Friday, May 2, 2014

5/2/14 Weekly Picks

5/2/14

Long CTRP ($45 4/29/14)

  • Priceline.com of China
  • Strong top and bottom line growth
  • Emerging and rapidly growing Chinese middle class (target customer)
  • Down 9% last month so good entry point
  • Long term play
Short CSH ($45)
  • Payday lender
  • DOJ is investigating and likely to implement new regulations on industry
  • Stock is up recently due to spinoff and good short entry point
Long INVN ($19)
  • Chips for wearable devices primarily
  • AAPL will likely use their chips in iWatch
  • If AAPL contract is won, stock should appreciate signicantly
  • Stock is expensive, near 52 week high, but fell today on poor earnings
Long SDRL ($34.5)
  • Offshore driller
  • 11% dividend
  • 52 week low due to capacity over reaction in industry
  • Mgmt assured dividend will not be decreased until 2016
  • Did I mention 11% dividend?
Short CTRN ($17.2)
  • Urban clothing retailer
  • 52 week high for no apparent reason
  • 500 P/E ratio
  • Long term viability is questionable with unattractive industry and poorly run company
FSLR Long Straddle ahead of earnings on Tuesday

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