This is a very interesting market as it doesn’t want to correct. Our strategy at this point would be to sell stocks that have doubled or tripled since March of this year, and haven’t corrected, and buy stocks that have already corrected. The ones we like, which are just beginning to move, are the Solars. We bought ReneSola (SOL) 5.55 and more Yingli Green Energy (YGE) 11.27 last week and we really like First Solar (FSLR) 121.47, a quality stock with real earnings. We have immediate sell ratings on the following stocks (they have moved way up and have large insider selling): Caterpillar (CAT) 46.11; Intuit (INTU) 28.21; J Crew (JCG) 33.65; Hewlett Packard (HPQ) 45.10; IBM (IBM) 117.46 and JP Morgan (JPM) 42.34.
Our favorite penny stock **Cel-Sci (CVM) .67 is moving well and we expect it to make a significant upward move shortly. A lot of sources are beginning to recognize their potential, and talk about it, which is a great sign. The stock picks below are, for the most part, at historically low prices with good charts… and significant insider buying in GLUU. Our normal buying strategy is to buy 40% of your allocation for a particular stock now, and buy 30% more on each 20% decline from your original buy price…to ensure good entry prices.
Our stock picks (As of Friday Sept 4, 2009, closing prices): First Solar (FSLR) 121.47; Canadian Solar (CSIQ) 14.90;Yinglg Green Energy (YGE) 11.83; Renesola (SOL) 5.55; Xinyyuean Real Estate (XIN) 5.27; Tiens Biotech (TBV) 4.05; Kodiak Oil & Gas (KOG) 1.74; GetFugu (GFGU) 1.34; Glu Mobile (GLUU) 1.13; Dune Energy (DNE) .15. This market letter was published on Tuesday, September 8, 2009, at 8:00 AM.
* Cotton’s “Stock of the Week”
** We hold a position in the stock or option
GO TO STOCKCHARTS.COM TO VIEW THE ABOVE STOCK PICKS
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