The major indices each posted large gains on Tuesday to build on the market's last five days of success. And now that the Greek and Italian Prime Ministers are set to resign the markets could trend higher over the next few weeks. Several stocks have traded with extreme volatility over the last week and have caught my attention as an investor. And with a new found optimism surrounding the global economy I believe the following eight stocks are worth watching over the next week for potential gains.
Diamond Foods (DMND) has lost 40% of its value over the last five days after the acquisition of Pringles was delayed. Procter & Gamble (PG) announced that it was delaying the $1.5 billion sale of its Pringles segment until an internal investigation into the accounting issues of Diamond Foods were complete. Supposedly, the board of directors is investigating accounting issues into crop payments that were made to walnut growers, that were large enough to stall a $1.5 billion purchase of Pringles. My first reaction upon hearing this news was that walnut growers must make a hefty salary if it's stalling a $1.5 billion acquisition, and also, that when there is smoke there is fire. Since the announcement there have been multiple downgrades and several class action lawsuits. However, the company has now posted its first day of gains since the initial announcement. Therefore investors may be able to capitalize on short-term gains with an investment in DMND assuming that all news related to this matter has been released. If not, then this stock could fall substantially lower, but either way, this stock is worth watching and if it maintains its price then it could return short-term gains for investors seeking value.
During the last three months Majestic Entertainment Company (COOL) has gained more than 100% in value. Yet despite this strong upward trend the stock is only trading with a P/E of 15 and has broken through its crucial $3.50 resistance. The gains of COOL have been the result of several developments including: Increased guidance, the release date of its best-selling sequel to Zumba, the release of Parking Wars 2 on Facebook, and solid earnings. The stock is currently trading at $3.48 and has reached a high of $3.63. I believe this stock is worth watching because if it can breakthrough the $3.50 range on a consistent basis and reach $3.65 then it could trend significantly higher. And with this stock showing such a high level of volume I believe it's very possible this stock could trend to new highs before trending lower.
Level 3 Communications (LVLT) has lost 18% of its value during the last five days after announcing disappointing earnings. Up until the last five days I was very impressed with LVLT's performance, which actually trended higher after its split. I was expecting the stock to trend lower following a split much like Citigroup (C). However the stock was trending higher until earnings pulled the stock lower, and it had trended lower during each of the previous four days until posting a gain on Tuesday. Therefore I believe this stock is worth watching because with a loyal following this stock may recover quickly as many believe its recent purchase of Global Crossing will result in high profits. I am not sold on its long-term potential because of its high debt but for a short-term play this stock could post gains if it can maintain consecutive days of gains.
Endeavour Silver (EXK) is a stock that I have watched for the last year that I believe has high potential. The company's silver production continues to rise along with its revenue, which nearly doubled during its most recent quarter. The company is one of the most promising mining companies within the market that benefits from increased production and higher commodity prices. The stock was trading near 52-week highs in early September before the sell-off within the market caused the stock to trend significantly lower. Yet during the last month the stock has posted gains of more than 30% and may possibly trend higher. I believe that investors should watch this stock and if it were to trend above $12.30 then this stock could very well continue to trend higher for large gains as it breaks through resistance.
Google (GOOG) has been one of the fastest growing tech companies over the last few years. The company's fundamentals have improved by large margins year-over-year, however, the stock is trading with a 2% loss since January of 2010. The trading tendencies of GOOG are frustrating to any long-term investor, such as myself, with a stock that can not consistently breakthrough the $600 resistance. The stock has trended above $600 on six occasions but cannot maintain the price for long periods of time. The stock is now trading at $612.34 and I believe that GOOG is a stock that deserves the attention of all investors. No one would argue that GOOG is a great company yet because of its stock performance some have argued that it's not a great investment. I believe that with record earnings and key developments regarding future ventures the stock is well positioned to trend higher. The next week will be important for GOOG investors and I believe that if the stock can trend above $625 than it could trend much higher. The stock has a history of reaching a price between $620 and $630 and then reversing to trend lower. Yet I believe that with optimism surrounding Europe and a market that is trying to rise that GOOG has the potential to break through this level and trend significantly higher.
Since September 27 Questcor Pharmaceuticals (QCOR) has posted gains of more than 70% to create all-time highs. This stock is now trading with one-year gains of 226% and a P/E of 51.54 after its 70% gain since September 26 led by incredible earnings. I have wanted to buy this stock since August but feared the stock was over-valued and decided not to purchase shares. If only I had acted on my instincts I would have bought one of the fastest growing stocks of the last month and most likely one of the fastest growing stocks of next year. The success of this stock is led by the incredible growth of its Acthar prescription which increased in sales by 174% during its most recent quarter. The company continues to post mind boggling quarters with revenue, income and EPS that nearly doubles including a very strong balance sheet. There are very few problems with this company, with the exception of an under developed pipeline, and its stock just keeps trending higher. The company's increased sales don't appear to be reaching resistance anytime soon and with a much larger sales team I believe sales will continue to rise. Therefore this stock seems like a gold mine that investors should just buy and get rich. However I believe it should be watched over the next few days because of its strong gains. At some point the stock will pull back which will create a good purchase point for new investors. And I believe that when it happens this stock will make a great investment that will return large gains for many years to come.
Sirius XM (SIRI) trended lower after announcing record earnings but has now recovered with three days of modest gains. The stock is trading at $1.75 which is still $0.06 from its price before earnings were announced. And although I believe that SIRI is one of the best investments of the next five years I believe investors would be best suited by watching the stock for the next few days. Throughout the month of October the stock showed resistance at $1.85 despite the market performing with exceptional gains. And although I believe that SIRI has remarkable potential with a direct relation to the growing auto industry and a new product, Sirius 2.0, that I believe could be transcendent I am going to wait until the stock reaches $1.90 because at that point I believe the stock will trend significantly higher toward new 52 week highs with little resistance.
Acura Pharmaceuticals (ACUR) is a small cap biotechnology company that posted a gain of 5.44% on Tuesday. Since October 20 the stock has fallen by nearly 25%, however, the stock has increased by 33% over the last three months. The gains began after the company announced that it had secured the patent for its AVERSION technology. I believe this company could become a multi-billion dollar corporation over the next five years with transcendent technology that discourages the abuse of the most commonly abused opiate drugs. I believe that Acura's AVERSION technology has the potential to change the way physicians prescribe opiates and with Pfizer (PFE) manufacturing and marketing the already approved Oxecta Acura has a distinct advantage to achieve high levels of success. Therefore I believe that any price below $10 would return large gains over the next year. However, with the stock's recent slide it appears to be presenting a perfect opportunity for short-term gains. I believe that if the stock were to surpass $4.50 then it would trend significantly higher and potentially toward new highs with little resistance to slow it down.
Additional disclosure: As with any investment, due diligence is required. The opinions in this article are not intended to be used to make a particular investment or follow a particular strategy but rather informational purposes only.