The next multi-bagger...

M

michaelscott

I've been looking through several screens this morning and attempting to find stocks that I believe will at least double in the next 3-6 months.

At the beginning of the year, I had these feelings that the multi-baggers were done for now. However, I was very very wrong. In fact, when I have had these feelings before that the market cant do something then it proves me wrong many times over. Lets review a few of the multi-baggers since the start of the year:

- OPBL Optionable from 2 to 9 dollars and then back again
- EXEG- From the pennies to over 5 dollars
- FSLR- from the teens to the 60s
- ULTR- from the low teens to the 20s
- TSO- From 60 to near 120
- VLO- From 47 to 74, not quite a double but wait a few more weeks...
- AMZN- From the low 30s to the 60s
- GMCR from the high 40s to the high 70s

Now I am having those feelings again that there will be no more doubles or triples for the rest of the year. So that means there are probably a lot out there that I am just not seeing.

So here are the ones that are obvious to me:

Airlines-
(This is if oil turns down. If it doesnt turn down, then these picks will not double)

HA
JBLU-

Others:

CLWR
OPXT
XFML

Please post up your own picks of what you believe will more then double (or come very close) in the next 3-6 months.
 
The coal company's chart is all over the place.

MDII has to go through the upper resistance for me to be confident in it. In 2005, it went to these levels only to suddenly tank back down to the depths below. This was a no-brainer to long at 40 cents.

As for CPTC, it appears there was a high volume selloff in mid-April and now the price is forming up into some type of triangle. I'd like to see the triangle played out a little more before I would enter my position.

All of your picks were very good at the beginning of the year, but I get the feeling I might be checking into the roach motel at this point in the game with them sorry to say. I might be able to check in, but not be able to check out.
 
LNX, URRE, GIGM, MED, KMA, CHINA. Holding my whole portfolio in these six small caps. One of them is bound to be a winner.
 
These stocks concern me.

LNX, URRE, GIGM appear to have violated the 20 day moving average and are now in the lower Bollinger Band. This demonstrates a loss of momentum. I have learned the hard way that its best to set stops slightly below the moving average line that the stock is moving up. If its moving up the 20 day, then you set your stop at the 23 day. Of course they could bounce back over the 20 day and resume their upwards course, but why chance it. You can always re-enter your position once they regain momentum and move back above their averages.

MED, KMA and CHINA appear to be chancy swing plays where I cant see the potential. MED appears to have been in a bear market for the last year or so. KMA's price action seems flat. China appears to have never regained momentum after the February correction. The rest of the market regained momentum, but China did not. There is also a head and shoulders on the chart for CHINA.

I would take profits in LNX, URRE and GIGM. MED, KNA and CHINA are too risky for my tastes and I cant see the potential.


Quote from subban:

LNX, URRE, GIGM, MED, KMA, CHINA. Holding my whole portfolio in these six small caps. One of them is bound to be a winner.
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This concerns me too.

The first concern is that its a small cap pharmy and we all know what can happen to these things with one wrong announcement. Fortunately, I dont see any huge gap downs in the last few years so I think we might be safe.

Secondly, this reached a high in late January and then lost momentum from there. While the market has been going straight up since the February correction, SVNT has been drifting downward making lower highs and lower lows. The good part is that a bullish falling wedge has formed the last 3 months indicating that it will turn around and my calculations state that a 50% retracement was made at 11.25. Draw the chart and connect 15.75, 14.3, and 13 together. If the price goes over that trend line, then I would feel safe in longing it. My drawing shows that the price would go through the trend line around 12.25.

I'll give you another tip on SVNT. Use the 10 and the 25 day simple moving average. When the 10 crosses above the 25, its a no-brainer long. When the 25 crosses the 10, its a no-brainer sell. I would not enter into this trade until the 10 crosses above the 25.

Target price is 20 after the 10 crosses the 25 and that trend line we discussed has been crossed.

Quote from DHOHHI:

SVNT - Phase 3 trial ongoing - Puricase - gout drug - one estimate is $1 billion in revs
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Here are some common situations of multi-baggers that I have seen over the years:

1) Cyclical baggers- Single digit stocks that never seem to escape their trend channel. Example, HAUP. HAUP will continue to drift down and will be a buy in the 3s. Right before Christmas we will start to see the gap up. BRLC. It always seems to hit a high around Christmas and then drifts back to the low single digits as the year moves forward. Then we start seeing the big gap up in August.

2) 52 week high baggers- Stocks that have no overhead resistance and are trending above the 10/20 day moving averages. Example: Look at a stockscan of stocks on the NYSE hitting 52 week highs. Most of them are multi-baggers (I looked). In most situations, they are trending above the 10/20 with no overhead resistance in sight.

3) Measured move baggers- Stocks that trend up then make a calculated move back down and then trend up again. Example: FTEK, SVNT, JSDA. Basically that are on the move up then correct (usually during a period of market weakness) and then move back up in calcuable measured amounts.

4) Lucky baggers- Stocks that have this surprising news that makes the stock jump to incredible highs.

The 52-week baggers are the easiest to spot as you can go to stockcharts.com and simply look them up. The cyclical baggers take a little experience to know them. The measured move baggers take a little more time in working with charts to be able to see what is taking place. The lucky baggers being the most difficult to spot.

When using the 52 week high method, I would avoid .OB (bulletin board) stocks and those listed on the AMEX. I would prefer to stay with NYSE listed stocks. The reason is because those listed on the AMEX and the Bulletin Board are highly manipulated lower class of stocks that can turn on a dime. The NASDAQ is a little better, but the NYSE listed companies are the highest in the food chain with much tougher listing requirements. Stocks with analyst coverage are preferable too. It helps if a few analysts are bulling up the stock and gives me confidence that the price rise isnt just a pump/dump.

This is just my preference though. I know some others here have great success with the .OB stocks.
 
michael, have you used Trade Ideas by chance? It's something that I've used to find TA moves in stocks...such as breaking out of opening ranges, up certain amount of days in a row, bottoming, weakening, etc.

If nothing else, as I myself am not a "day-trader," it's a good way to find investment candidates.
 
Id be willing to look at it.

Quote from SiSePuede!:

michael, have you used Trade Ideas by chance? It's something that I've used to find TA moves in stocks...such as breaking out of opening ranges, up certain amount of days in a row, bottoming, weakening, etc.

If nothing else, as I myself am not a "day-trader," it's a good way to find investment candidates.
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