Investors will be anxious during to the coming week to see if Friday's money gains will follow through into a nice early-week boost for the upcoming trading week, starting on 16 July. This week will also be a huge week for earnings, with a lot of big players potentially setting the tone for not just the week, but possibly for the rest of the summer, as well.
Friday's rally that drove the DOW over two hundred parts higher was largely attributed to relatively solid earnings reports from both JP Morgan Chase (NYSE:JPM) and Wells Fargo & Co. (NYSE:WFC). To its credit, Wells Fargo recorded "record net income" for the most recently completed quarter, a factor that sent WFC shares higher by over 3% on Friday, but eyes were more heavily watching the report coming from JPMorgan, thanks to investors looking for a more valid estimation of the huge investment loss incurred by the bank during the quarter.
Original estimates placed the loss at around two billion dollars, but the number released on Friday was $5.8 billion - a far cry from the original estimates - and it's expected that the true number may be higher still. That didn't keep JPM shares from rallying after the earnings report, though. Investors were satisfied with the $5 billion in net income registered by the big bank and shares closed higher by roughly 3% on Friday, after initially spiking as much as 6%. Shares received another boost when Wells Fargo reaffirmed its tag of "outperform" on JPM - although the obvious conflict-of-interest of one bank rating another still offers a good credibility laugh.
The banks will still be in play during the coming week, with both Citigroup (NYSE:C) and Bank of America (NYSE:BAC) set to report, although it's not expected that either would have the market-moving impact that JPMorgan had last week.
Another huge story to monitor, too, is the Libor-fixing headlines that may not be getting too much attention stateside, but are dominating the financial news overseas. Barclays of London has taken much of the Libor-related brunt thus far since it is the first big bank to fully cooperate with authorities and admit to alleged rate-fixing, but the scandal has the potential to still rock the banking sector worldwide. Barclays fines of nearly half a billion dollars could just be a start for the sector, as the total number for all associated banks could reach over $20 billion in fines, according to some analyst estimates, once the investigating is all said and done.
Swiss bank UBS AG (NYSE:UBS) also paid over two hundred million in fines already, but it's likely that other big international players, such as Deutsche Bank AG (NYSE:DB), the Royal Bank of Scotland (NYSE:RBS), Citigroup and JPMorgan Chase could also be forced to pay hefty fines. It's not likely to cause much of a sector-wide drop. However, given how easily JPM absorbed losses of six billion, but it's a story to watch as new legislation is likely to result from the Libor-fixing scandal.
Another wild card to watch is the possible emergence of individual and class action lawsuits that may start popping up and aim to hit the big banks in the wallet. Corporations and private citizens alike will claim that the fixed Libor rates effected their own bottom lines and look for compensation.
According to media reports emanating from Europe, lawyers are already being sought and this story could drag out for years, depending on much the courts allow the lawyers to chase the banks, who end up taking a double-whammy because there's going to be no lawsuits filed by those that benefited from the fixed rate looking to reimburse the banks.
US Bancorp (NYSE:USB), Goldman Sachs Group Inc. (NYSE:GS), and Morgan Stanley (NYSE:MS) are all slated to report earnings in the banking sector during the upcoming week, but none are expected to hit the street with the same impact as JPM.
Other big players to watch for earnings news are:
Coca-Cola (KO), Johnson & Johnson (NYSE:JNJ), Google (NASDAQ:GOOG) and Yum Brands (NYSE:YUM), to name a few. Each of these are considered sector-wide leaders and could set the standard for the second-quarter earnings season.
Also boosting the markets at the close of last week was the somewhat positive news that growth in China was not slowing as rapidly as some had predicted. Barely a year ago the media in all its headline and ratings-grabbing drama had us all believing that the Chinese juggernaut could not be stopped, that the U.S.'s days of economic and military dominance were done. Now, a year later, with those fear tactics all but forgotten, the same media outlets have done a 180 on the Chinese story, arguing how the global recovery could falter if China's mortal growth rate continues to decline.
Wonder why the markets are so volatile these days? It's because the media changes its tune quicker than Kim Kardashian changes boyfriends. Proof positive is that little is heard on the U.S. media circuits about Europe these days - although we know all about Bain Capital and that Condy Rice does not want to run as Mitt Romney's Vice Presidential pick.
Concerns were eased with the results of the last European summit, but the economic instability over there is far from settled. Keep some European financial news sites on the side-burner these days, since it looks like the U.S. media is about to be inundated solely with campaign coverage and reports of how Katie Holmes must have a side job with the CIA for being able to file for a divorce, an occurrence that happens every half second in America.
Also look for Bernanke's mid-week comments to potentially impact trading and for the MLB to offer a nice distraction as its own trading season heats up with the end-of-month deadline looming. The extra wild card this year makes it that much more interesting as teams that would usually be considered sellers, like the Brewers, may instead make a push to go all the way.
The Mets look pretty solid, since that off-season focus on the bullpen has really paid dividends.
Another exciting week is upon us, and while earnings may dominate the show, here's a few stocks and stories to keep an eye on...
Amazon.com Inc (NASDAQ:AMZN): Amazon shares were up by three bucks during Friday's rally, or about one and half percent, a spike in-line with the broad market rally, but there may have been a little bit more the investor interest than just that.
Quite a bit of hype was created last week over rumors that the company was planning to enter the smartphone business, in direct competition to Apple's (NASDAQ:AAPL) iPhone and Google's Android, and some investors interest may have been created on that news, as well. While some may see any dent in market share that Amazon can make in this very lucrative market as a positive development, others are speculating that the company may be over-reaching and looking to spend too much money in a sector already dominated by a couple of giants.
Amazon is also on a spending spree, having picked up the mapping startup UpNext recently, which could also make investors nervous about the cash burn rate that could eventually hurt earnings. The company has already guided lower than analyst estimates for the second quarter.
This will be a hot story to watch in the Internet/tech sector during the next few quarters. Hype will undoubtedly be built on the smartphone story, but investors who start to feel the company is over-extending and should concentrate on growing the Kindle business as its 'gadget play' may become antsy and bail.
Facebook (NASDAQ:FB): Facebook's earnings are going to be heavily watched and much anticipated for this quarter, given the hype and hoopla surrounding the IPO that many thought to be a demonstration of insider greed than it was the premiering of a grand new investment idea for the little guy. Numbers not publicly released before the IPO showed declining earnings for the Social Media behemoth, a trend that - if continued - could lead to another swift trip south for the FB stock.
It's clear that the company is not taking its new challenges lightly.
A few key acquisitions are aimed at infiltrating the mobile market with flair while an alliance with Comcast Corp (NASDAQ:CMCSA) to provide Olympic coverage shows that Facebook may gearing up to make a move to join social media with conventional media coverage, possibly to compete with Yahoo's (NASDAQ:YHOO) user-tailored MyYahoo platform. The key for Facebook will be to translate these moves into revenue and note become another MySpace.
This one may ultimately become the long-term winner that many projected when the IPO price jumped higher and higher before the start of trading, but expect continued short-term volatility - and if earnings disappoint, then another exodus could materialize quickly.
Microsoft (NASDAQ:MSFT) Microsoft is set to report earnings this week, after a near 3% price spike during Friday's market rally. CEO Steve Ballmer last week essentially declared war on Apple last week, but such tough talk will have no impact on this week's earnings report, which will contain a multi-billion dollar acquisition-related write down.
Reports have been mixed regarding the potential strength of shares following this report, as consensus has it that the company will report a significant earnings decline. That decline could be a reason that CEO Ballmer was on the 'campaign of the future' trail last week, looking to offset any dim news. Those that believe Microsoft poses a threat to Apple's industry-wide dominance, however, may find any dips as attractive buying opportunities for the future.
Research In Motion (RIMM): Now trading for well below ten bucks a share and no turnaround in sight, - and still no Blackberry 10 - there's still little reason to buy into any potential rebound story here.
Verizon (NYSE:VZ): Verizon shares set a new 52-week high during Friday's rally, in anticipation of an earnings report that's due to hit the street this week. Additional revenue has started to roll in as the result of rate and fee hikes, mainly related to data usage, Fios speeds and higher new phone charges, and analysts estimate a profit of 64 cents a share on $28.54 billion in revenue for the company.
Another significant factor for Verizon has been the ability of the company to lure users away from competitors thanks to now having the right to sell iPhones.
Verizon's report this week will set the stage for AT&T (NYSE:T) to report the following week.
Teletouch Communications (OTC:TLLE): Teletouch Communications has been refocusing its business plan to concentrate on the profitable business of distribution and hardware sales for many of the main companies and giants of the sector. A new addition to the sales and management team announced last week validates the company's profound move into distribution and sales arena and bodes well for both the short and long term growth prospects for the company.
The addition of Timmy Monico, a thirty year veteran of the industry, as Vice President of Sales for its distribution unit, PCI Wholesale, brings with it a Rolodex of new contacts and experience that immediately add respectability to a still relatively small player like Teletouch.
Given the recent moves by the company, that include a few new distribution contracts signed over the past couple of months, TLLE could be a potential growth story in the making.
Explosive Trace Detection and Homeland Security:
Implant Sciences (IMSC.PK): Another modest decline on Friday - after shares had quadrupled in price in relatively swift fashion over the past weeks - may have Implant Sciences shares approaching buy territory again.
As investors await news on a potential TSA approval for its Quantum Sniffer explosive trace detection technology that could launch the company into the mainstream of homeland defense circles, the company announced last week that it had received a follow-on order from the private sector in Nigeria to provide hotel security.
While terrorist threats to infrastructure in the rich western-world countries dominate the press headlines, countries in the third and developing world are just as at risk for such attacks and the increased presence being gained by Implant in Africa, Asia and Middle Eastern countries is evidence to that point.
As outlined in a recent report in the U.K.'s 'The Economist' magazine, Al Qaeda forces - being pushed out of areas such as Iraq and Afghanistan, may be looking to set up shop on the under-protected African continent. Some troop movements by First-World nations, also specified in The Economist report, and increasing media attention to the region, is a testament to that theory.
While maybe insignificant in the size and scope of the order for those looking for overnight riches, the fact that Implant is making headway in terrorist heavy regions should not go unnoticed. There have been arguments made by contrary opinions that Implant's non-radioactive technology is not enough to compel security experts to choose the Quantum Sniffer over its radioactive competitors, but when dealing with areas that hold a high density of staff and civilians at any given time, such as hotels, airports and train stations, it could be the deciding factor in a purchase decision.
Africa is flush with emerging economies and as investors will likewise look to ensure protection from the growing terrorist threat, Implant could capitalize. Nigeria itself was highlighted in a recent report of growing higher on the list of potential terrorist targets and in-country violence, indicating that Implant could continue to realize sales growth in the country.
Key management and advisory additions to the Implant staff also indicate that the company is preparing to soon hit the mainstream and remains confident of a TSA approval later this summer.
In additional validating news, the Quantum Sniffer was chosen earlier this year to provide security for the Summit of the America's in Cartagena, Colombia as part of a layered defense plan to protect numerous heads-of-state, dignitaries and presidents, including U.S. President Barak Obama.
Healthcare, Biotech, Pharmaceutical:
Sunshine Heart (NASDAQ:SSH): Shares of Sunshine Heart continued to explode last week, hitting highs of over seventeen dollars before coming back down to earth and closing the week at $12.68. Those realized price gains are monumental considering that the stock traded for $2.50 less than three weeks ago. The volume behind the price spike was also monumental, considering the lightly-traded nature that surrounded SSH over the prior months.
Sunshine's price run also attracted the interest of larger media outlets, with reports from both MSN Money and Fox Business making their rounds, but even Reuters got into the act on Thursday in a report that summarized the ground-breaking nature of Sunshine's implantable medical device, C-Pulse, that could be the new breakthrough that patients of heart failure have been looking for.
CNBC also carried the Reuters piece, an exposure boon for an emerging company such as Sunshine.
The C-Pulse technology is that it falls well in line with today's healthcare trends of finding cheaper and more effective ways to treat what have previously been known to be very expensive and invasive conditions. C-Pulse is implanted with a minimally-invasive procedure, which alone cuts monetary costs in relation to surgery and recovery. The system has also thus far demonstrated that it can reduce the number of a patient's required visits to the doc while also enabling the target patient group to avoid the extended hospital stays that often accompany treatment.
Additional trials geared towards US FDA approval are slated to commence later this year, right around the time that the first commercial sales could be realized.
Given the swift rise in share price and resulting media coverage, another exciting week could be in store for shares of Sunshine Heart.
For a more in-depth report on this company, see my previous write-up, dated July 3rd.
Amarin Corp (NASDAQ:AMRN): Amarin has long been on the hot list as both an FDA 'approval play' and as a potential 'buyout play' based on the potential of AMR-101, a treatment for high triglycerides that is slated to receive (or not) an FDA approval later this month. Given the solid Phase III data of the AMR-101, it's widely assumed that the FDA will approve - a theory I agree with - which opens the door for either a large partner to jump on board and commercialize the product or - maybe more probable - for a much-speculated buyout to occur.
There was, however, some drama last week.
A report by TheStreet.com's popular biotech blogger indicated that a late-June meeting between officials from both the FDA and Amarin may have ended with a key determination on its New Chemical Entity (NCE) status that would effect how long AMR-101 could claim exclusivity on the market before generics came into play.
When TheStreet's article hit, shares dropped and investors who had otherwise been riding the AMRN train to new 52-week highs were likewise upset and disappointed, but shares rebounded quickly and closed the week not too far below from it opened the week. Look for additional hype and excitement to surround AMRN trading during the coming week as D-Day with the FDA approaches, and any additional dips could open up some nice trading opportunities.
While an approval is all but guaranteed, judging by investor sentiment and analyst comments, it's worth keeping in mind that nothing is a sure thing in this sector and it's always a wise move, in my opinion, to play some trading shares for profits leading into catalyst events. That said, approval sentiment is about as strong behind AMR-101 than any other candidate recently up for approval.
Titan Pharmaceuticals (OTCQB:TTNP): Shares of Titan Pharmaceuticals opened the month of July trading at sixty five cents. Just two weeks later, shares are trading for seventy nine cents, a significant percentage increase for those that took advantage of the dip, and are threatening to quickly move higher as volume has been picking up at an impressive rate.
News did hit the wires last week that Titan may be developing a pipeline behind just Probuphine for opioid addiction and chronic pain, but it's unlikely that the news - which related to a pre-clinical product - would have such an impact on trading volume and/or share price.
It's more likely, however, that investors are taking positions in preparation for something bigger, possibly the filing for approval with the FDA of Probuphine, an event expected to take place in or around September of this year.
It's also possible that investors are expecting a partnership deal to finally take share, something long-speculated by TTNP investors, and some may even contend that Probuphine and the ProNeura technology may be the target of an acquisition. Given the overuse and overdosing of popular pain medications, there may be a huge market opening up for the subcutaneous ProNeura technology, and the relatively miniscule market cap of Titan Pharmaceuticals could make for a highly-attractive purchase for a larger pharmaceutical company who could gobble up the technology right now for chump change.
With a significant boost in volume and price - in terms of percentages - already recognized, keep an eye on Titan this week. Could be that something's finally brewing again after having run to two dollars before retreating last year.
Advanced Cell Technology (ACTC.OB): Shares of Advanced Cell Technology have rebounded close to ten cents again after encouraging news on the trial front has circulated the wires.
On Monday of last week the company announced that a
Data and Safety Monitoring Board (DSMB), an independent group of medical experts closely monitoring the company's three ongoing clinical trials, has authorized the company to move forward with enrollment and treatment of additional patients in its clinical trial for dry age-related macular degeneration (dry AMD).
The authorization to move forward, and at a higher dosage, is viewed as a validation of the potential of the company's stem-cell technology that is being investigated in multiple trials for the treatment of conditions of severe blindness.
Just a few days later the company reported that it had treated a second patient - the first at a higher dosage - in its Stargardt's Macular Dystrophy trial.
Since receiving the historical green light to initiate clinical trials for its novel, stem cell technology, ACT has become a recognized leader in the field and holds a great deal of long term potential. While still trading in 'pennyland' as trials develop, look for the company to make moves that will validate its share price and open the doors for more established traders to buy in.
This could be a game-changer in the making and the story is well worth watching. Any buys below the nine or ten cent level have historically come back to be recognized as solid trading opportunities.
ACTC should never stray too far from the radar screen.
MRI Interventions (OTCQB:MRIC): MRI Interventions is another one to not let stray too far from sight. Having traded for closer than a buck than two just weeks ago, shares touched a high of five bucks recently on high volume before settling down and closing last week at the $3.50 mark.
The company also raised six million in cash earlier this month.
Like Sunshine Heart, listed above, the technology that fuels MRI Interventions falls well in line with today's healthcare trends of finding cheaper and more effective ways to conduct previously highly-invasive surgical procedures. In the case of MRIC, the company's ClearPoint and ClearTrace technology augment a hospital's already-existing MRI suites to provide real-time intraoperative MR imaging of the brain and heart, respectively, and therefore allowing surgeons to conduct "minimally invasive" procedures. This could be a breakthrough that the healthcare sector could use right now to help cut costs and expenses.
Last month, the company revealed that Tocagen came on as a partner and would adopt the ClearPoint technology in association with its ongoing clinical trial for Toca 511 against the most aggressive form of brain cancer, recurrent high grade gliomas including glioblastoma multiforme (GBM). As noted in the press release announcing this new collaboration, ClearPoint will assist medical professionals at selected sites in delivering Toca 511 "into brain tumors under real-time magnetic resonance imaging (MRI) guidance."
With numerous companies also conducting similar trials and procedures, and with the minimally-invasive neurosurgery market already noted to be in the billions, the framework is well in place for MRIC's ClearPoint technology to join the fray and quickly recognize rapid growth, both clinically and commercially.
Already, aside from the Tocagen deal, MRIC has landed some high-profile partnerships.
The company is already partnered with Brainlab, a leader in the image-guided surgery field in the U.S. and Europe, for the advancement of the ClearPoint technology and MRIC landed Siemens AG (SI) as a partner for the development of its ClearTrace system. Additionally, in a deal that came with an up-front payment of $13 million, Boston Scientific Corporation (NYSE:BSX) signed a deal to incorporate MRIC's technologies into its cardiac pacemakers and neuromodulation products. Should BSX utilize the technology in any of its products, MRIC would be due royalty on any associated revenu.
Volume has picked up significantly as the share price has tripled in just weeks and this will be a story worth watching, both for the commercialization potential of the technology and for the buyout potential of the company.
Spectrum Pharmaceuticals (NASDAQ:SPPI): As one of the best 'counter-the-shorts' plays in recent memory, shares of Spectrum Pharmaceuticals continue to edge higher and set a new 52-week high last week before falling back a bit and closing the week at $16.32. Given the strength with which shares have risen against the rising short interest, any dips could turn into buying opportunities, although the upcoming earnings report is likely to have the less-ballsy investor a bit nervous about continuing to counter the shorts - after all, in today's world, the shorts will go all-out to eventually get their way.
That said, even the doubters of Fusilev over the past year have given in and predict continued short-term growth for the product. The generic competition has not been reinvigorated as previously thought and eyes will tuned into the Zevalin numbers; any significant growth there - or any other positive news - could quickly propel shares to the twenty dollar mark.
Still a candidate to turn into the mother of all short squeezes, the only weight playing on the SPPI upside right now is that all the shorts need is an opening of any kind to drive the share price lower. Any bit of not-so-dandy news would be spun enough to create doubt and send the weaker hands fleeing, which would lead to an opportunity for the shorts to apply the downward pressure enough to be able to cover without losing that beachfront property in Miami. What's concerning in these situations is that the bad news does not even have to come from a specific company, it could come from bad news in the sector or in the market as a whole - if the market drops on concerns of a slowing economy or bad news from Europe, it's often that the highly-shorted stocks will face a more protracted drop than others as investors look to place cash on the sidelines.
At the time, however, there's nothing indicating that any bad news is looming, aside from those that believe that the shorts might know something that the average investor doesn't.
There still a very good case to argue that there is plenty of run left with SPPI, but as always, it's a wise idea to take some profits off of the table after significant price runs, since the markets can be highly unpredictable at times.
Another exciting week should be in store for SPPI, and it's likely that the stage is being set for new 52-week highs - especially last week's encouraging market run continues into this week.
Prolor Biotech (NYSEMKT:PBTH): Consider this a lull between news period, generally not a bad time to load up on biotech and small pharma stocks before catalyst events are announced. In the case of Prolor, the initiation of a Phase III trial later this year could provide a market-moving catalyst, but of more relevance could be the announcement of trial data expected a year later, around the same time that data would flow in from the European Phase II pediatric trial.
The company's CTP technology holds potential in a multi-billion dollar market for the treatment of hormone deficiency alone and the company also holds rights to other CTP applications, outside of four fertility-related applications owned and commercialized by Merck (NYSE:MRK) in Europe.
Being able to replace seven daily injections with a once-weekly injection, Prolor may hold a technology that is highly attractive to potential buyers in the pharmaceutical sector.
One to watch, and potentially accumulate.
Vivus (NASDAQ:VVUS): After the victory lap by Arena Pharmaceuticals (NASDAQ:ARNA) a few weeks ago when the FDA approved its weight-loss drug, Belviq, D-Day for Vivus comes this week as the FDA is set to render its decision on Qnexa, another weight loss product. Sentiment has it that approval is also in the bag for this one, as evidenced by a 25% price spike over the past few months, but some recent insider sells has some wondering whether or not management might not be as confident about an approval as investors.
Other reports have circulated that the sells are related to buying plans and are unrelated to company events.
Additionally, insider sells after significant price runs shouldn't always raise alarm bells, in my opinion. These guys like to bank profits just as much as the next guy, and I wouldn't blame anyone for taking some profit off the table after the gains recognized by VVUS over the past few years.
Trading gains can only be translated into Dom Perignon, Grey Goose and European vacations after the shares are sold. On paper they just look good.
If VVUS is approved, expect a spike and then the volatility that engulfed ARNA post-approval, if denied, an unlikely event, in my opinion, then expect a big drop. If delayed again (this decision was delayed from April) then expect some temporary volatility - any drop would be relative to the reasoning behind the delay.
If I were to bet on this one, I'd go with approval. That said, out of principle's sake, I don't mess with treatments for conditions that could easily be cured by discipline, a good diet and exercise. Maybe next Arena or Vivus will come up with a pill that treats laziness - a drug that effects the portion of a person's brain that makes them want to sit on the couch all day with one hand in a bag of Doritos and the other hand holding a Big Mac. Mark my words, someday, someone is going to try it.
Congrats to those that made (and may still make) bank with VVUS.
Lpath, Inc. (NASDAQ:LPTN): With trials about to re-start, potentially within weeks, the current prices could soon be looked back upon as a nice buying opportunity for this company that has become the recognized leader in lipid-based therapeutics. Only a matter of time, in my opinion, before Pfizer (NYSE:PFE) jumps in and consummates its high-stakes partnership with the company into an all-out buyout. Right now, the Lpath technology would come fairly cheap, based on market cap and potential.
Food and Beverage:
Coca-Cola (NYSE:KO): The beverage giant is facing a decline in sales of its sugary carbonated drinks in the US, but growth overseas is expected to propel KO to a solid earnings report this week. Like America's favorite fast food names, beverage companies continue to benefit from large growth in emerging markets.
Recent reports even have Coke making a move into Myanmar, significant in the fact that it is currently one of only three countries where the company has no operations. It's also significant for Myanmar, formerly known as Burma and highlighted in Sly Stallone's latest Rocky film, as a country looking to emerge from years of civil war and military rule to become an economic player in Asia.
Myanmar will never make or break earnings for KO, but it's a demonstration of global dominance that Coca-Cola is everywhere.
Over the long run, Coca-Cola and all other makers of sugary beverages will have to boost inventories of healthier alternatives to meet the demands of consumer trends - aside from those who are prescribed Arena's or Vivus' new weight-loss pills, because why eat and drink healthy when you're told a pill can do the trick for ya?
One to watch for the week, as the standard could be set for other players in the sector.
Celsius Holdings (CELH.B): One company looking to make some noise in the healthy beverage sector on both the domestic and international fronts is Celsius Holdings. Celsius has a healthy portfolio of various beverage flavors and powdered add-to-water packets that have been making some headway in the 'workout campanion' market, to be consumer pre-workout in order to boost performance and enhance a bodies calorie-burning effects. The company has recently hired Tony Little, a staple in the infomercial market for health-related products, as its "Fitness Ambassador" and does not need a significant boost in sales to have an impact on the lightly-traded common shares.
Earnings are not due this week, but any pullbacks could be viewed as nice buying opportunities for those that believe the company is onto something. Just months ago shares were in the twenty cent range and have traded for roughly double that price since, aside from brief pullbacks in price.
Another one worth watching.
Yum Brands (YUM): Another big player in the food and beverage sector, Yum Brands is set to report earnings this week and, like Coca-Cola, is looking to capitalize on international growth. YUM spiked two and a half percent on Friday during the market rally and, like McDonald's (NYSE:MCD) should be considered a decent 'add on the dips' pick as long as its brands are recognized staples on the international market.
Industry, Energy, Green Technology:
General Electric (NYSE:GE): Shares of General Electric have traded well recently and are still up close to their 52-week high of $21. Also taking advantage of an opening market in Myanmar, GE became the first U.S. firm to do business in the country since sanctions were lifted a short time ago. GE's deal was modest - ya gotta start somewhere - a $2 million move to provide hospitals with X-ray equipment, but should open the door for follow-on business in Burma.
With earnings due this week for GE, the company and its stock will be in the spotlight. Not a bad pick, in my opinion, for those looking for potential long term growth and dividends.
Capstone Turbine (NASDAQ:CPST): Capstone Turbine already has a relationship with General Electric, has benefited from the growth of natural gas and shale drilling and has also recognized quarter-over-quarter of significant sales and revenue growth. That hasn't been enough to convince shorts to stop shorting, however, as the company has yet to turn a profit and the short interest is still increasing.
Capstone develops low-emission microturbine units and has been making nice headway into the green energy market on an interantional scale. On the heels of another round of order announcements, Capstone made it known last week that it had secured a couple of orders in the Colombian natural gas market. These orders continue to demonstrate the popularity of Capstone's microturbine units in a booming industry, although investors are still waiting for the positive orders and sale growth to translate into profits.
Shares traded up by nearly 3% on Friday during the rally, 10% from its recent lows.
If you can ignore the over-the-top political mumbo jumbo playing out on all the news networks lately, this week should be another solid one for some Happy Trading!!!
Disclosure: Long CPST, CELH, IMSC, PBTH, TTNP.