1. Horizon Pharma (HZNP)
Position: Long
Open price of Monday: 13.07
Close price on Friday: 13.15
% Change: +0.61%
The stock came out with it’s earnings this week; it reported that it beat analyst estimates by $0.04 but missed on revenues by $2.08M or over 6%. The company’s gross sales increased by over 548%, but analysts still expected slightly higher revenue in the fourth quarter. HZNP is projecting growth with its new arthritis drugs, Duexis and Vimeo. I am still very much bullish on this stock, and I am looking forward to seeing how the two new drugs perform, and how they will affect the share price.
2. Addus HomeCare (ADUS)
Position: Short
Open price on Monday: 28.26
Close price on Friday: 21.68
% Change: -23.28%
The share price of the stock are down significantly after an investigation was launched for claims that the company and its executives violated federal securities laws. This had an immediate impact on the stock price as it fell 20.37% on Thursday. As a result of this news, I am hesitant about this stock and therefore I am no longer bullish in the long run.
3. iPath DJ-UBS Coffee TR Sub-Idx ETN (JO)
Position: Long
Open price on Monday: 40.45
Close price on Friday: 39.41
% Change: -2.57%
The ETF JO performed sub-par this week as it was down over 2%. Although it was down this week, I am remaining bullish on JO as the coffee industry continues to impress investors.
4. Ballard Power Systems (BLDP)
Position: Long
Open price on Monday: 5.96
Close price on Friday: 5.69
% Change: -4.53%
The stock surged as high as $8.26 on Tuesday but continued to fall throughout the remainder of the week. This fall is paralleled with its industry counterpart Plug Power, which also saw a dramatic decrease in share price over the course of the week. As a result of the riskiness involved in BLDP, I would now label it a neutral investment. Although the stock is up over 280% over the past year, the risk involved is just too great, and I would wait a little before putting any money into this company.
HZNP
Stock Watchlist
In this post I will present to you the second stock watchlist. I really wanted to get this out on Sunday before the first market day on Monday, but I was really busy and, well, I guess you have to settle for it today. I decided to make a much shorter stock watchlist in hopes that I will be able to better keep track of every price move. I will then have more time to do research on these stocks and my end-of-the-week wrap up will be much more in-depth.
Horizon Pharma (HZNP)
Position: Long
Analysis: I have been tracking this stock for about a week now, and based on its price move and share price, I feel it is a great buy. The stock has had great momentum toward the upside in recent months and I believe that there is still more room for growth. The company will present earnings on March 13, and I am confident that it will perform well. If the company does report good earnings, you could see this stock hit the $15 range in no time.
Addus Homecare (ADUS)
Position: Short
Analysis: Overall I am bullish in this stock. However, I would like to see a pull-back of some sort before jumping all in with a bullish position. As you can see from the chart below, the stock is showing a topping of bullish momentum and the bearish momentum is taking over. The signal line is approaching the MACD line and it looks like the signal line will inch itself above the MACD line in the next couple of days or weeks. Also, the smoothed line (red line) is inching itself above the blue line, signaling a momentum switch from bullish to bearish. The company is set to come out with earnings in the next couple of days and I am looking forward to seeing how that will affect the stock price.
iPath DJ-UBS Coffee TR Sub-Idx ETN (JO)
Position: Long
Analysis: This is an Exchange Traded Fund (ETF) that follows the price action of Coffee. JO has been on a spectacular run this year, as in the time from January 28 to March 10 the price has risen over 79%! The technical’s still look very bullish and it has yet to witness a slowdown in price movement. Although the volume is not as high as I would like, I still think that the share price may have some upside potential left in it. I wish I had known about this gem of an ETF earlier as the momentum is incredible toward the upside.
Ballard Power Systems (BLDP)
Position: Long
Analysis: Full Cell stocks have been on a rapid bullish trend in the past few weeks. In the last 11 trading days alone, BLDP’s share price has jumped over 130%! This is purely a momentum play, with bullish investors severely outplaying the bearish ones. With regards to how much upside potential is left in this stock, I’m not sure. But if you were quick, this could be a potential play. The volume alone is carrying this stock to new highs, with the last trading day posting volume of over 51.1M. This is incredibly high and if it keeps it up, it may go even higher. This is definitely a stock to watch going forward.
Market Update
The market was marginally up today, with the Dow Jones Industrial Average up 61.71 (+0.38%), the S&P 500 up 3.22 (+0.17%) to a new record high close, and the Nasdaq slightly down 5.85 (-0.13%).
One piece of news to be on the lookout for is the upcoming US jobs report. The severe winter weather during the month of February seems to have weighed down the progress in the jobs sector. The consensus on Wall Street is that the US economy added 145,000 jobs in the month of February. In the 12 months leading up to the winter months, the US economy was consistently creating upwards of 205,000 new jobs a month. These numbers have fallen off dramatically for the winter months with just 113,000 jobs created in the month of January.
Stock Charts to Watch In the Next Few Days
There are two stocks that I have on my radar for the upcoming few days. Although these stocks have somewhat low share prices and therefore may be more volatile than other stocks with higher share prices, they have the potential to rise considerably in the short term.
The first such stock is Yingli Green Energy Holding Co. (YGE). YGE (6.78) is a stock that has moved up over 12% today, but has the potential to move even farther up in the near future. The technical’s on this stock show that it has an indication of a strong price reversal with momentum toward the upside. The Stochastic indicator shows that the stock is not overbought at the moment, and in fact the stochastic crossover occurring as shown in the stock (when I say crossover I am indicating the intersection of the blue line with the red line) indicates the start of a trend toward the upside. Over the past few days, the stock has traded under high volume which could help to raise the share price going forward.
The second stock that I have in my radar at the moment is Horizon Pharma Inc. (HZNP). HZNP (13.05) is a stock that has gradually increased in price over the past 6 months. In 6 months the share price has went from the $3 range to currently $13. This might seem like a dramatic increase but it has come about very steadily, with no huge one day gains in this six month period. On the chart below I have drawn a few lines to show the apparent ascending triangle. The ascending triangle is a valid charting pattern that indicates a steady upward momentum. The company is set to release their earnings on March 13, and I am looking forward to seeing how the share price responds following the report.
Capitalist Square 