Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

If you're looking for momentum ideas, the following list might offer an interesting starting point.

Here we present 7 stocks that have recently exhibited bullish Daily MACD Line(12,26,9) crossovers. These companies are also sitting on relatively large holdings of cash: all 7 companies listed below have enough cash to cover more than 4 quarters of their avg. quarterly operating expense.

Are these rebounds sustainable? Read below, using this list as a starting-off point for your own analysis.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

List sorted by cash/avg. quarterly operating expense.

1. ZIOPHARM Oncology, Inc. (NASDAQ:ZIOP): Biotechnology Industry. Market cap of $399.10M. Daily MACD Line(12,26,9) at 0.017.

Current cash holdings at $60.39M vs. average quarterly operating expenses over the last four quarters at $6.14M. Cash/Avg. Quarterly Operating Expenses at 9.8, i.e. the company can go 9.8 quarters without generating revenue and still cover the average quarterly operating costs.

ZIOP is a short squeeze candidate, with a short float at 8.72% (equivalent to 6.1 days of average volume). The stock has also had a couple of great days, gaining 5.02% over the last week.

2. Franklin Resources Inc. (NYSE:BEN): Asset Management Industry. Market cap of $27.03B. Daily MACD Line(12,26,9) at -1.223.

Current cash holdings at $5.87B vs. average quarterly operating expenses over the last four quarters at $1.01B. Cash/Avg. Quarterly Operating Expenses at 5.8, i.e. the company can go 5.8 quarters without generating revenue and still cover the average quarterly operating costs.

3. Apollo Investment Corporation (NASDAQ:AINV): Diversified Investments Industry. Market cap of $2.31B. Daily MACD Line(12,26,9) at -0.02.

Current cash holdings at $210.73M vs. average quarterly operating expenses over the last four quarters at $40.51M. Cash/Avg. Quarterly Operating Expenses at 5.2, i.e. the company can go 5.2 quarters without generating revenue and still cover the average quarterly operating costs.

4. Synchronoss Technologies, Inc. (NASDAQ:SNCR): Application Software Industry. Market cap of $1.26B. Daily MACD Line(12,26,9) at 0.049.

Current cash holdings at $182.13M vs. average quarterly operating expenses over the last four quarters at $39.17M. Cash/Avg. Quarterly Operating Expenses at 4.6, i.e. the company can go 4.6 quarters without generating revenue and still cover the average quarterly operating costs.

5. Savient Pharmaceuticals, Inc. (SVNT): Biotechnology Industry. Market cap of $717.91M. Daily MACD Line(12,26,9) at -0.087.

Current cash holdings at $64.86M vs. average quarterly operating expenses over the last four quarters at $15.00M. Cash/Avg. Quarterly Operating Expenses at 4.3, i.e. the company can go 4.3 quarters without generating revenue and still cover the average quarterly operating costs.

Note that SVNT is a risky stock that is significantly more volatile than the overall market (beta = 2.11). Short float at 20.76% (equivalent to 5.56 days of average volume), implying the stock is a short squeeze candidate. The stock has gained 9.16% over the last week.

6. BMC Software Inc. (NASDAQ:BMC): Application Software Industry. Market cap of $8.82B. Daily MACD Line(12,26,9) at -0.049.

Current cash holdings at $1.55B vs. average quarterly operating expenses over the last four quarters at $371.98M. Cash/Avg. Quarterly Operating Expenses at 4.2, i.e. the company can go 4.2 quarters without generating revenue and still cover the average quarterly operating costs.

BMC has a relatively low correlation to the market (beta = 0.71), which may be appealing to risk-averse investors. The stock has gained 28.71% over the last year.

7. Dynavax Technologies Corporation (NASDAQ:DVAX): Drug Manufacturer. Market cap of $318.15M. Daily MACD Line(12,26,9) at -0.093.

Current cash holdings at $72.15M vs. average quarterly operating expenses over the last four quarters at $17.89M. Cash/Avg. Quarterly Operating Expenses at 4.0, i.e. the company can go 4.0 quarters without generating revenue and still cover the average quarterly operating costs.

DVAX is a short squeeze candidate, with a short float at 5.41% (equivalent to 8.92 days of average volume). The stock has had a couple of great days, gaining 6.18% over the last week.

*Daily MACD line data sourced from stockscharts.com, cash and operating expense data sourced from Google Finance, all other data sourced from Finviz.

Source: 7 Breakout Stocks With Sufficient Cash to Cover Operating Expenses