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North American Energy Partners Ready to Rise

Written by on June 16, 2011 · Leave a Comment

North American Energy Partners is a small cap enterprise in the oil and gas equipment and services industry. It provides heavy construction, mining, and piling and pipeline installation services in the Alberta oil sands.

It has working arrangements with the largest companies operating in the oil sands, including ExxonMobil, Suncor, Syncrude, Shell, and Canadian Natural Resources.

The company has a market cap of $264 million with a price/sales ratio of 0.3 and a price/book of 1.5. The stock price has been hammered recently after it reported a $40 million write down related to a Canadian Natural Resources project. The company plans to redeploy its resources to other projects in the area.

Technically, the stock has retraced nearly 60% of its rise from the base it formed in late 2008 and early 2009 to its March 2011 peak. The sell-off appears exhausted and the stock is finding support in the $6.90-$7.00 region. The MFI is now turning up.

Here’s the trade (calculations based on June 15 close):

  • Buy NOA at market.
  • Stop loss is a daily close below 6.34 for a 12.9% loss. Sell all at market the next morning.
  • Target one is the intraday price of 8.60 for a 18.1% gain. Sell half and move stop to breakeven.
  • Target two is the intraday price of 9.7 for a 33.2% gain. Sell rest.

 

Categories: Basic Materials, Longs - Tags: , ,

Minefinders Ready to Rise

Written by on June 11, 2011 · Leave a Comment

Minefinders (MFN) is ready to turn around.

Minefinders is a precious metals mining and exploration company. It owns and operates the Dolores gold and silver mine located in northern Mexico. The mine’s proven and probable reserves are 4.2 million gold equivalent ounces. MFN expects to produce 65,000  to 70,000 ounces of gold and 3.3 to 3.5 million ounces of silver in 2011. The company expects to achieve this at a cost of $450 to $500 per gold equivalent ounce cost. The company is also exploring two other sites in Mexico which are not yet in production.

The stock has had a sharp sell-off since late April 2011. It now sits at the 61.8% fib retracement of its rise from October 2010. This also happens to be a level of support created when a former line of resistance stretching back to late 2009 was broken on March 21, 2001. The money flow index has bottomed out and is now rising.

Here’s the trade (calculations based on June 10 close):

  • Buy MFN at market.
  • Stop loss is a daily close below 11.90 for a 3.3% loss. Sell all at market the next morning.
  • Target one is the intraday price of 13.60 for a 10.5% gain. Sell half and move stop to breakeven.
  • Target two is the intraday price of 14.07 for a 14.3% gain. Sell rest.

Categories: Basic Materials, Longs - Tags: , ,

BDX Ready to Rise

Written by on June 9, 2011 · Leave a Comment

Becton Dickinson (BDX) is an 18.9 bn dollar company in the medical equipment and supplies industry. It manufactures and sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products. Its customers include healthcare institutions, life science researchers, clinical laboratories, industry and the general public. Last year the company had 7.4 bn in sales and it has grown sales every year for the last decade. BDX has a profit margin of 16% and an ROE of 27%. Its debt to equity ratio is 0.49.

BDX has been in a steady uptrend since December 2008. Since its recent high on May 19, the stock has pulled back to find support at its 50 day MA and its 38% fib level. Its 10 period MFI is turning upward.

Here’s the play (calculations based on June 8 close):

  • Buy BDX at market.
  • Stop loss is a daily close below 83.04 for a 2.9% loss. Sell all at market the next morning.
  • Target one is the intraday price of 87.73 for a 2.6% gain. Sell half and move stop to breakeven.
  • Target two is the intraday price of 89.78 for a 5.0% gain. Sell rest.

Categories: Healthcare, Longs - Tags: , ,

EWM poised to fall

Written by on June 9, 2011 · Leave a Comment

EWM has triggered an MFI sell signal. Here’s the play:

  • Short EWM at the market.
  • Stop Loss is a close above 15.09 (1.2% loss). Cover at the next open.
  • Target One is 14.66 (1.7% gain). Sell half the position here and move your stop to BE.
  • Target Two is 14.32 (4.0% gain).

Categories: ETFs, Shorts - Tags: , ,