Filed under: Google (GOOG), Cisco Systems (CSCO), Alcatel-LucentADS (ALU), Stocks to Buy, Stocks to Sell
Armored vehicle maker Force Protection (NASDAQ: FRPT) has been slammed down to the single digits on fears that its sole product might be on the way out because of cuts in government spending. Who knows? The CEO says the company is doing fine, but the downtrending stock price is much more convincing. If the stock price is meant to make up lost ground, it should have no problem breaking out past $6, which it has not been able to do for the past few months. I’d avoid until the stock shows some strength.
Within the past few days, IDM Pharmacueticals (NASDAQ: IDMI) has had a huge run-up from under $1 to nearly $4 and a substantial drop to just under $2 — all due to some positive drug news that was already known since November 2007, and of course the CEO’s optimism about European approval. Do I believe the CEO? Yeah right! My distrust of CEOs is dwarfed only by my distrust of biotech CEOs! This company is not in the same league as other recently hot biotechs like Savient Pharmaceuticals (NASDAQ: SVNT) and Rigel Pharmaceuticals (NASDAQ: RIGL). Avoid, with a short bias on any spikes.
When I wrote this article about A-Power Generation Systems (NASDAQ: APWR), all the variables were aligned for a great run-up. I wanted to hold, but the volume and share price didn’t live up to my expectations, so I sold quickly. Now, this company, potentially the new First Solar (NASDAQ: FSLR) of wind energy, has nearly retraced to its original breakout area around $15, so the risk has gone down … but so has the reward. If you’re a long-term investor, this is a solid choice, but I need it to break its previous highs at $19 to make me a buyer again. Avoid, with a long bias if it breaks out.
Troubled telecom equipment maker, Orkit Communications (NASDAQ: ORCT) has recently doubled off its low on rumors of a big contract and yesterday the company got it. Very nice, but is it going to be enough to get the stock out of its nasty downtrending? I doubt it. Sure, some short sellers were squeezed, but even today, the stock price couldn’t hold onto its early gains and judging from the problems of sectors leaders Cisco (NASDAQ: CSCO) and Alcatel-Lucent (NYSE: ALU), the pain isn’t over just yet. Avoid, with a short bias if it continues spiking.
Local.com (NASDAQ: LOCM), a wannabe Google (NASDAQ: GOOG) search engine company is great for hypability and spikability, but in no way should this stock ever be considered for a long-term investment. All this company seems to know how to do is grow its traffic and lose more money. And then there’s its valuation. My blog
had 50,000 unique visitors last month, or 1/232nd of Local.com, and if it were valued as highly as this stock, it’d be worth $250,000. Yes, please! What a joke — don’t believe the hype when it comes to micro-search engines like this and Copernic (NASDAQ: CNIC), the former Mamma.com. Avoid with a short bias on any substantial spikes.
Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund. At the time of publication, Sykes held no positions in any of the stocks mentioned.
Entries (RSS)