New Buy: SKBI

Last week the crazy market triggered our HITK stop.

Today I would suggest to buy SKBI with a 1% trailing stop and initial stop loss of $7.82.

Update and new buy

UPDATE

ONP too high. We missed the train this time...

1. We should have gained something with our AAPL Call-Put combination.

Personally, I made around 10% in a couple of weeks. I hope you did as well.

2. Some time ago our LANC broke its stop loss and we should have closed our position with a modest 5% gain.

3. I would buy some ONP with an initial stop loss price of $8.49

New Buy: HITK

I usually do not like to buy stocks that have been moving up and up recently, but in this case I would make an exception.

Technically HITK looks like having failed a head and shoulders (that often results in a continuing trend). Slow stochastic just gave a buy signal.

In addition to that the company fundamentals look very good: better value than industry (PE less than 10), good quick and current ration, no debts, high profitability and effectiveness. And finally, a good growth.

I would suggest to place a 1% trailing stop buy order after 10 AM. Initial stop loss at $20.84.

Let's bet on the iPad

The iPad will be on sale in a couple of days. Will it boost Apple's shares or will it disappoint Apple's customers?

I have no idea, honestly. For some aspects I do like it, for others I am afraid it cannot do many things without paying extra bucks.

So, what should we do? Well, regardless on iPad's success or failure I would expect Apple's shares to move in one way or another.

I would suggest to buy both Call and Put options on AAPL. I just bought the same amount of contracts for April 17th AAPL options with strike price $235. The cost of 1 call + 1 put contract should stay close to $6. This means that if AAPL goes under $229 or above $241, then we gain.

But beware: if AAPL stays around $235 we lose. So just bet a few hundreds dollars on this.

New buy

After a long time I am going to place a new buy order.

I would suggest to buy MORGAN STANLEY CHINA A SH FD COM (CAF).

I would suggest a 1% trailing stop buy order and an initial stop loss price of $24.98.

Some new buys

Two actions for us today:

1. Let's update our BUCY stop to $46.65

2. After 10AM let's buy LANC, GIGM and VR with a 1% trailing stop buy order and the following initial stop loss prices:

• LANC: $45.11
• GIGM: $3.75
• VR: $23.39

Two "risky" buys

Today I would suggest to buy CSKI and DBA.


CSKI

It shows a technical buy signal and it has good fundamentals. But it is a Chinese stock, so I would recomment to pay particular attention to it, since Chinese stocks are usually very volatile.


DBA

It lost quite a lot and looks like having found a good support. Technical indicators show a probable big change in price.



As always I would suggest to set a 1% trailing stop buy orders at 10 o'clock, after the first 30 minuts of trading.

Please note: I consider these two trades riskier than usual so I recomment to use stop losses, beginning with:
CSKI: initial stop at $12.81
DBA: initial stop at $23.03

New buys

Today I would suggest to buy three stocks.

WHAT?
I would sugegst to buy the following stocks: BUCY, EROC and MIR.

WHY?
These three stocks showed a technical buy signal in the last couple of days. In addition to that, their fundamentals are good compared to industry average.

BUCY
Financials
- Average quick and current ratios
- Low debt
Value
- Low PE and Price/Cash Flow
Profitability
- Top Operating and EBIDTA margins
Effectiveness
- Top ROI, ROE and ROA
Growth
- Good EPS and Sales growth



EROC
Financials
- Good quick and current ratios
- Debt is higher than average (some risk here - never forget stop loss)
Value
- Low PE, Price/Sales and Price/Book
Profitability
- Top Operating Margin and good EBIDTA
Effectiveness
- Top ROI, ROE and ROA
Growth
- Top EPS and Sales growth



MIR
Financials
- Good quick and current ratios
- Very low debt
Value
- Low PE, Price/Sales, Price/Book and Price/Cash Flow
Profitability
- Top Operating and EBIDTA margins
Effectiveness
- Top ROI, ROE and ROA
Growth
- Top EPS and Sales growth


HOW?
I would suggest to place a 1% trailing stop buy order.

WHEN?
I would suggest to create the orders at 10 o'clock. In these way we will wait for the first 30 crazy minutes of the day.

THEN?
As soon as we buy I would suggets the following initial stop loss prices:

• BUCY: stop loss at $27.93
• EROC: stop loss at $3.11
• MIR: stop loss at $15.75

A new buy and some new stop loss

Today I would suggest to buy MAXY.

Actually we should have bought it last Friday (September 4th) but I was not in front of my computer that day.
We can buy it now, or better, tomorrow, since today is Labor Day.

MAXY show a very goos PE ratio, averagePrice/Sales and good Price/Book.
It has no debt and very goos quick and current ratio (cash in pocket).
Operating margin and EBITDA are in Industry's best 20%, as ROI/ROE are.

This stock should offer us a good margin of safety.

I would suggest to set a buy order as a trailing stop at 1% (as an alternative, just buy it on market open) and set an initial stop loss at $6.63.


Updated Stop Loss Orders

• APOL Stop at $61.14
• CMTL Stop at $32.61
• ENDP Stop at $20.92
• LHCG Stop at $23.32
• WDC Stop at $31.04
• MAXY Stop at $6.63