Our Play of the Week worked out brilliantly for us. We got involved on Monday in Winnebago Industries Inc. (WGO) liking a number of financial fundamentals and chances for an earnings beat. The company looked to be a strong play over the week, but it played pretty flat all week as we continued to hold. My entry was at 11.25. The company reported earnings of 0.21 per share while estimates were consensus at 0.03. It was a gigantic 600% earnings beat. I am going to sell half at the open and wait and see what happens for another half to get a hedged final price. Since the market is looking upwards, I think we can get a couple or few more percentages, but I am looking at selling at the open around 12.70 – 12.80 currently (that could go up or down). That would be an increase of about 12%.
Yesterday, we got involved in two positions for day trades. The first was Direxion Daily Real Estate ETF (DRV). This ETF worked out for a nice gain for us as we got in at 6.10 and exited at 6.22 for a solid 2%. Our Short Sale of the Day was in agricultural company BHP Hillition Ltd. (BHP). We decided to hold BHP after we got very little movement in it yesterday in either direction after the company saw a severe downgrade from JP Morgan to “Underperform.” I opened my position at 67.25, and I am a bit underwater currently about 1%. This one is definitely getting very toppy though.
The chart on the left is pretty funny as it shows that the only thing that we want to cut is foreign aid, which is one of the smallest parts of the American deficit.
Midterm Buy Pick: Jabil Circuit Inc. (JBL)
Analysis: Jabil is going to work somewhat like my Play of the Weeks normally work, but it will be a Play of the Week from the end of one week towards the beginning/middle of the next. When I do my Plays of the Week, anything reportingin the first two and a half days is out, so we lose a lot of companies. These positions have been pretty successful, so I am wanting to continue the tradition.
Jabil Circuits makes circuit boards and other electronic manufacturing devices in many fields, such as aerospace, automotive, defense, medical, and more. The company is based in St. Petersburg, Floria and…
