Stocks To Watch: Apple, BlackBerry, United Continental...

by: SA Stocks To Watch


SA contributors highlight stocks investors should be watching for unusual movement, including their bias (long/short), and a brief explanation of why.

Stocks are listed alphabetically in order of their symbols. The author's name can be found after the name of the stock and his/her bias. Click on a contributor's name to read more articles by that contributor.

Authors follow comments actively, so feel free to ask questions in the comment stream.

Once the market opens, you can track how today's "Stocks To Watch" are performing here. To send in your own ideas for Monday's Stocks To Watch, email before 6:00 AM ET Monday.

Apple (NASDAQ:AAPL) – short – Anthony Ruben

  • The Wall Street Journal reports today that China’s state broadcaster called AAPL’s iPhone location-tracking function a “national security concern”.
  • China, where iPhone sales increased 28% last quarter, is the biggest growth driver of AAPL’s most profitable product.
  • Perception that iPhones are frowned upon in China and status conscious users are switching brands may reverse recent positive momentum in AAPL stock.

American Apparel (APP) - short - Bill Maurer

  • Stock rose Thursday after getting financial lifeline.
  • With stock doubling in recent weeks, a chunk of good news was already priced in.
  • Company not out of the woods just yet.

Barracuda Networks (NYSE:CUDA) - long - Bill Maurer

  • Company beat on top and bottom line. Guidance above expectations.
  • Low float stock means more volatility, which could push shares higher.
  • Analysts see further upside.

BlackBerry (NASDAQ:BBRY) – long – Chris Lau (long)

  • Stock firmly beyond its tipping point.
  • News that Germany ousted a top CIA official affirms government entities will demand top security for mobile devices, with BlackBerry the best choice.
  • Firm won the Red Dot Award for high design quality for the Q5, Q10, and Z30 models. Strong bullish action suggests stock will hold $11 and move higher in the next few sessions even with market weakness.

CYNK Technologies (OTC:CYNK) – short – Chris Lau (no position or plans)

  • CYNK clearly a pump and dump stock, simply because issue trades on low volume, and has no revenue or assets.
  • Traded between $9.80 - $21.95 on over ten times average volume on July 10, 2014.
  • Clear short when opportunity arises (few shares or bearish options for shorting available).

Fastenal (NASDAQ:FAST) - long - Brad Kenagy (no position, no plans)

  • Fastenal was down 1.74% with no news, except for the fact that earnings will be reported before the open today.
  • On July 8th William Blair reiterated an outperform rating on shares of Fastenal.
  • Fastenal closed at $48.16, which is only $.04 below its current 200-day moving average at $48.20. With Fastenal reporting earnings before the bell, I believe this breach of the 200-day moving average will only be temporary, and shares will move higher on a positive earnings report.

Foresight Energy Partners (NYSE:FELP) - long - Don Dion

  • The 25-day quiet period on underwriter analyses for FELP will come to an end on July 12, allowing the firm's underwriters to release detailed positive research on July 13.
  • Although FELP has performed inconsistently post-IPO, investors should consider buying into the firm; the anticipation of positive research reports often leads to a price increase two days before publication.
  • Though the long-term outlook for coal is concerning in an era of tightening environmental regulation, coal remains a critical source of power in the United States; and FELP is poised. Additional information here.

Intercept Pharmaceuticals (NASDAQ:ICPT) - long - Bill Maurer

  • Stock bounced Thursday as market rebounded.
  • Shares found support as they got close to 200-day moving average.
  • Another rally in momentum based biotech names could send shares higher.

Lorillard Inc. (NYSE:LO) – long – Chris DeMuth Jr.

  • The British American Tobacco standstill with RAI expires on July 30, 2014.
  • One possibility is for BAT to facilitate RAI buying LO for about $75-80/share.
  • Imperial Tobacco Group could buy divested assets to fix antitrust issues.

Rent-A-Center (NASDAQ:RCII) - short - Bill Maurer

  • Company announced preliminary Q2 revenues and adjusted EPS that missed estimates.
  • Macro-economic pressures continue to burden the company's financially constrained customers.
  • Stock could head towards 52-week low.

Theravance (THRX) – long – Chris Lau (no position)

  • Stock sharply off from an intraday high of almost $32, closing at $28.96.
  • Announced along with its partner GlaxoSmithKline (NYSE:GSK) approval in Australia for ANORO® ELLIPTA®, a drug used to treat COPD (chronic obstructive pulmonary disease).
  • Weak price action over next few days means bullish investors may add to THRX in the low to mid 20s.

United Continental Holdings (NYSE:UAL) – short – Jordan Flannery (no position)

  • After yesterday’s rally of over 12% following the release of the company’s June air traffic statistics, look for shares of UAL to give back some of those gains in today’s trading session.
  • UAL’s June statistics showed a decrease in both domestic and international load factors compared to June 2013 and consolidated revenue passenger miles were flat for the month.