Thursday Notes
by J ~ March 4th, 2010
Not much has occurred since Monday’s follow through day. Today’s close was a bit better than Tuesday and Wednesday sessions. Maybe traders are waiting for Friday’s unemployment numbers. Some of the stocks I have mentioned recently were in the news today.
Here is what IBD had to say.
Intuitive Surgical (ISRG) gapped down, falling 8.77 to 354.03. Brigantine initiated coverage of the stock with a sell recommendation on the surgical equipment maker.
Priceline.com (PCLN) shed 2% in nearly twice its normal trade. The provider of online discount travel services is planning a $500 million private offering of convertible senior notes, as well as a stock buyback plan.
Action in Green Mountain Coffee Roasters (GMCR) is more typical of recent breakouts. It cleared an 88.75 buy point intraday Tuesday but closed below it. It did the same Wednesday and closed basically flat Thursday.
Chinese search engine Baidu (BIDU) gained 6.57 to 523.57 in about half its average volume.
The stock has been making new highs, but in light volume. That’s a sign that institutional investors may be losing interest in the stock. Its Accumulation/Distribution Rating remains good.
(CREE: 50.18 -4.42) might be finally building a buy point. If we get another couple of days of quiet movement here, I would say $70.67 could be a new buy point. I am hoping for more sideways movement with volume continuing to dry up.
And (JAZZ: 9.82 +0.15) had and very good earnings report. Keep an eye on this stock. It could be getting ready for the big time.
Jazz Pharmaceuticals Inc. reported a fourth-quarter profit on Wednesday on lower costs and a boost in sales from the sleep disorder treatment Xyrem.
The company earned $5.7 million, or 17 cents per share, compared with a loss of $56.9 million, or $2.04 per share, during the same period a year prior. Revenue rose to $38.3 million from $19.6 million.
Happy hunting!
March 5th, 2010 at 3:00 am
Hi Justin
You mentioned GMCR having broken out above a buy point but then closing below it. Does this make you concerned that it might be a false breakout? Is it not worthwhile waiting until nearer the close to see if the stock remains above its buy point? In which case you wouldn’t have bought GMCR.
Keep up the great work with this site.
Andrew
March 5th, 2010 at 7:10 am
Andrew – my buy point was $85. Please read my post on March 2nd entitled GMCR. Anyways, the point is after a buy point I become very mechanical. I set a stop (IBD uses 7% – I use 3-5%) and let the stock do what it wants. Also, watch volume – down days have been on light volume and up days have been on heavy volume. This is a great sign. Give GMCR more time and cross your fingers!