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December 10, 2010
Edited: December 10, 2010
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The stock pick calls currently show 7 winners out of 8. At the end of this post, we will add and recommend new picks to the 'pigs on parade' group. This will bring the total to ten stock picks.
All our recommended 'pig' stocks are documented on this site (see prior blogs).
Just because a stock is high-priced doesn't mean it's expensive. Actually it could be cheap. Even if it is perceived as expensive, it doesn't mean it can't get more dear. Just because a high-priced stock is rising in an upturn doesn't mean it's over-bought or ahead of itself or over-priced.
I said on Nov. 17, 2010.....
"I'm not going to sit on the fence. The stocks listed below are recommended as going higher in the next 3-6 months. They are Big (priced over $100 per share). They are Fat and Happy (growth stocks in a rising upward trend).
Based on this theme, here's the criteria for this list:
1) The stocks must be priced $100 or higher
2) The stocks must be growth stocks
3) The stocks must be in a up-trend upward mode
4) The stocks must be in a strong sector
5) Not more than one stock can be listed per sector.(note,we eliminated this criteria but added - The stock must show earnings per share growth)
6) The stocks should 'get it'. (That means they are well-managed, with defined future plan, and a strong ceo).
In no particular order, the seven stocks and share price range Nov 17:
Autozone. AZO 248-250 (Auto Parts)
Chipote. CMG 230-234 (Eateries)
Apple. AAPL 300-308 (Technology)
Baudu Inc. BIDU 110 (Internet)
Priceline. PCLN 414 (Travel reservations)
Netflex. NFLX. 170-173 (Video rental)
Amazon. AMZN 160-165 (Internet Retail)
"
We also recommended an eighth pick, PNRA at 98, and added at 100.
That's what I said on Nov. 17. here are the current prices now (Dec 10)
Autozone. AZO was 248-250 , now 264.74 (Auto Parts)
Chipote. CMG was 230-234, now 238.10 (Eateries)
Apple. AAPL was 300-308, now 320.56 (Technology)
Baudu Inc. BIDU was 110 now 107.86 (Internet)
Priceline. PCLN was 414 now 419.97 (Travel reservations)
Netflex. NFLX. was 170-173 now 194.64 (Movie rental)
Amazon. AMZN was 160-165 now 175.62 (Internet Retail)
Panera (PNRA) was 98-100 now 105.90 (Eatery).
Using the same criteria as listed above, Cummins (CMI) and Salesforce (CRM) are being added to the group. I see these stocks continuing their outstanding growth the next 3-6 months. CMI is 'in fuego' earnings growth. I see 35% yearly gain.
CRM is the most risky of our picks. However, with the risks are huge potential gains. It's technology platform might overtake oracle. If it does, think huge on this stock.
I'm holding the pig stock picks at the count of 10 (for now) although there are some other excellent candidates. I don't expect our pig picks to end up being 100% correct calls. There will be some misses. To minimize the risk, we recommend, as I did this week, to take some profit off the table. We see the 'pigs' as ongoing buying, selling profit, and re-buying as timing allows. I might also remove some 'pigs' for either underperforming reasons or because another stock is deemed better and it replaces an existing 'pig'. Some pig wannabes that were considered but not admitted at this time to the 'pigs on parade' list were FFIV, FCX, GOOG, and PCP. Also note that there are a number of stocks that meet our criteria except for the 100 per share price. We will reference those stocks from time to time as 'piglets'.
One final note, high momentum growth stocks can be very volatile. On a down day, they could drop at a higher percentage rate than the average stock. Your mindset must consider this along with the good.
