Tuesday, December 30, 2014

Lululemon Athletica inc. (NASDAQ: LULU)

lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. It operates in three segments: Corporate-Owned Stores, Direct To Consumer, and Other. The company’s line of apparel include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise bags, socks, underwear, yoga mats, and water bottles. The company sells its products through a chain of corporate-owned and operated retail stores; direct to consumer through e-commerce Websites; and a network of wholesale channel, such as premium yoga studios, health clubs, and fitness centers.
Take a look at the 2-year chart of Lululemon (Nasdaq: LULU) below with my added notations:
2-year chart of Lululemon (Nasdaq: LULU)
A rounding bottom is a reversal pattern that is as simple as it sounds: After an extended sell-off, a stock ‘rolls upward’ from the left to right thus forming a potential bottom that, once formed, looks somewhat like a broad ‘U’.
LULU appears to have formed a rounding bottom price pattern (blue) from April until last week. As with any price pattern, a confirmation of the pattern is needed. LULU would confirm its pattern by breaking the $55 resistance (red) that has been created by the rounding bottom pattern.

The Tale of the Tape: LULU seems to have formed a rounding bottom. A long trade could be made on a break above $55 with a stop loss set below that level.
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Explosive Stocks Under $10

This screen is a bit of a departure from my normal stock screens.
Usually I require my screens to have a minimum price of $10 per share.
But I do at times scan for stocks under $10. And that's one of the screens I'm running for myself right now.
Penny Stocks
One dollar is a common threshold when screening for stocks. A lot of investors actively avoid penny stocks due to the speculative nature, the often wide bid/ask spreads, and the excessive volatility that is all too common in stocks under $1.00.
But some, of course, work out spectacularly well. And that's probably what keeps people interested in them. (more)

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Does Biotech Bearishness Lie Ahead?

The biotech sector experienced a big shock on Monday, December 22, just one trading day after new record intraday and closing highs had been reached by the four most-heavily-traded biotech ETFs: the iShares Nasdaq Biotechnology Index ETF (IBB), the SPDR S&P Biotech Index ETF (XBI), the Market Vectors Biotech ETF (BBH) and the First Trust NYSEARCA Biotechnology Index ETF (FBT).

GILDThe epicenter of Monday’s biotech-quake was Gilead Sciences (GILD). On October 10, the FDA approved the Gilead’s newest hepatitis C drug, Harvoni, a once-per-day tablet, which has been found to cure 90 percent of Hepatitis C patients within eight weeks. Harvoni does not require the use of ribavirin and interferon. Gilead’s predecessor hepatitis C drug, Sovaldi, would be used for 12 weeks at a cost of $84,000 per patient. Because Harvoni is used for only eight weeks, the cost per patient is $63,000. (more)

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Podcast: NatGas Oversupply Even Bigger Than Oil Glut

Sumit Roy & Drew Voros discuss why investors should stay away from natural gas for now. (length: 6:34)
HAI's podcast is posted every Monday and looks back at the previous week's moves in commodities. To share your thoughts on today's episode, or request topics for upcoming episodes, please feel free to email us at contact@hardassetsinvestor.com.


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WTI Hits $52 Handle As US Rig Count Tumbles To 8-Month Lows

zerohedge.com / by Tyler Durden on 12/29/2014 13:20
Just as T. Boone Pickens warned “watch the rig counts” last week, so the Baker Hughes rig count just collapsed for the 3rd week in a row to 8-month lows. This is the fastest 3-week drop since mid-2009. Crude prices were already weak but the news has flushed WTI to a $52 handle (not seen in the front-month contract since May 2009)
Rig count is tumbling…

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