The Top 5 – The Market Monitor & College Football Meet

Written by GSCR Staff   
Friday, 02 August 2013 10:35

It is’ Friday so we thought we would have some fun with today’s blog.  We are rabid college football fans, and many preseason polls are starting to come out.  We thought we would chime in and in addition, link our picks to corresponding old Market Monitor picks as solid plays for the rest of the summer until the season starts, coincidentally, one day after the last trading day of the unofficial summer calendar ending on August 30th this year.  We ranked these teams not necessarily as the best 5, but the 5 most likely to play in the national championship game.  We also took a strong look at the technical analysis for the stocks as our time horizon is one month.

Here you go:

  1. Alabama Crimson Tide – Lannett Company, Inc. (NASDAQ – LCI)

    Until you are dethroned, you are number one.  The Tide has won 3 of the last 4 national titles and seems to be poised for a third in a row.  Nick Saban has a well-oiled machine in Tuscaloosa.  LCI is up nearly 150% since our highlight, and the charts remain very bullish.  The company has also become profitable.  Additionally, just like Alabama is in the best conference, the SEC, LCI is in the best small cap sector, biotech. 

  2. Oregon Ducks – Rambus, Inc. (NASDAQ – RMBS)

    We had to link the West Coast with a hot semiconductor LED firm to the flashy Oregon Ducks.  Although the Ducks have a new coach, they return plenty of talent.  Like Alabama, they can probably afford to lose a conference game and still remain in the national title hunt due to the relative strength of the Pac-12.  RMBS beat 2Q expectations, and was a BUY on Cramer’s Lightening Round recently.

  3. Ohio State Buckeyes – Franklin Covey Company (NYSE – FC)

    The Buckeyes finally started to enter the 20th century in the 1990’s escaping the 3 yards and a cloud of dust offensive strategy.  Urban Meyer is further revamping the Big Ten stalwart from an offensive and defensive perspective, particularly related to speed.  Franklin Covey has also revamped its product line with a focus on the digital age.  The stock is up over 11%, and remains bullish in the short, intermediate, and long term.  Just as the Buckeyes cannot afford any loses if they want to remain relevant in the national title hunt, FC must meet or exceed earnings going forward to keep the momentum.

  4. South Carolina Gamecocks – Napco Security Technologies, Inc (NASDAQ – NSSC)

    Why did we link a security company with Steve Spurrier and SC?  Steve Spurrier, called Steve Superior by some, built a reputation as an offensive guru.  Winning in the SEC requires great defense, and ironically the Gamecocks have one of the best, highlighted by Heisman trophy candidate, Jadeveon Clowney, a freak athlete for a defensive lineman.  South Carolina should win the SEC East, putting them in the SEC title game, which has become a de-facto play-in game for the national title game over the last 7 years.  NSSC continues to innovate in the growing home and commercial defense industry with new products and the charts are very bullish.

  5. Louisville Cardinals – TearLab Corporation (NASDAQ – TEAR)

    The Cardinals’ stock rose significantly with a Sugar Bowl victory over Florida last January.  Couple plenty of returning starters, including QB Teddy Bridgewater, and a down Big East, and an undefeated Cardinal team could play in the national title game.  Like the Buckeyes, they have no room for error with a loss.  Like Louisville, who plays in a relatively weak conference with little competition, TEAR is a unique medical firm with little competition.  The stock is up nearly 139% and nothing indicates any slowdown in this momentum as far as the technical analysis is concerned.  TEAR took a minor dip when a public offering of $35 million was announced a few days ago, but recovered quickly.

Have a great 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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