Jim Cramer's famous saying "Bulls make money, Bears make money, but Pigs get Slaughtered!" Being that all rules have exceptions, Jim's has one. HOGS - Zhongpin Inc. My selection of stocks always starts with earnings and sales growth. I need to see massive growth in Earnings and Sales. My next criteria is the chart, but we'll wait to get to that. Here is why I love this Pig, no I mean stock:
Can you see that growth?!?!
So called "value" ratios do not enter into my scan for stocks. However, they are worth noting when they are perceived to be "cheap." Check out these ratios:
A P/E of 11.26, P/S 1.01, and a ROE of 18.93. These types of "value" ratios are just icing on the cake. Its not often you find a stock with tremendous growth and a 11.26 P/E.
Moving onto the charts: Daily and Weekly.
Daily:
Weekly:
What I like about this chart is the accumulation building as the stock made and recovered from its lows. There is a ton of accumulation in this chart and this is exactly what I love to see in a chart. My only issue with this stick is that it hasn't proven it can run higher. It is always an added bonus to see a stock have the ability to move higher.
Overall, this stock has the potential to morph into a Monster Stock. I always cut my losses, 8-10%. If the stock falls 8-10% below my purchase price and the stock does not recover by the EOD I will sell it before the close. I never sell as soon as the 8-10% level is breached, it is always done at the EOD.
For more info on HOGS go here.
Here is a check up on the two stocks I have profiled the last two weeks:
CDS = -15.3% 5/5 - 5/16 per my sell rules I left the stock with a loss of 12.8%
VIT = +22.9% 5/12 - 5/16
Enjoy the week!
Market Speculator
Data from Reuters and Charts are from TeleChart Gold. Author is not long the stock at the time of publishing. Author is long VIT.
Can you see that growth?!?!
So called "value" ratios do not enter into my scan for stocks. However, they are worth noting when they are perceived to be "cheap." Check out these ratios:
A P/E of 11.26, P/S 1.01, and a ROE of 18.93. These types of "value" ratios are just icing on the cake. Its not often you find a stock with tremendous growth and a 11.26 P/E.
Moving onto the charts: Daily and Weekly.
Daily:
Weekly:
What I like about this chart is the accumulation building as the stock made and recovered from its lows. There is a ton of accumulation in this chart and this is exactly what I love to see in a chart. My only issue with this stick is that it hasn't proven it can run higher. It is always an added bonus to see a stock have the ability to move higher.
Overall, this stock has the potential to morph into a Monster Stock. I always cut my losses, 8-10%. If the stock falls 8-10% below my purchase price and the stock does not recover by the EOD I will sell it before the close. I never sell as soon as the 8-10% level is breached, it is always done at the EOD.
For more info on HOGS go here.
Here is a check up on the two stocks I have profiled the last two weeks:
CDS = -15.3% 5/5 - 5/16 per my sell rules I left the stock with a loss of 12.8%
VIT = +22.9% 5/12 - 5/16
Enjoy the week!
Market Speculator
Data from Reuters and Charts are from TeleChart Gold. Author is not long the stock at the time of publishing. Author is long VIT.
5 Comments:
Hi thanks for info here. Any thoughts on SOLF ? Reports earnings before market opens wednesday. Take care
From my experience, pigs companies are vulerable to diseases. Has to be prudent.
Actually, pigs don't get slaughtered, hogs do.
But nice analysis, and thanks.
Daniel
RE:SOLF
Always dangerious to buy before earnings release. Wait until after the release. Be ready at 9:30AM EST to jump in if the market is happy.
Also, given recent run-up, you may be chasing the stock at this point.
Alex ......
RE: SOLF
As long as you trade a plan there is no reason you can't go long SOLF. Just have a plan.
MS
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