Here are two stocks to consider this week, even with the downtrend intact. However, with the downtrend intact, ensure you monitor your trades closely as the situation can always change in the blink of an eye. Do not ignore your stop losses. Also, consider keeping positions a bit smaller than normal due to the downtrend.
Endologix (ELGX) received FDA approval on 6-15 for its AFXT Endovascular AAA System for treating abdominal aortic aneurysms. Basically, this is a stent that redirects blow flow away from a recent aneurysm, reducing pressure on it. ELGX says their stent offers a mechanism that makes it easier for surgeons to open it inside the artery. Also of note, yahoo finance has ELGX with total cash of about $35 million and only $63k worth of debt.
The stock is near 52-week highs on increasing volume and so far ignoring the overall market damage. With the increased bullish volume, we should look for a breakout to new 52-week highs on strong volume. The trade is to buy on a light volume pullback towards $8 or buy on a strong volume move above $8.57. I’d keep a tight stop just under $7.80 or a looser stop just under $7.25.
ELGX Chart
GT Solar (SOLR) raised its fiscal first-quarter earnings and revenue outlook last week. The stock has seen additional bullish volume since then. SOLR is near 52-week highs and also ignoring the overall market damage as of late. Yahoo finance has SOLR at about a 3 to 1 cash to debt ratio, a PEG ratio of only .54 and forward P/E of only 7.26. SOLR appears to be currently undervalued.
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The trade is to buy on a light volume pullback towards $12.75 or on a strong volume move above $13.53 with a tight stop loss under $12.35 or a looser stop loss just under $11.88.
SOLR Chart
As always, do your own homework to see if you agree. Good luck out there.
Mike
At the time of publication, Kudrna had no positions in the mentioned stocks but may initiate a position within 72 hours.
