Each week I cover stocks that we can consider buying now or soon. We also cover the stocks to trim on profits. Make sure to visit the “Getting Started” section on how to use this piece.
We are focused on riding the trends and finding the pivots of great stocks. We are also looking for companies that can be great. Notice the emphasis on great. Set the bar high to pull your profits upward.
For technical screening and charting, I use TradingView. I’m running my screen for stocks with RSI under 70 and a buy rating on multiple oscillators.
For fundamental screening and factor comparisons, use either Stock Rover or Seeking Alpha (or both). I primarily look for shareholder yield, strong or improving EBIT ratios, strong or improving FCF numbers, and strong or rapidly improving financials.
Here’s what is drawing my attention this week.
Focus Stock Ideas This Week
The following stocks are near inflection points for buying or starting to break out. In either case, we look at both the daily and weekly charts to give us clues as to whether now is a good time to enter. I also include quick thoughts on the company at this point.
Barrick Gold (GOLD)
Barrick is increasing dividends and making special payouts from divestitures that exceed the dividend this year. Here’s what could drive this stock up a lot: pending regulatory actions on Bitcoin and cryptocurrencies interactions with the financial system. A lot of money can flow back into gold and gold stocks. So, things are very good with Barrick without Bitcoin regulations, but potentially amazing with.
Weekly chart is is in the middle range and rising. So very buyable.
Daily chart sniffed overbought and pulled back just a little. One good down day, or better yet two, makes this very buyable. Keep close watch and buy any big down down day or two down days in a row.
MP Materials (MP)
The story remains the same. Improving foothold on domestic rare earth metals market which is strategically important to the U.S. and magnets which are integral to EVs. A few hurdles to clear, but I believe will be cleared in time. Main hurdle is severing China connection which the DOE has made clear. Given status as only rare earth metals mine in U.S. right now, once processing is online here, I’d expect that Chinese investor Shenghe is bought out. DOE has already given company money, I expect more. Company expects to 4x current revenues by 2023 to over $400m which I think is about right +/- a year.
The weekly chart is in the midrange but weak. So, only small nibbles for now from investors without a position or sell cash-secured puts.
Daily chart is closing in on oversold and volume has fallen, so short-term correction appears to be within days of ending. Stock is volatile though, so a small rally could be met with renewed selling pressure to bring the weekly chart down. Could very easily see lower $20s as SPACs are under attack in general and narratives inspire emotional trading. If you see lower $20s on this one that coincides with oversold or nearly oversold on weekly chart, back up the truck.
Ontrack (OTRK)
Ontrack continues to expand its AI-powered and telehealth-enabled provider network coming to terms with more provider networks. Picking up a lot of business related to Medicare patients, which is in addition to VA deal. I see massive growth here. Losing the Aetna deal, which might be temporary, I think is a chance at a “do over” to buy this one.
The weekly chart touched oversold and looks like it might touch again this week. For any growth oriented investor, this is a must own in my opinion. The upside is enormous and there’s not much downside (we love that).
The daily chart is flirting with oversold.
SunPower (SPWR)
The most financially well backed company in solar with Total (TOT) as majority owner. Growth in solar is massive. Infrastructure plan is being called “stealth green new deal” by WSJ. International governments are pushing more aggressive carbon neutrality goals. Part of rebuilding the world is flipping the energy system to be mostly renewable.
The weekly chart is approaching oversold. Hype wore off, now the froth is getting blown off. I think huge buying in lower $20s or upper teens would materialize.
The daily chart touched oversold recently and could do so again, at which point weekly is nearly oversold again. Again, signs point to big support just a few bucks down. Be ready to move to a full position if you are not already there. If you are, you can sell puts if the price gets to around $20/share just to collect premium.
ViacomCBS (VIAC)
The Viacom library is massive and highly valuable. Paramount+ is in the group of 5 streamers I think are “must owns” for most people. Leading positions in sports and news is a massive plus. Make sure to watch 60 Minutes, the clock is ticking on a rebound here. The previous price high I think we will be met again, it”ll take some time though without massive leverage of a big hedge fund. That hedge fund unwinding is what pushed Viacom down so far. That’s over.
The weekly chart is nearly oversold again, but looks like will avoid outright oversold. See the green trend line I drew. That was resistance, then support, but only broke on the pandemic. I don’t think it breaks again and if it does, is very temporary. In fact, it might mark a new uptrend.
Daily chart is oversold and ready to pivot upward. Could take a month or two to really move up, but major selling pressure is abating.
Discovery (DISCA)
Not a must own for streamers, but integral to building content bundles for cable and for bundles that are coming to streaming packages offered by internet providers, i.e. cable and telephone companies. Also a buyout target in my opinion. Sold off by same hedge fund implosion as Viacom. Similar charts.
Weekly chart is forming exact same patterns as VIAC. Buyers are starting to offset sellers. Selling has fallen off in fact.
Daily chart has been oversold and might revisit one more time. Lower $30s looks pretty firm.
Disclosure: I am/we are long MP, GOLD, VIAC, DISCA, OTRK, SPWR.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
