Good morning to all. Today, we are looking to get involved with two new positions. Yesterday, we entered a weekly play with Lennar Corp. (LEN) for our Play of the Week at an averaged position of 14.68. The stock closed slightly down for us, but the position will be dependent today on existing home sales news. Our other open position in Jabil Circuit Inc. (JBL) we closed at 14.10 for a gain of 4% after opening it at 13.56. We also got stopped out on a Short Sale of Tesoro (TSO) and lost just over 3% after holding this one from Thursday through Monday. It was a 1/2 day, and we are looking to make 2/2 today.

Let’s get into today’s picks…the picture on the left is a hint of why I like today’s buy…

 

Buy Pick of the Day: Jabil Circuit Inc. (JBL)

Analysis: Jabil Circuit was my Midterm Pick back on Wednesday that we were able to exit yesterday for 4%. The company has great potential for some very solid earnings coming out after today’s session, and after the downward movement the stock received yesterday to fall almost to the 12.56 range where I bought, it is a place to reenter moving into the close for today. Depending on the housing data that comes out at 10 AM and the movement of the stock, this could be just a single day hold or a hold through overnight. 

I originally liked JBL at the 13.60 level because I thought it was undervalued for the type of earnings I was expecting from the stock and its industry’s success. JBL produces circuit boards and electronic devices for a number of companies across many fields. The company is looking to report earnings tonight at 0.34 EPS, which would be a 750% improvement from one year ago, and if hit, it will be the company’s best earnings in over two years. The company got some bullish movement to end the week and through Monday, and I think it should happen one more time today.

JBL was originally overvalued when I liked it, and I had to wait for it to come down. Now, it has come down again, and we are setting a nice entry around yesterday’s close. The stock should be able to easily move to the 14.30s at a topping point, which is over 3% from the top of my entry range. This company will get growth because investors…
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