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Varchild2008 (85.34)

$11 Dollar Wonder Stocks



August 02, 2010 – Comments (1)

I have nearly 200 stocks in my CAPS Portfolio.  Of those the following are $11 dollar stocks.

And I WONDER if I caught some kind of crazy pattern?

AA  $11.71     UP trend

PLD $11.32     UP trend

DHI  $11.25   UP trend

ROCK $11.02   Sideways

APOG $11.12     Sideways

3 out of 5 are clearly up trending stocks....  2 are trading sideways..... Nothing seems to be headed, at least for now, for a dip.

Of these 5 stocks:

A)  3 have to do with Home building  (PLD) (DHI)  (ROCK)    PLD and DHI are up trending.... ROCK is sideways.    

While ROCK trading sideways is SMALL CAP.......  Both PLD and DHI are Large Cap.

B)  AA   Up Trending Large Cap

C)  APOG    Sideways trending small cap.

So... The crazy pattern obviously is that just by scrolling through my CAPS stocks and searching for $11 stocks..... I come up with 5 stocks and only the LARGE CAPS are UP TRENDING.....  While the smaller cap stocks are trading Sidways.

What does this mean?

I think it means that more investigation into Small Caps is required.    Large Caps may be outperforming some Small Caps because they have much better International exposure.....

This might be yet again... an AMERICA story.... Where small caps with larger exposure to America are just losers compared to their Bigger Competitors.

So.. Maybe that's an investment strategy???? Look for Large Caps up trending at $11   +- $2   that clearly is outperforming competitor small cap stocks.

The conicidence here can't just be coincidence? 

(GOOG)  +  (RIMM)   both are stocks out of favor with Jim Cramer....  Could it be that you just need to find the right kind of Large Cap to invest in today?  One that isn't too big and one that doesn't have excessive exposure to CHINA or AMERICA?

1 Comments – Post Your Own

#1) On August 02, 2010 at 10:46 PM, awallejr (56.95) wrote:

Well I wouldn't take Jim Cramer picks seriously since he switches positions as a true hedge fund operator would, on a dime.

As for AA I bought that last year and sold it earlier this year before the correction.  Glad I did.  I bought it again last week when it went under $11. 

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