Candlestick Forum Long Term Stock Picks Newsletter January, 2016

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Jean Lawson
5 years ago
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1 Candlestick Forum Long Term Stock Picks Newsletter January, 2016 Current Market Outlook: Remain cautiously bullish for now. The market is back in a confirmed uptrend, but with the recent gyrations back and forth between the bulls and bears, who knows how much longer that will last. To say we are in a tough environment for growth stock investors could be the understatement of the year. And most experts expect even more market volatility in Still, there are always opportunities out there that we can exploit. Read on for a few examples! Current Market Commentary: First of all Happy New Year! On behalf of all of us here at the Candlestick Forum, I hope you had a safe and wonderful holiday break with friends and family! Hope you went easy on the egg nog, too. So here we are in This year could be a key transitional period for the U.S. as we start seriously studying and choosing our candidates for the next President of the United States. History tells us that an election year is usually a net positive for the stock market. Will this year be any different?

2 Only time will tell, of course. But we will continue to showcase what we feel are the most attractive stocks for longer-term holdings in the virtual pages of this newsletter. Most long-term growth stock investors will say Good riddance! to 2015, as it was one of the most challenging years on record to make any exciting amount of money on Wall Street. To understand what I m talking about, take a look at these stats Stocks ended the year on a sour note, with the Nasdaq swooning 1.2% and the S&P % on news of higher jobless claims, weak Chicago factory data and new Iran tensions. Both indexes ended below their 50-day moving average lines, not a positive development. For the year, the S&P 500 and the Dow ended in negative territory, their first annual declines since was the worst year for the S&P 500 since the bull market started in 2009 with its annual loss of 0.7%. The Nasdaq squeaked out a 5.7% gain, its weakest in four years. As you can see from the 2015 charts of the major indices below, last year was nothing to cheer about if you were a long-term investor

3 Dow Jones Industrial Average Chart 2015 S & P 500 Chart

NASDAQ Chart - 2015 As you can plainly see, unless you were extremely nimble (or net short during the August Chinese Flash Crash), easy money was NOT there to be made last year.

4 NASDAQ Chart As you can plainly see, unless you were extremely nimble (or net short during the August Chinese Flash Crash), easy money was NOT there to be made last year. And the financial news looks pretty bleak for this year as well. Here are some of the headlines in the most recent Investor s Business Daily: Stocks Limp Out of 2015 Iran Speeds Missile Program Social Security Is Not Secure Global Stocks Year To Forget Initial Jobless Claims Spike Chicago Factory Activity Dives Rough Year For IPOs Likely Now before you go shopping for Prozac, there are some positive factors facing us in 2016 too. For example, as I stated above, election years are usually positive for the stock market. Also, as a contrarian indicator, most newsletter writers are currently overwhelmingly bearish, which is actually

bullish for the market. Finally, the market almost always climbs a wall of worry and we have a doozy of a wall right now! So what will the market do in 2016?

5 bullish for the market. Finally, the market almost always climbs a wall of worry and we have a doozy of a wall right now! So what will the market do in 2016? I can tell you what it will do with 100% accuracy A better answer? It Will Fluctuate! We will let the market TELL US what it s going to do and act accordingly. So let s see what the general market charts are telling us right now Major Index Chart Analysis: Dow Jones Industrial Average You can just sense the general level of frustration owned by most investors and even swing traders with a quick glance at these charts.

6 Textbook candlestick reversal signals are being negated just a few days later, so there s just not any traction to be had as far as the general markets are concerned. The Dow has been in a trading range since November. The bears have tried to take the index down three times to no avail so far you can see where in the chart above once in mid-november and twice in mid- December. The major moving average lines are starting to trend slightly south again, not a good sign. Stochastics indicate possibly more correction to the downside, as they are crossing over in the 75 area and heading south. The recent Bearish Harami is being confirmed as well. A decisive move above 18,000 or below 17,000 will demonstrate who s in charge the bulls or bears. Until such time we re still in a trading range. S&P 500 The S&P 500 chart shows almost the exact same characteristics as the Dow s. The bull / bear moves here are 2,100 on the upside and 2,010 on

7 the downside. NASDAQ The NASDAQ s chart shows more of the same as its big brothers. The bull / bear moves here are 5,200 on the upside and around 4,950 on the downside. Even in this sketchy market, there are lots of great stocks and charts to choose from. Let s take a look at some of those now

8 Favorite Long-Term Stock Pick of the Month: About the Company: Stamps.com Inc. (NASDAQ: STMP) Stamps.Com Inc (STMP) - Provides electronic postage and U.S. postal services for individuals and businesses via Stamps.com. According to Yahoo Finance: Stamps.com Inc. provides Internet-based postage solutions in the United States. It offers solutions for mailing and shipping various mail pieces, such as postcards, envelopes, flats, and packages using a range of United States Postal Service (USPS) mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The company s products and services comprise USPS approved PC Postage service that enables users to print electronic stamps directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection. It also provides multi-carrier shipping solutions under the ShipStation and ShipWorks brands; mailing and shipping integrations solutions comprising electronic postage for transactions to partners who manage the front-end process; sells NetStamps labels, shipping labels, other mailing labels, postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies store; and Stamps.com branded insurance to insure mails or packages. In addition, the company offers PhotoStamps, a patented form of postage service, which allows consumers to turn digital photos, designs, or images into USPS-approved postages. It serves individuals, small businesses, home offices, medium-size businesses, and large enterprises. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December Stamps.com Inc. was founded in 1996 and is headquartered in El Segundo, California.

Why We Like It: Stamps.com has a penchant for blowing away earnings estimates quarter after quarter, as evidenced by the big spike gaps in the stock s chart.

9 Why We Like It: Stamps.com has a penchant for blowing away earnings estimates quarter after quarter, as evidenced by the big spike gaps in the stock s chart. Those estimate beats have led to the stock doubling this year. According to Investor s Business Daily The stock s fundamental and technical metrics put it at the top of the highly-ranked Internet retail group, ahead of even IBD Leaderboard stock Amazon.com. With zero debt, last quarter earnings up 61%, prior quarter s up 76%, last quarter sales up 37%, and a sizable ROE of 22%, STMP appears to be a solid hold for the long-term. Chart Analysis: STMP Six Months Daily I ve liked this stock for quite some time, and now seems to be as good a time as any to recommend it. The gigantic spikes up on huge volume

10 indicate earnings announcements, and the company s blowing away thereof. You may be able to wait a bit to get in at a better price, since the price action and stochastics are angling down in the slightly overbought area. I think you can make a test buy in the next few days, barring a major market pullback perhaps in the $106 to $110 area. The sell stop looks to be around $100. Stocks on the Watch List: There are lots of other fundamentally strong stocks and decent charts to choose from in this admittedly sketchy market. Just be extremely nimble if you decide to nibble at a few INC Research Holdings Inc. (NASDAQ: INCR)

I N C Research Hdgs Cl A (INCR) - Provides Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries. INCR s fundamentals are extremely strong.

11 I N C Research Hdgs Cl A (INCR) - Provides Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries. INCR s fundamentals are extremely strong. Last quarter EPS came in at +152% and prior quarter at +124%. The company is growing earnings at an annual rate of an exceptional 243%! The P/E Ratio is a reasonable 28, so there s some GARP (Growth At A Reasonable Price) there too. After last week s little one-day head fake (notice the long-legged Doji candle), I think it s OK to buy some INCR right here, and back up the truck and buy on a strong breakout above that overhead resistance at $50. The sell stop looks to be in the recent support area of $44. Autobytel Inc. (NASDAQ: ABTL) Autobytel Inc. (ABTL) - Provides internet marketing services that help automotive dealers and manufacturers sell new and used vehicles.

According to Investor s Business Daily, ABTL is ranked Number One in the Internet Content group. That s no surprise when you check out the company s fundamentals.

12 According to Investor s Business Daily, ABTL is ranked Number One in the Internet Content group. That s no surprise when you check out the company s fundamentals. With a 3-year EPS growth rate of a solid 99%, current year earnings estimates at 47%, last quarter earnings coming in at +96%, a 3-year sales growth rate of 25%, and last quarter sales coming in at +47%, ABTL has a LOT to like, and looks good as a mid- to long-term holding. Stochastics are supporting a buy as they scream skyward. ABTL looks like a good buy right here, stop around $20. LeMaitre Vascular Inc. (NASDAQ: LMAT)

13 LeMaitre Vascular Inc. (LMAT) - Develops disposable and implantable vascular devices to address the needs of vascular surgeons and interventionalists. LMAT is another stock that I wish I had recommended sooner. I ve liked it for some time, but it s a little on the thin side. The company s fundamentals are solid. With a 3-year EPS growth rate of 34%, current year earnings estimates at +61%, last quarter earnings coming in at a strong +120%, a 3-year sales growth rate of 12%, and even a small yield of 0.93%, this small-cap stock has some attractive things going for it, and looks good as a mid- to long-term holding. Stochastics are neutral here, so with the chart in a nice uptrend, this stock looks like a good buy right here, stop around $16.

Candlestick Forum Long Term Stock Picks Newsletter December, 2015

Candlestick Forum Long Term Stock Picks Newsletter December, 2015 Current Market Outlook: Remain bullish for now. It s hard to say much more than stay bullish in the current market environment. The major