Forming Bases
This post is based on the strategy and observations in the post at the above link.
As a result I have put together a couple of stocks that appear to be qualifying for the honor of being so distinguished.
They have particularly strong fundamental speculation to undeniable fundamental strength which is priced at cheap levels compared to potential share pricing as a longer hold when compared to peers. These stocks are bubbling for a lack of better description and displaying a pattern on Level II that suggests in the face of of the coming go away in May, they have the strength to weather the consolidation they are experiencing.
I would not advise taking a position in more than one or two as the the market is full of distribution, such that diversification can have a broad market downside consolidation on your portfolio, so that diversification can work against you resulting in an overall decline in portfolio value even though you pick some good value. It is one thing to diversify in a broad market upswing and completely another to diversify in a market that is mildly bullish approaching a head and shoulder pattern. Of course diversification is supposed to limit the downside risk, but don't push it to the limit in a consolidation unless you really want to.
These picks should not be considered to provide an opportunity for serious pops or spikes but if they do, consider it as a bonus. These picks are for parking money into lower risk plays that are holding strong in a consolidating market, and have reasonable potential to remain in the uptrend. By my standards, these stocks are in an uptrend as of this post.
They are steadily slowly pushing against resistance, and when they break through traders quickly take profits, (why you shouldn't chase) only when the supply is weak does the price pop and real breakouts can occur. Back fill is taken for granted and taking a position should be from the bid at no more than 4 % above the previous days close.
TKO is destined for greatness... so they say, and the fundamentals back it up... It is in an up trend most definitely, and if it delivers, the potential operating margin is comparable to one stock trading at 39.00 US (GG) Goldcorp.
"Foolish gold guru Christopher Barker puts the potential for Taseko's operating margin on the same level (if not ahead of) that of Goldcorp (NYSE: GG) and Yamana, and marvels at Taseko's ability to generate an estimated production cost of negative -($330) per ounce of gold from its Prosperity mine once all the copper byproducts are calculated in. It's why he says Taseko has mapped out a future that's paved with gold -- but the miner trades at 10% lower than when he wrote that."
IMOP
Foolish picks tend be in the mid to large cap area and more expensive and boast an investor type following which is more likely to be minus the extreme pops in favor of swings that can be TAed for a long term hold and gain.
Will a double digit trading share price for Taseko come to pass as predicted... the quality of the guru recomendation suggests, it is not if but when. support best buy 4.89.
For entertainment only.
SQI.v is looking strong. support best buy .34 cents
BKX.v is looking strong. support best buy 2.35 to 2.40
TBE.to is looking strong. support best buy 1.38
EVG.v (is ranging, was down, could reverse soon... it has moved above the 20 day average.) best buy tight stop mental .93
GLTA Lostoutwest
Kenuck SmallCap Trader
National Post
Grandich
StockCharts Public Chart List
CBCnews
Please read our Complete Disclosure
If you see the hand... click on screen shots to enlarge them.
