My trading strategy is based on buying companies with improving fundamentals at proper technical buy points. My best trades have something in common: the stock had a solid fundamental and technical picture before I bought it.
This is the list of companies I am currently observing in order to buy them as soon as they break key resistance levels with above than average volume.
First Solar (FSLR)
While I do not like the current fundamentals of this company its chart is pointing a constructive price action and reflects that institutions are quietly accumulating shares at these levels. Obama has said repeatedly that he supports government investments in clean coal technology and renewable energy and investors could be thinking that First Solar is a good exposure for this beaten-down sector. FSLR recently reported stronger than expected 3Q12 earnings but adjusted 2012 full year guidance based on market conditions. Clearly, FSLR continues to execute its solar project pipeline despite an oversupply in modules. While margins were strong in 3Q12, guidance implies margins will decline in 4Q12. I think that the market already priced all FSLR bad fundamental metrics. FSLR continues to transition its business to the unsubsidized utility market and I think could be an interesting play considering that Obama has been reelected.
I will buy if the stock breaks the $26 level with increased volume.
“In the fourth quarter, we made significant progress in returning Zale to profitability. We recorded our seventh consecutive quarter of positive comps, reported a sizeable improvement in operating margin and strengthened our capital structure. In fiscal year 2012, we achieved a 6.9 percent comp, on top of an 8.1 percent increase last year, and reported operating earnings for the first time since 2008. We look forward to building on this momentum in 2013.”
SSYS management reported that system and consumable revenue grew by 27% and 23%, respectively, over last year. Also contributing to the strong quarter was the company’s RedEye parts service, which grew by 26% over last year. These performances contributed to a record level of revenue which grew by 24% over last year, and a record level of non-GAAP net income, which grew by 42%. Stratasys is a strong growth stock.