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In
This Edition... |
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Dialing
up Spicy Pickle's Number - Conference Call Announcement
-
Time to Send Clearly
Canadian Packing?
-
Sectors & Stuff
- What's Hot, & What's Not.
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Dialing
Spicy Pickle's Number |
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If you wanted
to ask a question about Spicy Pickle and get an answer straight from the
top, here's your chance.
 Spicy
Pickle (OTCBB:
SPKL) will
be hosting an investor conference call on Wednesday (April 16th)...their
first one ever. The call will start at 4:15 pm EST/1:15 pm PT. To participate,
call 1-866-696-5897 if you're in the U.S. or Canada. Overseas shareholders
should dial 416-641-6128.
The agenda includes
a review of 2007, and an outlook for 2008. We strongly suggest you
listen in if you're a current or prospective owner. Some participants will
be able to ask questions - which is the real upside to these calls.
By the way,
Spicy Pickle shares have perked up the last couple of days. After closing
the $0.71/$0.75 gap from September 24th, the buyers appear to be interested
again (not a total surprise - something we discussed on March
31st). Since then, a minor resistance level has been topped. Could
this be an omen of something to come out in the call?
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Time
to Send Clearly Canadian Packing? |
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It's been two
months to the day since we pointed out bulletin board stock Clearly
Canadian (OTCBB:
CCBEF) was working on a breakout. The move past 80 cents was the
clincher, and since then we've seen this stock rally as high as
$1.30. The current price of $1.20 is still 50% above the level we saw in
mid-February, so odds are the bullish run doled out some rewards to anyone
who jumped in.
 As
we all know too well though, entry is only half the battle; the
hard part is the exit.
If you're having
a tough time making the call on CCBEF right now, this may help...we
suggest you go ahead and lock in the gains you've got and move on to the
next idea.
Some traders
may think it's a tad early for an exit. We certainly understand the sentiment.
However, sometimes (more than we care to believe) it's better to
be early than late. In Clearly Canadian's case, the trend
looks intact on the surface, but a closer look tells is something's changing.
The two 'factors
in flux' we saw right off the bat were volume, and momentum.
We actually
saw the MACD lines turn bearish a few days ago, telling us the bullish
momentum had dried up. The same goes for volume - there are a growing number
of sellers, and a shrinking number of buyers. That's why the accumulation-distribution
line is sinking now. We're going to interpret those clues at face value.
And what
if CCBEF rebounds now, or after a brief dip? Not only do we think it's
possible - we think it's likely. However, we're absolutely sure
of 'what is' ....we're not sure of 'what may be'. That's just a trite way
of saying we have a bird in the hand. If and when Clearly Canadian perks
up again, there's no reason you can't re-buy it.
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Out
With The Old, In With The New |
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Our last really
good look at market sectors was in December. Obviously a lot has
changed since then, so it's time to update our sector bias.
With our last
look, we favored consumer staples, utilities and telecom. We didn't particularly
like industrial stocks, and were a little leery of bloated energy stocks.
Finally, we mentioned financials may be a long shot worth waiting on, but
didn't look particularly attractive just yet.
Though the recent
shake-up has been mostly a 'shake-down', a handful of groups do look promising.
Of course, a handful of them also look like they're about to keel over.
Here are the highlights and low lights...
 Bullish
Prospects
Transportation
- The lion's share of the strength has been provided by railroads,
but most of the group is doing well.
Consumer
Staples - Two steps forward and one step back is fine as long as it
can be done reliably. These stocks will be particularly handy of we slip
into a recession or bear market. However, they're attractive to us right
now even if thing don't' take a turn for the worst.
Utilities
- Every couple of years these names seem to go through a correction....much
like the one we just saw. The recent strength has been impressive.
Healthcare
- Strictly and undervalued proposition. Healthcare stocks have a knack
for rebounding out of the blue, and the deep selloff we've seen in this
group has left them ripe for the pickin'.
Bearish
Prospects
Materials
- Yep, inflation has indeed driven materials higher. However, with
the Fed left with very little ammo in the ay of interest rates, there may
not be much room left for more price increases in the underlying materials.
Though they may 'feel' bullish, note that these stocks are pretty much
where they were on July of last year.
Telecom -
Use
extreme caution here. Our stance is primarily based on current momentum,
which has been decidedly bearish. When telecom turns though, it can turn
on a dime and accelerate quickly (either direction) in the blink of an
eye.
Industries
of Interest
Financials
(still) - As we said in December, we see values brewing here ...though
the percolating isn't done yet. The current momentum is bearish, but when
big money decides enough is enough, we won' be a bit surprised to see these
stocks come roaring back.
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Updated: 8:15 pm PDT (03:15 GMT), November 2, 2010
