3 Profit-Taking Candidates

Written by GSCR Staff   
Thursday, 23 May 2013 07:13

In Monday’s Goldman Guide, we discussed selling into strength and knowing when to take profits.  Right on cue, the Russell 2000 was down around 2% yesterday and the advance-decline line ‘rounded out’ down after several weeks on the upward slope. 

Is it time to panic?  Not even close.  It is still a bull market even in the small cap space, but now may be time to sell some profits. Here are 3 stocks from our Market Monitor that are up by a large amount where taking some profits might be a good idea right now.

Wisdom Tree Investments, Inc. (NASDAQ- WETF - $13.30):

WETF is up over 42% since we recommended it.  To be very frank, this one was probably a 7 or 8 on a scale of 1 to 10 as far as confidence that it would have a pop.  Investors are still putting more money into the market, which should help the stock, but a nice skim off the top would probably be prudent as we head into the summer months.

Innovative Solutions &Support, Inc. (NASDAQ – ISSC – $7.75):

ISSC was our Department of Defense play which is up over 42% from $5.44 since late March.  The short-term technical analysis yields a very bullish signal in MACD.  The stock may still be worth holding as a defense play, but again, it is a profit-taking candidate.

TearLab Corporation (NASDAQ – TEAR - $9.55):

This is an innovative company and a great stock, up almost 60% since our highlight in March.  TearLab develops products related to the cure of dry eye disease with little competition.  We definitely like this as a great long play, but the stock had a big jump since financials were released last week. You won’t be crying if you made money on the trade, even if it continues to rise.

The market is in for a rough patch today so take the money and put it to something fun or useful to start the summer.  One idea is the wildly successful Goldman Small Cap Research 30-30 Report, currently offered at a reduced price until May 31st.  Sign up for a whole year for only $49 with coupon.  See website below for details.

http://www.goldmanresearch.com/the-30-30-report.html

Have a great Memorial Day weekend!

 

 

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.

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