I've loved the stocks I'm calling the sand box this year. SLCA, EMES, and of course HCLP. Each of these stocks hit the 20MA and each them rallied. I already own HCLP from under 38. So I bought EMES today, which has lead the group for most of the year before being slowed down by a secondary.
In any event bounced at the 20ma I picked up at 105.18 it closed at 107.49 so I've got a decent 2% gain to work with. My stop is at the day low. When this stock moves it moves!
RJET: This looks like an inverse H&S shoulder. I liked the consolidation which has held up despite hard selling in the broader markets. Today it put up a relatively big move for it. On news of increased Q2 guidance. RJET increases its earnings per share by 16% for the quarter and is increasing guidance on its operating margins.
I like its prospects for follow through. In at 11.09 stop at 10.39. It has a 2 year high of about 14. On forward earnings it has a PE of 8 which is much cheaper than many of its peers. This may be enough to get some traction.
That being said I'm still curious as to its operating margin which is over 16% which is high compared to the industry to its profit margin which is 3% which is at the lower end of the companies in the group. I suspect that this is due to debt service. The company has stated that it is replacing older planes with bigger one, which would explain the debt.
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