Are Tuesday's Most-Watched Tickers Turkeys, or Top Ideas? (MIMV, SCHS, ORLY)

Nov 20, 2012 8:41:32 AM PST | 239 View(s) | No Comment(s) - Post a Comment Rating

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StockHQ:

ORLY
$113.09 +$1.14 +1.02%
SCHS
$0.00 $0.00 0.00%
MIMV
$0.10 +$0.01 +12.07%

Though some traders - professional and amateur alike - have already started their long weekend, the trading lull that generally surrounds Thanksgiving is actually nice, tame time to wade into some new positions. Three high-odds names are standing out as prime candidates today... O'Reilly Automotive Inc. (NASDAQ:ORLY), Mimvi, Inc. (PINK:MIMV), and School Specialty, Inc. (NASDAQ:SCHS). Here's a closer look at all three, what's driving them, and what will (ideally) happen next.

In retrospect, the fact that School Specialty, Inc. knocked it out of the park last quarter should come as no real surprise. Though mid-2011 and early-2012 were miserable for the company, SCHS walloped EPS estimates of $0.65 for Q2 by earnings $1.16. Last quarter, analysts were expecting earnings of $0.74 per share, but they got $0.75, well up from last year's $0.47. Given that the strong - and growing - numbers are trend, there's little the company has left to prove about its tutoring and teaching tools.

The real story, however, is with SCHS shares. Thanks to the strong results last quarter, the stock's popped above the 20-day and 50-day moving average lines, snapping a long-term downtrend in one fell swoop. Though the sheer size of today's gains may invite something of a pushback later on this week, School Specialty, Inc. has actually done the bulk of the heavy lifting it needed to do to turn things around.

Though also a little overbought in the near-term and likely due for a small bearish pushback, O'Reilly Automotive Inc. looks like it's back in a bullish groove again. To fully appreciate just how big of a deal this is for ORLY, however, one has to take a step back and look at a longer-term weekly chart. Though volume has lightened on the way up, the stock's fought its way back above the 200-day moving average line following a monster pullback in the middle of the year. Thing is, if this rally turns into the kind of rally we saw from the stock beginning in 2011, this should be huge.

And, ORLY can certainly justify a higher stock price. Though 2011's growth wasn't as impressive as 2010's, through thick and thin, the automotive part retailer has continued to move forward, growing the bottom line no matter what lese was happening (or supposed to happen) to the company. Even more compelling: The big growth that spurred bullishness from O'Reilly Automotive shares in 2011 has actually been rekindled over the past three quarters. The market's just starting to believe in what they see.

Last but not least, Mimvi, Inc. is on the move. In fact, it's been on the move since September. It's just that the September rally from MIMV was a little too much, too fast, and had to be reeled in. It's the fact that the bulls have regrouped in the meantime and jump-started the effort at a more sustainable pace that makes this a worthy (even if speculative) trading idea now.

Just for the sake of clarity, it looks like MIMV is the beneficiary of a promotional effort. That means - eventually - the drum-banging will stop, and so too will the rally. It's still accelerating right now, however, and volume is on the rise. Mimvi should get some more traction from the effort, offering up a quick ride for those who can get off in time.

Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.