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J.P. Morgan's Tom Lee and his equity research group tab 12 favorite stocks they believe could...

J.P. Morgan's Tom Lee and his equity research group tab 12 favorite stocks they believe could outperform in coming months, are less likely to be "consensus" buys, and with short interests of 4.7% of float or higher: X, AA, TIE, CLF, MU, AMD, SRCL, CTAS, FFIV, MCHP, WM, HRS.
Comments (8)
  • wweirich
    , contributor
    Comments (92) | Send Message
     
    CLF (Cliff Nat. Resources Inc.) - keeps showing up on people's radar, as a "go to" buy... IF China doesn't have a hard landing, IF this, and IF that. Sounds more and more like the strip at Vegas. Buffet isn't buying MO but he **might** buy CLF. Iron and coal. Basic mining. Good added value and wealth generation from the beginning of modern industrialized mankind, I suppose. Just as the home builders are rebounding finally, so will coal / energy / steel - long run. Question is, how far out must one's investment horizon be for this to happen with CLF?
    21 Aug 2012, 06:19 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Some of these I consider a continued short (FFIV); others are eternal dead money laggards (MU, AMD); AA and CLF are buys when base metals and coal "bottom"...
    21 Aug 2012, 08:16 PM Reply Like
  • smurf
    , contributor
    Comments (4144) | Send Message
     
    Whitehawk,

     

    What would consider a bottom? I think CLF is a buy under 40. Too bad nobody comes out and rings a bell to let us know.
    21 Aug 2012, 08:43 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (400) | Send Message
     
    I'd recommend a scaling in position along with covered calls for protection and the occasional protective put on an up day......that'll protect your downside, let's face it the easy money will already be made in CLF when the all clear is finally announced to the world.

     

    Long from 55 with continued scaling down and above protections.
    24 Aug 2012, 05:59 PM Reply Like
  • bart329@gmail.com
    , contributor
    Comments (4) | Send Message
     
    AA is very well run company. Stock has taken a beating because of the price of aluminum. Will come back.
    21 Aug 2012, 08:41 PM Reply Like
  • lancejay
    , contributor
    Comments (99) | Send Message
     
    I have a large position in CLF established in the middle of the week. It almost seems to good to be true with the earnings and dividend. I believe that a bottom was established in it yesterday morning although I did trade it for the day successfully yesterday. Unfortunately nobody rings the bell for us but the heavy volume yesterday does signal some form of capitulation.
    25 Aug 2012, 09:21 AM Reply Like
  • wykie722
    , contributor
    Comments (10) | Send Message
     
    I think we will be testing the 35 floor soon as I believe this market is running out of steam. What is there to keep it advancing hence the sell off this past week. Look at the Schiller PE and what happens to the market when it's at these levels. I think it would be best to sell puts at this level and if the shares are put than you can get in at a lower basis than 35- the Sept 35 put is selling for .55 so you could own the shares for 34.45 not to mention the div which would be 7.25% yield. Not too bad. If they aren't put to you, on your one contract cost potential of $3,445 you made $55 which is a 1.59% return. If you did that every month, on your investment of 3445 assuming the stock remains in this flat state, you could generate 660/ year for a total ROI of 19%. Not too bad. If you are assigned, sweet you got the shares at the price you wanted and can do it all over again the next month. How is this a bad plan??? Thoughts, comments, insults?
    26 Aug 2012, 11:34 AM Reply Like
  • lancejay
    , contributor
    Comments (99) | Send Message
     
    Sounds excellent in theory and the logic obviously applies for many stocks. Although I do not practice that approach, many people do and it seems to be a consistent way of generating small profits which certainly do add up.
    26 Aug 2012, 12:09 PM Reply Like
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