Friday, August 3, 2012

Active Screening: August 3rd

Back in March, our Active Screen had kept Apple in top spot. Has this situation changed over the course of a scrappy summer?

The Active Stock Screen used the following parameters:
• % Chg EPS; Q to last yr Q of 25% or more
• % Chg EPS; YTD to last YTD of 25% or more
• % Chg Revenue; YTD to last YTD of 25% or more
• Return on Average Equity of 17% or more
• 5-yr Revenue Growth Rate of 15% or more
• Market Cap of at least $50M
• Net Profit Margin of 18% or More
• Current price above $12
• Average 10-day volume above 250,000 shares

For the first time, this screen didn't feature Apple.

Topping the list is Baidu (BIDU). The stock was range bound in March and despite an attempted break of $140 in April it was unable to make the move stick and the stock returned into its base and back to the lows of $100.  The stock is mounting a new rally but the stock has work to do before it can clear what is stiff resistance in the $155-165 area.

Zignals Chart Image

Ranked in second place is Priceline (PCLN).  This stock was flying after it cleared $550 in February before it topped out arounf $775.  The stock subsequently eased into the $625-700 range and looks to be consolidating before its next move.
Zignals Chart Image

In third place is HDFC Bank (HDB).  The stock was ranked seventh in March.  While it's ranking rose it's action has remained relatively stagnant, with a drop-and-rally all to show for the past few months. $36.50 remains key resistance.
Zignals Chart Image

Fourth ranked is Intuitive Surgical (ISRG).  This stock was not ranked in March, but had featured in the past.  The stock had enjoyed a lengthy multi-year year which peaked around $600 in April/May.  It suffered a hard hit in July when sales figures fell.  This will likely take a few months to smooth out.  Up until the drop the stock was basing well and may look to $450 to find its footing once more.
Zignals Chart Image

CF Industries Holdings took fifth spot. Since the break of $100 the stock's rally has become somewhat erratic, but it has managed to sicne double in price to take it to $200 (although it bottomed at $36.91 in 2008).
Zignals Chart Image

In sixth spot is Continental Resources (CLR).  The oil and natural gas exploration firm has been in a steady price decline since the peak just shy of $100 in February.  The decline is relatively orderly and may evolve into a base around $60.  Until then, this is watchlist material.

Zignals Chart Image

In seventh spot is Concho (CXO).  This is a new player on the list. Like Continental Resources it has suffered a steady decline since the February peak as oil prices declined.  Look for basing action.
Zignals Chart Image

The last stock to qualify on the list is Randgold Resources (GOLD).  The stock is trading off its late 2011/12 highs close to the range of the 2011 base.  The gap below $100 will play as resistance on the recovery, but its first challenge will be clearing $95.

Zignals Chart Image

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