Would you buy Yoma now?

One year ago, Yoma was all the rage, giving investors as much as 300% returns. The stock has since peaked out at 1.045, and has been trending lower since.

It actually seems a good short candidate now, having broken down fro 200-D MA. Watching for a shorting opportunity.

2014 candidate #3 and 4: The coal miners

In the previous article, I wrote about steel, and how coal is used to manufacture steel. Since demand for steel is expanding, so demand for coal too!

The price of coking coal grew about 5% since the end of the third quarter — for coal miner Walter Energy (WLT).

The chart for Suncoke Energy (SXC) is even stronger, breaking to a new 1-year high. Of course, this is not the time to buy yet, but I am definitely watching.

2014 Candidate #2: Invest in steel?

Goldman Sachs recently upgraded the steel sector stocks. Its reasons are:

• The price of steel — the final arbiter of any debate surrounding steel’s demand — is as strong as it’s been in more than a year.
• Price of metallurgical coal, the material used to smelt iron, has grown, suggesting that steel producers are already seeing demand ramp up at least enough to merit higher smelting material prices.
• The Baltic Dry Index (of maritime shipping costs) has risen considerably since June, from a low of 806 to the current price of 1600; it had been as high as 2115 in early October. Although dry bulk vessels can carry all sorts of goods, the bulk of the recent charters and subsequent rise in charter prices has been fueled by a serious ramp-up in requests to haul iron ore… and most of it is bound for China, where steel production is already up 10% this year. Yet, it still isn’t enough. Forecasters believe demand for steel in China will grow at an annual pace of 3% to 4% through 2020, and the recent surge in iron ore charters validates the outlook. Considering the country drives 45% of the world’s demand for steel, if China’s buying a lot more steel and iron ore than usual, global supplies will be tightened.

Using T3B screener, US Steel (X, NYSE) stands out as an excellent candidate, trending nicely up since Sep. 

Like most stocks, it looks overextended for now, but definitely deserves a place in my watchlist.

2014 Stock Candidate #1:Pitney Bowles (US)

The local stock market is really unhappening these days, with many listless stocks. It is in the US that things are more exciting, with many stocks that are in nice uptrends. Using the T3B screener, I have located one such stock, Pitney Bowles (PBI, NYSE).

This company, which was once known solely for its postage machines, now provides hardware, software and services to integrate physical and digital communication channels.

Recently, the company announced the completion of the sale of its management services business for $400 million. It said it will use the proceeds to pay down debt.
On Oct. 29, the company reported Q3 earnings that were $0.09 higher than the Zacks consensus estimate, and the stock jumped to a new high over $22. (source: InvestorPlace Insights)

As can seen from the chart above, the stock has doubled this year, and the best time to buy was actually around September. Looks overextended now, and will be watching for pullback to consider entering this stock.

No action is the best course of action

Other than having Apple in my trading portfolio, I currently have no more shares. This is because I see little reason to buy shares, now that market is buoyant. However, I am still bullish on US stocks, and is currently using the T3B system to screen for stocks to buy if market weakens. I will be posting this.

Should we invest in Europe?

BNP Parisbas' Damien Kohler says we should invest in European small and mid-caps. Reasons are these companies are trading at attractive valuations, and could take off in a big way over the next 12 months if things continue to improve in Europe. What are these companies? They are:

1. IMI plc (Britain)
2. Nutreco (Holland)
3. Nokian Renkaat (Finland)
4. DS Smith (Britain)
5. Valeo (France)
6. Klepierre (France)
7. Arkema (France)
8. Atos Origin (France)
9. Scor (France)
10. GEA Group (Germany)
11. Weir Group (Scotland)