Market Monitor

Those who know me well know that I am fairly superstitious character. Occasionally I take superstition to extremes. For example, when the Baltimore Ravens beat Indianapolis Colts and then the Denver Broncos in successive NFL playoff games in January, I was sitting in the exact same spot the entire time. What is crazier still is that I elected to go through the same routine and sit in the same spot for the AFC Championship Game and then the Super Bowl, instead of joining friends at various parties.

Good Morning.  We are staying with our recommended buying strategy from our Goldman Guide for early May in bio-tech, leisure stocks, automotive, and casual dining.

Today’s stock is along the leisure theme, but with a twist.  The seasonal play here is traditionally to stocks aligned with summer vacation and the great outdoors.  LeapFrog Enterprises, Inc. (NYSE – LF - $8.96) is a twist on this theme with ‘summer school’ in mind.

Good Morning.  We hope everyone had a great weekend. We are going back to the old biotech plays since they are on fire, starting with Halozyme Therapeutics, Inc. (NASDAQ – HALO - $6.28).

A key part of trading, as no doubt all of you are aware, is to know when to cut your losses.  Here is a good example of why to engage in such actions.

On January 11 we featured Magnum Hunter Resources (NASDAQ – MHR - $2.69) as part of a 3-stock parlay in a special options focused version of the Market Monitor.  The stock is down over 32% from our pick at $4.13.  Yes, we know. Ouch.

Once in awhile, a once mega-cap or large stock will come into play in our universe.  While Sprint Nextel Communications, Inc. (NASDAQ – S - $7.09) is in our price range its market cap is $21.5 billion.  Is this a unique opportunity to go long on a ‘cheap’ stock or just something to avoid on a downward spiral?

Good Morning! Almost exactly a year ago, in our inaugural edition of The 30-30 Report, we recommended buying Arena Pharmaceuticals (NASDAQ – ARNA) ahead of its meeting with an FDA advisory panel, regarding the potential approval of its weight management drug. It was approved 10 days later and the stock ran 30%. Today, we highlight a stock appearing before an FDA panel on May 2nd, and if approved, the stock will soar.

Good Morning.

Today’s featured stock is BIOLASE, Inc. (NASDAQ – BIOL - $5.15).  The Company provides innovative solutions in laser technology for dentistry and general medicine.  Its Waterlase systems are used for cutting tissue matter, and its diode laser system is used in soft tissue, pain therapy, and cosmetic procedures, like teeth whitening.

Coming up for topics and stocks for our daily Market Monitor can present challenges sometimes, particularly on Monday mornings after a huge sell-off from the prior week.  Obviously, the big news story last week was the Boston Marathon bombing, and thankfully, the suspects being brought to justice.  You may not have paid attention to the fact that President Obama’s gun legislation was halted in the Senate, so it is back to square one for gun control advocates.  Ask yourself, as I did, what stock in our small cap space tends to benefit most from these events?

After a tumultuous week, we could use a drink or time at a local pub for happy hour. With that in mind, today’s featured stock is Craft Brew Alliance, Inc. (NASDAQ – BREW - $7.45).  The Company brews and sells its brands Widmer Brothers, Redhook, Kona, and Omission in draft, bottles, and cans to restaurants, bars, and stores.  It also operates 5 pub style restaurants.

Good Morning.  There seems to be a general panic induced sell off across the board in equities and commodities as people head to cash.  In these times it is crucial for stock pickers in the small-cap space to put priority on near-term growth or hot sectors such as LEDs.