Jim Van Meerten's  Instablog

The Chart of the Day is Legg Mason (LM). Lately the stock has terrific momentum and was up in all of the last 20 trading sessions. The stock gained 47.89% in the last 12 months and still has a P/E below the market average. We found the stock by sorting the New High list for frequency.

It is a holding company which, through its subsidiaries, is principally engaged in providing asset management, securities brokerage,investment banking and related financial services to individuals,institutions, corporations and municipalities.

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Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 540 and 100 day moving averages
• 20 new highs and up 20.11% in the last month
• Relative Strength Index 81.01%
• Barchart computes a technical support level at 35.22
• Recently traded at 36.13 with a 50 day moving average of 31.88

Fundamental factors:

• Market Cap $4.66 billion
• P/E 13.52
• Dividend yield 1.25%
• Financial Strength B+
• Revenue predicted to increase 2.40% this year and another 4.10% next year
• Earnings estimated to grow 183.00% this year, an additional 15.50% next year and continue to compound at an annual rate of 16.67% for the next 5 years
• Wall Street analysts have issued 3 strong buy,7 hold and 4 sell recommendations

Hold unless the stock drops below its 50 day moving average.

All of my model portfolios has different screening criteria: some based on technical momentum, some based on fundamental factors and some based on both. Occasionally a stock may meet the screening criteria of more than one portfolio. That happened with Jet Blue (JBLU). It was added to the New High portfolio when I screened for stocks trading over 100,000 shares a day hitting the most frequent new highs and at the same time was added to the Speculative portfolio because it was a stock trading under $10 the was hitting new highs.

Today I'm deleting it from both because it has reversed that former momentum:

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Barchart technical indicators:

• 80% Barchart short term technical sell signal
• Trend Spotter sell signal
• Trading below its 20 and 50 day moving averages
• 7.74% loss in the last 20 days
• 11.54% off its 1 year high
• Relative Strength Index 39.81%

The Chart of the Day is the WhiteWave Foods Company (WWAV). During the last month the stock advance 11 times for a 15.90% gain. It has both 100% Barchart technical buy signals and a Trend spotter buy signal. The stock was found by sorting the New High list for the stocks with the highest technical buy signals.

It is a consumer packaged food and beverage company. It manufactures, markets, distributes, and sells branded plant-based foods and beverages, coffee creamers and beverages, and premium dairy products throughout North America and Europe. The Company's products include soy milk, flavored creamers, organic milk, yogurt, cheese, butter, sour creams, and whipped creams. It serves the grocery and natural foods channels in the United States.

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Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 11 new highs and up 15.90% in the last month
• Relative Strength Index 74.94
• Barchart computes a technical support level at 18.39
• Recently traded at 19.10 with a 50 day moving average of 17.03

Fundamental factors:

• Market Cap $439.30 million
• P/E 28.90
• Revenue predicted to grow 8.90% this year and another 7.90% next year
• Earnings estimated to increase 16.70% this year, 18.60% next year and compound 17.50% annually for the next 5 years
• Wall Street analysts issued 5 strong buy, 1 buy and 4 hold recommendations

Hold until the stock traded below its 50 day moving average.