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DigitalDisco (< 20)

Weekly Watchlist

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July 15, 2013 – Comments (0) | RELATED TICKERS: WNC , RGEN , CLR

The 3 month chart for production and exploration companies in the oil and gas industry looks like it may be bottoming in its 2013 downtrend which provides a couple of unique opportunities this week.  The danger is that while it has broken above its 30 day SMA it has done this 2 other times during the 2013 slide, only to continue the decline a short while later.

 Biotecs are also showing promise with what looks like a continuation of their 24 month rally after a brief little sideways breather for the last 3ish months.

Bringing up the rear is the construction and farm machinery sector.  Frankly the 3 month chart just looks messy and chaotic with no clear directional guidance, but it at least appears to be primed for a move one way or the other. 

Having narrowed down my sectors, here are the stocks that I'm watching for entry points this week:

Continental Resources, Inc (CLR)

This stock has been on fire over the past few weeks and is once again dancing in the neighborhood of a new 52 week high.  I'm watching this one to converge on its 30 day SMA and then hopefully bounce higher.  If it does, my expectations are tempered as it has a tasty PEG ratio of .78 but a nosebleed of price to book of 5.2.

 EPL Oil & Gas, Inc (EPL)

This one is another "meh" opportunity as it broke its 30 day SMA 2 months ago and doesn't have a solid support line, so it may have reversed.  Until that is confirmed though I will be watching for an upward movement from this one.   I don't expect it to have huge legs should it resume its uptrend but profit is profit and I'm not picky.

Repligen Corporation (RGEN)

I've been watching this one for a few weeks now and it has been a moonshot marching pretty quickly from around $7.50 to around $10 in those few short weeks.  It's quite a ways off its 30 day SMA so I'm waiting for a pullback to bring some value back to the table as I don't feel like it has a ton of room left beyond where it's priced right now.

Rosetta Resources, Inc (ROSE)

This one is sort of a bummer as it looks like it may be in a downtrend but I'm still holding out some hope.  The basis for this hope is a stupidly low PEG ratio of .36.  Not digging into the fundamentals of this company I'm not certain what may be holding them back from extracting present value from their future growth but it appears to be disjointed at present.  Having closed just below its 30 day SMA today doesn't bode well but it does have tested support down in the ballpark of $41.00

Wabash National Corporation (WNC)

I wish I would've typed this over the weekend like I should have so that I would've looked smarter today.  WNC is one of the better looking options on my watchlist right now as it is currently in a pretty clear sideways trend and may have broken out today.  There should be quite a bit of upward movement as well since the PEG ratio is a thin .45 and the PE is below 7.  With RGEN surging as much as it has this is the only one on the list that I'll be opening up on CAPS at this moment.

 

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