Chris Lau
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Chris Lau in Value Stocks,

Top Weekly Value Ideas

Despite most of the trading ideas added in the last week to Bottom fishing for value are having a negative ROI, the total ROI is up over 720 percent. Short-term ideas tend to fluctuate, while long-term ones outperform when the thesis plays out.

The bearish ideas include Annaly Capital (NLY), Starbucks (SBUX), and IBM (IBM). Fundamentals for these companies are still strong, but after the run-up, investors should consider locking in profits. Bullish ideas added include International Paper (IP) and Allere Inc. (ALR). Abbot’s (ABT) buyout of Allere was delayed due to the latter needed to update its 10K filings. As these filings complete, ALR’s stock price will move closer to the offer price.

For the month, the top performing calls were Himax Technologies (HIMX) – bullish – ROI 77.3%. Santander (SAN) has a 35.2% ROI so far. Macy’s (M), an earlier bullish write-up made in May, has a 50% ROI. It turns out May’s drop was temporary. Market fears for lower shopping at malls proved over-done. Summer sales may be slow year-over-year (Y/Y), but expect back to school driving higher sales.

In the Micro Cap value strategy, Glu Mobile’s (GLUU) bullish idea is noteworthy. 

The price target is $3.27, whilst the stock closed at $2.63, up from $2.27. 

Kindred Bioscience (KIN) – bullish- and Tonix (TNXP) – bearish – are adding meaningful returns to the strategy.

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