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Some Trades For All You Drunkards - 5/17/10

|Includes:Buffalo Wild Wings, Inc. (BWLD), CHNG, DOLE, ENER, GDPM, GMCR, OSTK, RBCN, SPWR, TZOO
Profit Opportunities – 5/17/10
May 17, 2010
By Dr. Kellegro

Our current managed portfolio is happy in its current state. In order to bring the same sense of tranquility to your portfolio, Dr. Kellegro will now offer up a series of profit opportunities that have the potential to move you out of your double-wide and into some form of track housing. Money managers take delight, as these names are sure to add a number of points onto your performance so that you may have more years of 1 and 20 ahead of you. And away we go:

There is a single reversion to the mean type trade on the short side that I like – RBCN:

RBCN

There are a number of stocks that are in the process of death spirals. These types of names seem to not care at what point an astute investors takes a short position, as they do nothing but move down at their own respective pace, almost daily – ENER, GDP, DOLE, CHNG, SPWRA:

ENER

GDP

DOLE

CHNG

SPWRA

Now let’s look at some names that have the potential to go into a death spiral. Here are a couple of companies that are “broken” technically and are begging for someone to put them out of their misery. These are both fad type stocks…one makes single serve coffee machines and the other serves chicken wings. Both names should be attacked by short sellers on any strength…and from what I hear from various trading desks…sizeable orders to sell are indeed out there at higher prices – GMCR, BWLD:

GMCR

BWLD

Let’s change things up a little here and look at some opportunities to profit on the long side at the expense of some shorts. These two names look primed to continue squeezing upwards. These types of names have been getting a lot of momo players recently and that trend doesn’t seem to be ending anytime soon here. I think both of these look good to jump on the long side and gain from the pain of the early short sellers – OSTK, TZOO:

OSTK

TZOO

And at the bottom of the toilet, we have a name that is complete and utter nonsense…and if you are able to get shares…this one should be sold short, as there seems to be a little pump and dump game occurring here. A warning: this name is only for the most astute, experienced, I sit in front of my monitor all day watching red and green lights type trader – IFLG:

IFLG

Tags: BWLD, chng, dole, ener, gdp, gmcr, iflg, ostk, rbcn, spwra, tzoo