estimated to drop 7% this year (-.25) The EPS growth rate is a little low at 18% (-.15) The earnings stability is also a little high at 34 (-.2) but the ROE is strong at 32%. Quarterly EPS and sales are very strong. 9.4 so far

GROUP: currently ranked 49 (-.25) brings us to 9.15

OWNERSHIP: fund ownership has risen for the past 5 quarters.  Mgt holds 1% of shares and there are 2 top funds in WDC. 

OVERALL: 9.15

 

6 9.05

SNI

SNI Weekly 04-14-13

Scripps Ntwrks Intr Cl A 05-02-2013

BASE/CHART: SNI formed and broke out of a 1st stage saucer w/ handle that is 21wks long, 16% deep, w/ a 3% handle.  The pivot is $65.71.  There are 11wks up and 10wks down. The heaviest volume in the base came on a down week (2/8) but it closed in the top half of it’s range which is a sign of support.  The RS line has been relatively flat since May of last year but appears to be turning up. The RS rating is 80 .  10 so far.

EARNINGS: annual earnings are estimated to rise 10% this year (-.25)  The eps growth rate is 17% (-.15) but the earnings stability of 6 and the ROE of 29% is strong.  Quarterly EPS and sales are lower than the 25% I look for (-.5)  9.1 so far.

GROUP: currently ranked 22, still a 9.1

OWNERSHIP: fund ownership has risen the past 5 quarters.  Mgt holds 29% of shares.  There are no top funds in SNI: (-.05)

OVERALL: 9.05

 

7 9.05

DORM

DORM Weekly 04-14-13

Dorman Products Inc 04-29-2013

BASE/CHART: Right off the bat, (-.2) for being thinly traded (under 400k shares/day)  DORM has formed a 1st stage flat base that is 9wks long, 15% deep, and has a pivot at $38.45  There is a strong shakeout on the left side of the base below the 10wk line. since then DORM has recovered and received support at the 10wk line. This week, DORM had another shakeout below the 10wk line but closed the week in 46% of the weekly range, another sign of support. There are more up weeks than down weeks (-.25) The RS line is flattening out but the RS rating is 86. 9.55 so far.

EARNINGS: annual earnings are estimated to rise 20% this year (-.25) The EPS growth rate, ROE and earnings stability ratings are all very strong.  Quarterly EPS and sales both slowed in the most recent quarter (-.5) 9.05 so far.

GROUP: currently ranked 39.  Still 9.05

OWNERSHIP: fund ownership has  risen for 7 straight quarters. Mgt holds 17% of shares.  There is 1 top fund in DORM. 

OVERALL: 9.05

 

8 9

GRFS

GRFS Weekly 04-19-13

Grifols Sa Ads 04-24-2013

BASE/CHART: GRFS is presently working on a 2nd stage flat base that is 5wks long, 10% deep, w/ a $31.03 pivot.  There are 2wks up & 3wks down.  (-.25)  As GRFS has moved up, the down wks appear to have stronger vol while the up weeks have weaker vol. I’m not taking pts off but this is something to be aware of. The RS line is close to all time highs and the RS rating is 94. 9.75 so far.

EARNINGS: annual earnings are n/a this year, not sure why (-.25).  The EPS growth rate is 10% (-.15), the earnings stability rating is 15, and the ROE is n/a.  Quarterly EPS is strong and accelerating (+.25) but quarterly sales are low (-.25)  9.35 so far

GROUP: currently ranked 57 (-.25) takes us down to 9.1

OWNERSHIP: fund ownership has risen for 3 straight quarters. There is 1 top fund in GRFS.  Mgt ownership is n/a (-.1)

OVERALL: 9

 

9 8.95

SODA

 SODA Weekly 04-19-13

Sodastream Intl Ltd 05-06-2013

BASE/CHART: SODA b/o of a 2nd stage double bottom w/ handle that is 9wks long, 16% deep, w/ an approx 6% handle & failed.  The pivot is at $50.46  Another pivot is at $52.67 There are 3wks down and 6wks up.  The down week of 2/1 closed in middle of range and the down week of 2/22 closed near 10wk line.  There is a big dry-up in vol in the handle. The RS line is holding up & the RS rating is 86 10 so far.

EARNINGS: annual earnings are estimated to rise 3% this year (-.25).  The EPS growth rate is great at 158% but the earnings stability rating is poor at 75 (-.2) and the ROE is just below the 17% I look for (currently 15%) (-.1)   Quarterly earnings and sales, however, are both well above the 25% min I look for. 9.45 so far.

GROUP: currently ranked 27.  Still 9.45  

OWNERSHIP: fund ownership has been inconsistent and actually declined the last 2 quarters (-.5)  Mgt holds 7% of shares and there are 2 top funds in SODA.

OVERALL: 8.95

 

10 8.95

FAF

FAF Weekly 04-19-13

First American Finl Corp 04-25-2013

BASE/CHART: FAF broke out of a 2nd stage cup w/ handle that is 7wks long, 12% deep, and has a 6% handle.  The pivot is at $25.11 The base has formed along the 10wk line and it appears to have bounced off that level last week.  The RS line has turned up and the RS rating is 85.  10 so far.

EARNINGS: annual earnings are estimated to drop 25% this year (-.25) the EPS growth rate is strong at 72% but the earnings stability rating is 99 and the ROE is 14% (-.3)  Quarterly earnings and sales are strong and quarterly sales have accelerated (+.25) 9.7 so far.

GROUP: currently ranked 84 (-.75) brings us to 8.95

OWNERSHIP: fund ownership has risen for the last 4 quarters.  There is 1 top fund in FAF and mgt holds 5% of shares. 

OVERALL: 8.95

 

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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