Possible Momentum stocks in the market

 
 
 

Most companies published their finanancial results for their last quarter, most of are above average now. Especialy main two blue chip companies in sri lanka, JKH and Hayleys already given their amazing earnings in last week. Both companies are now trading below 10x PER and we can expect further price appreciations in comming months. At decent valuation I would like to see JkH above 230 and Hayleys above 500.

In addition to Food sector BFL, TAFL and GRAIN have proved their expected massive growth for next financial year. I strongly belive all three counters will give at least 50% return to share holders.

Also we can see financial sector massive earnings from COCR, VFIN, LB Finance. All are now ready to upgrade their next stage. Expect amazing from cocr.

Tile sector LWL, Lanka tiles posted amazing earnings and now trading at low PER.

Aluminium related Aluf, Alum & PARQ under massive turning period and expect mega bull rallies from PARQ and ALUF in very soon.

Banking sector SAMP published growth earnings and currently it is under investors watch eye. Expect further good results from Comb and hnb.

Manufacturing sector DIPD is under growth period and expect to break above 200 barrier.

So, I like to see investors attraction for fundamentally worth shares in comming months.

I remember One & Half year back, I bought 800 COMB shares @ Rs.104/- & still in my PF. Now I have 62% return from that.

CDB will have good momentum after today report, dipped products will also do well in there nxt report. Expect run from LFIN N AAIC after sub divison dates ar announced. Sampath will slowly reach 300 levels when nxt report is due.
have a close eye on renuka group, those shares ar really undervalued n report is due soon.

CDB
CFIN
LFIN
COMB
SAMP

Piras I don't think CFIN N COMB will appreciate like other three in your list.

VALUEPICK wrote:

In bull markets all types of stocks will go up such as value stocks, growth stocks and momentum stocks.

 

Now some great value stocks have started their bull journey due to above average results and strong positive outlook. I believe similarly some strong momentum stocks also could have some strong rally in the remaining stages of this bull market. Some of the possible momentum stocks are:

 

PMB

MBSL

SHL

MPRH

BOPL

ELPL

 

Once they started to produce good earnings in a strong turnaround in their industry their stock prices can go up further. Did you identify momentum stocks which can have strong rally due to turn around situation, industry improvement and growth in the future?

VP, I agree with you to a very great extent. Normal Stocks cannot give you super profits in a bull market. It has be picked with a open and sharp mind. You got a sharp mind!!!

My portfolio already got SHL, PMB and SIRA. So I have got 2 out of the top list. With my target to make 70% in 7 months. I have already got 10% profit in may portfolio. I increased my shareholdings in PMB.

Sstar wrote:

VALUEPICK wrote:

In bull markets all types of stocks will go up such as value stocks, growth stocks and momentum stocks.

 

Now some great value stocks have started their bull journey due to above average results and strong positive outlook. I believe similarly some strong momentum stocks also could have some strong rally in the remaining stages of this bull market. Some of the possible momentum stocks are:

 

PMB

MBSL

SHL

MPRH

BOPL

ELPL

 

Once they started to produce good earnings in a strong turnaround in their industry their stock prices can go up further. Did you identify momentum stocks which can have strong rally due to turn around situation, industry improvement and growth in the future?

VP, I agree with you to a very great extent. Normal Stocks cannot give you super profits in a bull market. It has be picked with a open and sharp mind. You got a sharp mind!!!

Happy to see you after long time. I think you have a sharp mind in selecting some stocks. Eg: REXP, AEL(at that time) before others, TPL etc. You should have kept both TPL and REXP without selling. After seeing some results I have found few stocks which  can have run faster than REXP due to positive out look and above average growth. I am studying on them further now before take more decisions.

Good luck!

jayathu wrote:Piras I don't think CFIN N COMB will appreciate like other three in your list.

Sampath Bank good

Thank you everybody for your valuable comments.

 
MPRH has great value if we compare with WATA, BOPL and SUN. It has more value than KOTA as well. However number one is TPL.

EPS wrote:Most companies published their finanancial results for their last quarter, most of are above average now. Especialy main two blue chip companies in sri lanka, JKH and Hayleys already given their amazing earnings in last week. Both companies are now trading below 10x PER and we can expect further price appreciations in comming months. At decent valuation I would like to see JkH above 230 and Hayleys above 500.

In addition to Food sector BFL, TAFL and GRAIN have proved their expected massive growth for next financial year. I strongly belive all three counters will give at least 50% return to share holders.

Also we can see financial sector massive earnings from COCR, VFIN, LB Finance. All are now ready to upgrade their next stage. Expect amazing from cocr.

Tile sector LWL, Lanka tiles posted amazing earnings and now trading at low PER.

Aluminium related Aluf, Alum & PARQ under massive turning period and expect mega bull rallies from PARQ and ALUF in very soon.

Banking sector SAMP published growth earnings and currently it is under investors watch eye. Expect further good results from Comb and hnb.

Manufacturing sector DIPD is under growth period and expect to break above 200 barrier.

So, I like to see investors attraction for fundamentally worth shares in comming months.

It is wise to have estimation on stocks that we are going to hold.  Stock prices are not that important. The most important thing is future earnings. We can clearly see some companies have ability to identify opportunities and have development targets in their mind. So they will reward investors handsomely in the future. Currently we are seeing prices drop in few extended stocks in the market. Market will become more attractive now. This market should re rate now. Bullish stocks will jump to the next level and will build bases gradually and will go up further until end of the current major bull market. It is better to stay with simple business that we know very well.
 
Good luck!

EPS wrote:I remember One & Half year back, I bought 800 COMB shares @ Rs.104/- & still in my PF. Now I have 62% return from that.

What is your opinion about reducing part of our portfolio in some stocks and then add more to our promising stocks? I am planning to do this. Is it wise to do?

VP,
I think, In early stages, if you identified the valued future winning stocks, then it reach your targets, if you think company is now under peak & stable stage then definitely you should sell. (Like Otara did for ODEL at peak). 

But, if you see the continuous growth + above average returns (high dividend payout), if you having further holding capacity, no issue to hold for long term or as life time, stocks like NEST, CTC.  

Also, I think if you see any future promising stock with above average return, then it’s wise to sell some non-moving part and upgrade your PF with promising stocks. 

Most of times my strategy is, if I see some promising future stocks, then I am going with that by reducing all others. Most of times this strategy gave me an above average return. 

I remember in 2011, I did ever biggest mistake by taking bad decision. I had TAFL massive qty at Av.56/- and BFL another big qty at Av.123/. at the peak both went up 240/- & 520/- respectively. But unfortunately both sold in half a range with in hand money loss of 24.3 Mn.

EPS wrote:VP,
I think, In early stages, if you identified the valued future winning stocks, then it reach your targets, if you think company is now under peak & stable stage then definitely you should sell. (Like Otara did for ODEL at peak). 

But, if you see the continuous growth + above average returns (high dividend payout), if you having further holding capacity, no issue to hold for long term or as life time, stocks like NEST, CTC.  

Also, I think if you see any future promising stock with above average return, then it’s wise to sell some non-moving part and upgrade your PF with promising stocks. 

Most of times my strategy is, if I see some promising future stocks, then I am going with that by reducing all others. Most of times this strategy gave me an above average return. 

I remember in 2011, I did ever biggest mistake by taking bad decision. I had TAFL massive qty at Av.56/- and BFL another big qty at Av.123/. at the peak both went up 240/- & 520/- respectively. But unfortunately both sold in half a range with in hand money loss of 24.3 Mn.

Thank you for your ideas. I got the idea. It is not only good time to buy some valuable stocks but also to rotate or reduce some of our stocks to buy promising stocks. Bull market create opportunity to recover losses we made in the past. Good luck!

It is also time to identify discrepancies in the market and find out great value stocks in the market.
 
Eg:
 
SUN
 
Unaudited Year ended 31/03/15
 
EPS= 3.62
Net asset per share= 39.61
 
Trading price: Rs.52
 
MPRH
 
For the nine months ended 31/12/14
 
EPS= 5.11
 
Net Asset per share=47.22
 
Trading price Rs.30
 
We can find out plenty of undervalued stocks with growth potential in the market now. It is time to identify those value stocks before crowd recognize them.

http://www.streetdirectory.com/travel_guide/144153/trading/how_to_spot_momentum_stocks.html

How to Spot Momentum Stocks

 
 

SHL
VONE
TJL
BFL
RCL
ALUM
CDB

UML
UBC
BFL

MarketWch wrote:UML
UBC
BFL

Good too

 

http://investorplace.com/2015/08/momentum-stocks-fit-nflx-gmcr-tsla/#.Vc2Wt_mqqko


Has The Market Turned on Momentum Stocks?

Hot stocks like Fitbit, Keurig Green Mountain and Tesla are getting killed

 

Tesla Motors (TSLA), Fitbit (FIT) and Keurig Green Mountain(GMCR) were slaughtered Thursday following disappointing earnings. Each stock was battered to a degree that makes you have to wonder if the market is calling open season on some of the better-known momentum stocks.
 
Technically, GMCR isn’t a momentum stock these days, unless you’re talking about momentum to the downside. Not too long ago, however, GMCR was one of the hottest stocks going — more than tripling over two years.


Now, after a 30% bloodletting post-earnings, GMCR is off 60% for the year-to-date.
As for TSLA stock, shares were up more than 25% for the year-to-date less than a month ago. And now a double-digit percent plunge is threatening to wipe out everything TSLA stock gained this year.


Then there’s Fitbit. Anytime a stock rises 140% in two months following an initial public offering, you have to wonder if this kind of steep selloff on earnings could be the start of something ugly.
In every one of these cases, the selloff was initiated by some kind of guidance scare. Whether it was estimated deliveries from TSLA, profit and sales targets from GMCR or margin forecasts at FIT, the market punished these names relentlessly.


True, the market usually overreacts in the short-term, but this kind of action still raises questions about the market’s appetite for risk. After all, it’s not like investors are in love with equities this year as it is.

Momentum Stocks: A Canary in the Coal Mine?

 
Stocks in general are stuck heading into the Federal Reserve’s first rate hike in almost a decade. TheS&P 500 has hardly budged this year, and the Dow Jones Industrial Average is down more than 2%.
 
Higher-risk, higher-reward stocks are even less fashionable. Small-cap stocks are underperforming large-cap stock. When names like FIT and TSLA start to crack — as GMCR did earlier — it’s only natural to wonder if this year’s static stock market is set to turn south.
If there’s good news for momentum stocks, these three names make for a very small sample size. Besides, Netflix (NFLX) — the biggest momentum stock of all — remains as hot as ever. It’s up 150% so far this year.


And it’s not like Thursday’s action was a huge reversal for shareholders in any of these stocks. GMCR has been suffering from slowing sales for a long time now, and it’s attempt to find success with a cold-beverage system has always sounded like a bit of a stretch.
FIT, meanwhile, retained most of its post-IPO gains, and sold off as much on accounting confusion as it did tightening margins and some decelerating in the growth rate.
TSLA is just being TSLA.
 
That said, this market has less even patience than usual for imperfection on the part of hot stocks. Anyone betting on momentum stocks in an otherwise boring year for equities would so well to reassess those holdings.


As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.