Good morning to all. The market is looking rather weak this morning moving into the open as a slew of poor economic data and expectations from the Fed have plagued futures. Currently, we have one open position that we entered yesterday in NVIDIA Corp. (NVDA) as a Play of the Week. We got involved at 9.48, and we are looking to exit at 9.86 and above. The stock closed yesterday at 9.64, but it will most likely take a hit this morning with the market being down. Additionally, yesterday, I posted a portfolio update that updates you on how The Oxen Report is doing and how all of our portfolios are standing. You can check it out here.
Well, let’s get into today’s plays…
Buy Pick of the Day: LDK Solar Co. Ltd. (LDK)
Analysis: The market is not looking too strong to start off the day. We got some bad news out of Nonfarm Productivity and Unit Labor Costs as they were both worse than expected. Nonfarm productivity’s decline means that the number of hours being worked by employees as well as the GDP is declining. Productivity dropped from up 3.6% last month to down 0.9% this month. This, along with the FOMC statement, are hurting the market. Therefore, our Buy Pick of the Day needs to be something we think can open lower and move down some with the market but has the ability to bounce back
after a decline.
Therefore, we want to look for a company that might get some strong movement into its earnings report intraday rather than overnight. One such company should be LDK Solar (LDK). The solar company is expecting to report a major turn to profits from a year ago loss (0.22 EPS vs. -2.03 EPS). The company has gotten a strong run up into earnings, moving up 25% over the past month. This run up has caused the stock to become overvalued and overbought. Yet, the buying interest in LDK is very strong.
On any decline, buyers move back into the stock. Therefore, it would make sense that this morning LDK would gain some significant buyer interest moving into earnings, and on top of that, the stock declined yesterday and is set to open lower today. The stock has an upper bollinger band at 7.55. Therefore, an entry at the mid 7.30s and below would give us 3% and more if it moved that high, and there…
