Take Two Off The Top
Written by GSCR Staff   
Wednesday, 17 July 2013 09:17

After the huge run-up over the last few days on news Uncle Ben was planning on keeping his cheap money policy, it’s time for traders to take a look at possible profit taking or at least skimming off the top.  We have a feeling we are due for another ‘sell’ day today.

Coincidentally, both of these stocks are apropos for a hot summer day, as the heat wave has returned.  Whether you want to enjoy a smoothie or a beer, we still think the glass is half full for these stocks, but probably time just to take off the foam.

Jamba Juice (NASDAQ – JMBA - $16.22)

The stock is up nearly 18% since we profiled it a few months ago, but we missed the peak of $17.41 which occurred back in June.  We still think this is one is a hold.  Almost everything in our Market Monitor is on the bullish side as far as the charts are concerned in the short term, but JMBA has mixed signals.  The company continues to introduce new products like The At Home Smoothie Line in June but is still in the red in quarterly EPS.  Take the 18% profit off the top.

Craft Brew Alliance (NASDAQ – BREW - $9.71)

Just like most of the stocks in our Market Monitor picks, the technical analysis is still favorable on the bullish side for BREW.  The stock has hit our 30% up target as we come to the middle of the summer.  Seasonal spikes in sales may already be factored in the price here.  Additionally, the forward P/E for BREW is over 30, about 10 points above the industry norm.  Take the 30% and go have a brew…or two.

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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