Transferring ownership

I am in the process of transferring this blog to another company...

There will be no further updates from me on this blog.

Rajesh

Weekend share watch

BSS Group (BTSM.L) - Takeover by rival Travis Perkins (TPK.L). TPK is well positioned for recovery in housing market.

Severn Trent - Dull but defensive stock with good income. Up 30% in last 6 months. Returns to profit

Weekend share watch

BTG - (LON:BGC)
Speciality pharmaceuticals company BTG exceeded its financial goals in fiscal 2009/10 as it moved solidly into the black. Profit before tax in the year to end-March 2010 totalled £9.1m, compared to a loss of £11.3m in the preceding year.

Logica (LON:LOG) - bid speculation from Indian IT service (Infosys)

Trinity mirror  LON:TNI)- volume up 16%  - No news

Xstrata  (LON:XTA)- Relief rally after the last weeks sell off

Rockhopper (LON:RKH) - follow through on Oil discovery in Falkland. This may go up further.

Supergroup (LON:SGP) - Recent IPO and earnings. Fastest growing company.

Apple effect

ARM Holdings, chip maker, listed on LSE has been rising every since Apple announced iPad late last year. Stock is up nearly 30%. It has momentum and if you look at charts it has linear upwards movement. There is news that it might be taken over by Apple. It is due to announce results next week. So it still has some legs to go further.

Breakout for Monday

Stocks to watch:
AVE.L - Avis Europe - Earnings due next month. Recovery play.
RBS.L - Follow through on recent breakout. Analyst upgrade

Pre-earnings announcement drift.

Often you see a stock starts rallying even there is no news. In such cases look for earnings due date. A stock will start rallying 2 to 3 weeks before earnings. The phenomenon is known pre-earnings announcement drift.

These are usually stocks will good growth rate i.e. companies where EPS and sales are in double or triple digits. Now if you get into such stocks and a stocks rallies 10 to 20% before earnings date, make sure you book your profits before earnings are released.

Last week there were three such examples.

Aggreko

Aveva group

Autonomy

Obama Condoms - For hard times

You can sell anything in Big Apple....provided you know how do it. This guy is cashing in on Obama....his punch line was "For hard times...."

Slave of Wall Street - Take 2

One way Wall street

Slave of Wall street

Recently I was on holiday in USA. On my tourist tour, I visited Wall Street. This guy was standing outside New York stock exchange and asking people if they could lend him a dollar to buy a politician. Surprisingly people were actually paying him.

This was a perfect example of marketing and human phscyology at display. Now imagine if this guy was a beggar, how many people would have paid him? The way he put his point had an impact.

How you say it or present it is very important. Think about it!!!

Stocks breakout

Some stocks with had a breakout today

PIC - earnings due tomorrow.
RNK - Up 15% post earnings 2 days ago
MEC - earnings due 17 March
FXPO - earnings due March 23
AGK - New contract and Earnings due on 03rd March

New contract for chreming group

LON:CHG - Chemring up 9% on the new of new contract with Kilgore Flare. Volume up 500%
A good buy if the share doesn't gap up or down more than 4% tomorrow.

Earnings reports

Some shares with good earnings but lack volume...

Axis-Shield Interim Profits up +18% EPS up6.74p +136%

H & T Group Interim Profits up +28% EPS up 16.12p +48%

Admiral Group Interim Profits up +29% £ EPS ups 28.50p +4%

Aggreko Interim Profits up +23% EPS up 27.07p +58% (This had a breakout yesterday)

Hiscox Interim Profits up +42% EPS up 33.20p +53% - slowly drifting upwards...goes ex dividend next week

Share of Interest

Heritage Oil (HOIL)

..major discovery in the Kurdistan region of Iraq...

Share on the rise. Oil sector is generally on rise on rising oil prices.

Share of interest...

ISAT:

Profits up 23% in last quarter.

Recommendation from Goldman sachs . Has rised 7% on Friday after the recommendation.

May go up 20 to 30% from her....

Rally so far..

In last 6 weeks, market have risen more than 25%. There is still debate about where this is a bull market or whether this is a bear market rally. People who got in early in this rally have made some heatlthy profits. Miners and finance sectors have seen the biggest gain.

There is still some steam in this market. However some correction might be around the corner which is good for this rally. Some correctin will help for the next leg of rally...

Ridge Mining

..rally on bid news from AQP....both seems a buy after some pullback.

M&A SAATCHI

Earnings breakout.

Advertising agency M&C Saatchi posted an annual profit of £14.1m, up 14% from the year before and said trading for the first three months of 2009 was in line with company expectations.

Long and Short

Looking at the high volume breakout today, AQP and ENRC look convincing. Miners rallied on back of news from Rio that metal will rally in second half this year. Rio itself has doubled in last 6 months. These look a good bet for short to medium term.

BARC has trebelled in less than 1 month. Tomorrow's FT carried the headline that BARC will need raising cash soon. Time to short the stock.

British Gas - Earnings Breakout

British Gas had a high volume breakout of more 10% on good earnings report. This could be a good buy if there is follow through...