Market Monitor

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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In Monday’s The Goldman Guide we talked about ugly duckling stocks.  The featured stock today has been a beauty queen over the last year.  ACADIA Pharmaceuticals (NASDAQ – ACAD - $20.28) is up nearly 1200% over the last year, and jumped almost 9% during yesterday’s run.

In Monday’s edition of the The Goldman Guide we mentioned the interesting axiom that in general, a rise in oil means a rise in the stock market and vice versa, as it’s all about the signal of an improved economy and an increase in demand.

How do we play oil in the small cap space?  There are a bevy of small oil and gas discovery companies that are similar to the bio-tech companies in the space – they are in the development stage and are not profitable yet.  Finding a stock and company that is not pure speculation is like finding oil in your backyard!

In a recent edition of The Goldman Guide we mentioned that trading on news will remain one way to ‘seek alpha’ in the market this summer.  Another earnings season is upon us, driving upward momentum in stocks that beat Street estimates, such as today's profiled stock, which should set a new high today.

In the past two editions of the Goldman Guide we have mentioned one of our May 30-30 picks, Pacific Sunwear of California (NASDAQ – PSUN), basically telling you to keep the buy on.  The stock is up nearly 33% since we included it in our premium research monthly periodical.  We think the sector still can be the right place to put some money provided it is in the right spot.

Along those lines, we have a new stock we believe might make a run in the short-term.  dELiA*s, Inc. (NASDAQ – DLIA - $1.25) has not only a unique spelling, but a specific target demographic, teenage girls.  OMG!  The company develops, markets, and sells apparel, dresses, swimwear, footwear, outerwear, and accessories through direct mail catalogs, the internet, and 104 retail stores in 33 states.

This is the Land of Free and Home of the Brave.  We had a nice pop yesterday, even as many, like us were warning that the market could be tricky over the next few months.  In the Goldman Guide we suggested that you take the day off.  This might be a phenomenal idea today, as there might be some profit taking.

I had to cool off for a few days but knew I would write about President Obama’s global warming speech from earlier this week.  He had his prop, a white handkerchief to dab his supposed sweaty brow, and ‘statistics’ to back him up.  The takeaway from the speech is that the President stated that he will put his full executive weight behind the EPA to implement his programs aimed at improving the environment. 

Whether or not you believe this agenda is real and will be implemented or just hot air to rally the president’s base amid a variety of scandals is really not that important.  It is probably a good idea to add clean or renewable energy to your portfolio at least in a minor way.  The best way to do this from our perspective are ETF’s, that way you can diversify across this niche sector and avoid the Solyndra’s of the world.

We hope The Goldman Guide earlier this week grabbed your attention.  While conjuring up images of Meg Ryan faking it in the NY deli hopefully got some laughs, our intention was to elaborate on our hypothesis that we believe the market is in a correction phase, but will bounce back in a huge way later on this year.  For now, it is time to trade the old reliable sectors and stocks making headlines in our small cap space.

A few months back we broke from ‘serious’ stock writing to put in our two cents on the Herbalife (NYSE – HLF) drama.  Let’s face it, human conflict sells on TV and Wall Street as people love clashes and quarrels.  Charts and numbers are no contests for spats and board room spectacle.

As you may or may not know, the board at The Men’s Wearhouse (NYSE – MW - $37.31) fired founder and Chairman George Zimmer last week after irreconcilable differences between him and his handpicked successor, CEO Doug Ewert.  You may recognize Zimmer from the company’s TV ad tagline, “…You’re gonna like the way you look, I guarantee it.”  There are several reasons that have been suggested to have been causes for the rift.  Yesterday, it came to light that Mr. Zimmer wanted to take the company private and sell to a private investment group and was blocked by the board.  Any way you cut it this was an ugly divorce but created some great entertainment over the last few days.

• That was the line muttered by one of Tony Soprano’s underlings in an episode in Season 1 of The Soprano’s.  Tony put Christopher Moltisanti in charge of a stock buying effort, or more aptly put, a stock buying coercion effort at a local NJ brokerage company attempting to drive the price up of the fictitious company, Wobistics.  (I am unsure of the spelling).