Hey all. Happy Thursday. It looks like it will be a good day for us but not quite great with Irish news and jobless claims. They dropped to 439,000 today. Trina Solar (TSL) is up over 3% in the early goings this morning, which means we can get out of that one pretty quickly for a solid 4-5% gain. I will be looking to exit within the first few minutes. Dress Barn (DBRN) should also do well from the the fact that the market is looking bullish this morning. Unfortunately, we are still holding a Short Sale on Chico’s (CHS) from yesterday at 10.90. The stock is poised to open in the 11.20s. I am going to hold onto it for a bit and see what happens. I may lose 4% instead of 3%, but this stock has moved way too high on too little.
Let’s get into another Buy Pick this morning…
Buy Pick of the Day: Marvell Technology Group Ltd. (MRVL)
Analysis: Marvell Tech (MRVL) is reporting earnings in afterhours tonight. The company should have a pretty strong day moving into earnings especially with the market looking to blast off today. When we have have had 6-7 red days in a row, the market has to correct at some point in some degree. All it takes is one catalyst, and today, we got it with jobless claims and Ireland! Ireland is a very small economy, but a loan to ease a crisis is all we needed to feel optimistic again.
Marvell looks very solid because the company has dropped so much lately and is undervalued at this point. The.png)
stock has dropped over ten percent in the last week and a half, without a green day in the past eight sessions. The negativity seems a bit unjustified. The company is expected to improve its earnings this quarter from one year ago with an EPS of 0.45 vs. the expected 0.38.
The company is in the semiconductor sector, which has had its struggles in the last month. Yet, it has dropped so far that it has an RSI below 50 at 47, it is nearing its lower bollinger band, and it is oversold. With the market moving upwards, the stock should definitely see buyer interest increase especially with earnings on the line. Anyone that wanted to sell has gotten out and anyone that held through the bad days will definitely continue to hold, creating a supply loss.
Get in early into this one and enjoy a nice ride.
Entry: We are looking to get involved at 18.90 – 19.10.
Exit: We are looking to exit for a 2-3% gain!
Stop Loss: 3% on bottom.
Good Investing,
David Ristau
