Looking for a few short-term trades because you're not willing to dig in for too long in this choppy environment? I can't say I blame you. May I direct your attention to Helmerich & Payne, Inc. (NYSE:HP), Bacterin International Holdings Inc. (AMEX:BONE), and Complete Genomics, Inc. (NASDAQ:GNOM)? Those three names are (admittedly in my opinion) your best bullish 'trading' bets right now. Here's why.
Though Bacterin International Holdings Inc. shares have been working on a rebound since early June, the big line in the sand was hurdled today when the stock finally made its way above the 50-day moving average line. Though there's nothing that's happened in the last two years that would imply BONE has laid the groundwork for a long-term move, this modest bullish effort does look a lot like the onset of the last couple of trade-worthy rallies.
BONE is classified as a medical equipment manufacturer by most sources, though the description doesn't quite do the company justice. The company makes 'biologic' material that aids in the repair and healing of wounded tissue and bone. And, though not yet profitable, Bacterin International Holdings is getting there. Through a pretty deep menu of products, the company has cranked up sales and whittled down the quarterly losses to within striking distance of positive earnings.
If the name Complete Genomics, Inc. rings a bell, it may be because James Brumley pointed out a breakout was approaching back on June 11th. Not to poach his pick (though he gave me the green light to talk about it today), but that breakout is looking more and more likely with each passing day. In fact, GNOM may well get over that hump tomorrow, now that the approach toward the 200-day moving average line has been resumed. Anything above $3.23 could set off bullish fireworks.
GNOM is one of those companies working on genome mapping... which has been a red hot area of late, now that the technology itself has been proven to work, and people are paying for it. Yet, the industry has only scratched the surface of its diagnostic potential, and not even scratched the surface of its drug-development potential. That fog is starting to lift right now though, and 2012/2013 is going to be the year when Complete Genomics is going to define its role in the space. As the market understands that better, it's going to love this stock more and more.
Last but not least, Helmerich & Payne, Inc. shares have finally fought their way above the 50-day moving average line today, after a couple of failed attempts over the past month or so. Today changes the game. But, that's not the biggest reason I'm exited about HP going forward though.
I say this with 100% seriousness: I'm bullish on the stock right now because the analysts finally (as a majority opinion) don't like HP. Guggenheim lowered its rating to a neutral (which in this bullish-biased world is basically a sell), and Macquarie lowered its rating to a neutral as well a few days ago. Global Hunter and Canaccord also dropped their ratings to neutral/holds, with one of the downgrades on Helmerich & Payne occurring in January.
So why is the stock rallying now if the professional investment community hates it? Because the so-called pros are usually late to the party. With no downside left to dish out, the stock can only drift higher. Here's the irony - the higher it drifts, the more those analyst flip back to bullish stances, which (of course) only fans the rally's flames and induces more new 'buys' on HP. That's what today's move is suggesting is in the cards.