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These stocks have started a new upward trend. Great profits can be made if you invest in certain stocks or sectors when a new long term uptrend has begun. I prefer fundamental analysis when looking at stocks to buy, but I always want to see how a stock looks based on many factors, including what the 50 and 200 day moving averages are, and what the relative strength index is before deciding to buy. When evaluating this data, you can find stocks that appear to be starting what might be a significant new uptrend. It is wise for investors to be aware of how a stock looks in terms of the charts, as this can give you an edge over using just fundamental analysis.
These shares have reasonable valuations, and (most have) strong balance sheets. Some might just be good for a trade, while others might be interesting longer-term plays. You can also see that these stocks have a 50 day moving average that is higher than the 200 day average and this signals a new uptrend. Here are the stocks:
Keryx Biopharmaceuticals, Inc., (NASDAQ:KERX) is trading around $5.29. Keryx is a biopharmaceutical company, based in New York. These shares have traded in a range between $3.03 to $6.67 in the last 52 weeks. The 50 day moving average is $4.59 and the 200 day moving average is $4.50. KERX is estimated to lose about 34 cents per share in 2011 and lose 41 cents per share for 2012. In the product development pipeline, Keryx has a number of interesting candidates.
Reasons for Keryx to trend higher: This company has two candidates "Perifosine" for multiple myeloma and colorectal cancer
and "Zerenex," which targets hyperphosphatemia in patients with end-stage renal disease, both of which are currently in phase 3 trials. If these candidates get positive results from the phase 3 trials, these shares should surge.
(Click charts to expand)
Vical, Inc. (NASDAQ:VICL) is trading around $3.76. Vical is a biotechnology company, based in California. These shares have traded in a range between $1.7 to $4.05 in the last 52 weeks. The 50 day moving average is $2.69 and the 200 day moving average is $2.53. VICL is estimated to lose about 41 cents per share in 2011, and post a loss of about 40 cents per share for 2012. According to Yahoo Finance, VICL has about $52 million in cash and basically no long term debt. In the product development pipeline, Vical has a number of interesting candidates including Allovectin-7 which is now in phase 3 trials.
Reasons for Vical to trend higher: Allovectin-7, which is a treatment for melanoma, could provide good news from the phase 3 trials. Also, Transvax, which is a vaccine designed to prevent reactivation of latent cytomegalovirus (CMV), is in phase 2 trials. With a strong balance sheet and two promising candidates in phase 2 and 3, these shares appear undervalued.

Cephalon, Inc., (NASDAQ:CEPH) is trading around $77.02. Cephalon is a biopharmaceutical company, based in Pennsylvania. These shares have traded in a range between $54.15 to $77.59 in the last 52 weeks. The 50 day moving average is $65.25 and the 200 day moving average is $62.70. CEPH is estimated to earn about $8.48 per share in 2011, and $5.91 per share for 2012. In the product development pipeline, Cephalon has a number of interesting candidates.
Reasons for Cephalon to trend higher: Valeant Pharmaceuticals (NYSE:VRX) recently made an offer to acquire Cephalon, but some investors believe it will receive a higher offer from another company or that Valeant will raise its offer from the current $73 per share level. Clearly the market is betting a higher offer will come with the shares already trading over the offer at $77.02.

Charming Shoppes, Inc., (NASDAQ:CHRS) shares are trading at $4.53. CHRS is a specialty retailer of clothing and is based in Pennsylvania. These shares have a 52 week range of $2.84 and $6.14. The 50 day moving average is $3.81 and the 200 day moving average is $3.65. Estimates for CHRS are about 15 cents per share in 2011, and 32 cents for 2012. The book value is stated at $3.59.
Reasons for Charming Shoppes to trend higher: The economy is generally improving and consumers are spending more on clothes. Many clothing retailers are seeing improved results and have become lean with years of cost cutting. CHRS should benefit from this general uptrend for most clothing retailers. The one thing that could put a quick end to consumer spending is if gas prices keep rising.

Clean Energy Fuels Corp., (NASDAQ:CLNE). Clean Energy is based in California, and provides natural gas fuel and services. These shares have a 52 week range of $11.75 and $19.36. The 50 day moving average is $14.95 and the 200 day moving average is $14.58, so the shares are trading well above the averages and have made the Golden Cross Formation. Because of that, I would wait for pullbacks before considering a buy here. Estimates for CLNE are for a loss of 15 cents per share in 2011, and a profit of 20 cents for 2012. Book value is stated at $5.94.
Reasons for Clean Energy to trend higher: The rising price of gasoline has created new interest in vehicles fueled by natural gas and other alternative fuels. There is also talk of new government subsidies for natural gas powered vehicles in the U.S., which could increase demand for trucks and corporate fleet vehicles to be converted to natural gas power.

Neostem, Inc., (NASDAQ:NBS) is trading around $1.98. Neostem is developing stem cell therapies and is based in New York. These shares have traded in a range between $1.10 to $3.50 in the last 52 weeks. The 50 day moving average is $1.69 and the 200 day moving average is $1.68. NBS is estimated to lose about 22 cents per share in 2011, and lose 11 cents per share for 2012.
Reasons for Neostem to trend higher: This company has multiple sources of revenue and owns a 51% stake in a profitable generic pharmaceutical manufacturing company, which is based in China. According to Yahoo Finance, Neostem has about $70 million in revenues and a solid balance sheet.
The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.
Source: Breakouts: 6 Stocks Showing New Strength