Saturday, September 5, 2015

Precious Metals Final Flush Beginning

While turmoil in global capital markets may ultimately benefit the precious metals sector, it certainly is not an immediate catalyst. As global markets have weakened in recent days so too have precious metals and precious metals companies. The gold miners are nearing recent lows ahead of conventional markets while the recoveries in Gold and Silver appear to be reversing. This could be the start of a final flush that marks the end of the bear market. (more)

Dow Dumps 600 Points From Last Friday's Panic-Buying Ramp, Drops 10% Year-To-Date

Remember last Friday? The Dow screamed 140 points higher in the last hour of the day to "prove" everything was awesome into the weekend. It wasn't! With The Dow down 300 points today, it is now 600 points below those panic-buying highs just a week ago...

It seems the idea of China being open and US closed on Sunday night/Monday is making more than a few nervous.

The Dow is now down 10% for the year and Nasdaq is back in the red...

Chart of the Day Sportsman's Warehouse (SPWH)

The Chart of the Day belongs to Sportsman's Warehouse (SPWH).  I found the outdoor sporting goods stock by using Barchart to sort theRussell 3000 Index stocks first for a technical buy signal of 80% or better then again for a positive Weighted Alpha.  Next I used the Flipchart feature to review the charts.  Since the Trend Spotter signaled another buy on 8/28 the stock gained 2.48%.

Sportsman's Warehouse Holdings, Inc. is an outdoor sporting goods retailer. Its stores offer camping products, fishing products, and hunting and shooting products. The Company's stores also provide clothing products, footwear products and optics, electronics, and accessories. It also carries a range of private label offerings under the Rustic Ridge, Yukon Gold and Sportsman's Warehouse brands. Sportsman's Warehouse Holdings, Inc. is headquartered in Midvale, Utah.

technical indicators:
  • 100% technical buy signals
  • 132.60+ Weighted Alpha
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 8 new highs and up 12.40% in the last month
  • Relative Strength Index 65.70%
  • Barchart computes a technical support level at 12.23
  • Recently traded at 13.21 with a 50 day moving average of 12.05
Fundamental factors:
  • Market Cap $554.82 million
  • P/E 23.93
  • Revenue expected to grow 10.60% this year and another 13.20% next year
  • Earnings estimated to increase 20.00% this year, an additional 26.70% next year and continue to increase at an annual rate of 21.92% for the next 5 years
  • Wall Street analysts issued 8 strong buy recommendations on the stock
The 20-100 Day MACD Oscillator has been a reliable technical trading strategy for this stock.

Cattle Prices Look Very Bearish

Live Cattle Futures--- Live cattle futures in the December contract settled last Friday in Chicago at 146.05 while currently trading at 142.70 as I’ve been recommending a short position from 146 and if you took that trade continue to place your stop loss above the 10 day high which currently stands at 146.72 as the trend remains bearish in my opinion.
Cattle prices are trading far below their 20 and 100 day moving average telling you that the short-term trend is to the downside as prices are near a 6 month low testing recent support and a double bottom around 142 and if that level is broken I think an all-out bear market is underway as cattle prices are still too high compared to the rest of the commodity markets.
The fundamentals in cattle are starting to turn bearish as Canada is entering a recession as they are a large importer of U.S beef which should slow down demand as these are still very high historical prices as the chart structure is very solid at the current time so take advantage of any price rally while maintaining the proper risk parameter of 2% of your account balance as I do think prices will break 140 next week. TREND: LOWER –CHART STRUCTURE: SOLID

5 Cash Flow Positive Small Caps Selling Under 1x Revenue: LQDT, CVL, ESND, HY, CFW

Cash flow is so important to any business that if a company doesn’t have enough money to sustain its operations it must raise funds through equity or debt in order to survive. Publicly-traded companies selling below 1.0x revenues usually signify either low profitability margins (therefore flowing little income to the bottom line), or a sign of poor future growth (expecting to not generate much revenue in the future). This could include the companies on our list today.
Liquidity Services Inc. (NASDAQ: LQDT) - $7.50
IT Services & Consulting
Liquidity Services, Inc., is an auction marketplace for surplus and salvage assets. The Company enables buyers and sellers to transact in an automated online auction environment offering over 500 product categories. Its marketplaces provide professional buyers access to a global, organized supply of surplus and salvage assets presented with digital images and other relevant product information.

  • Market Cap: $291,710,762
  • EV/Revenue: 0.3x
  • Free Cash Flow (2014): $4,675,450
  • Total Debt (LFQ): $0