Sep 10, 2010 8:47 AM PDT
I'm not a big fan of 'rewarding' a stock - by buying it - simply because it's going higher in the face of a headwind. So, don't assume that I'm bullish on Neurocrine Biosciences, Inc. (NASDAQ:NBIX) just because it's up 5.2% today. (Though it doesn't hurt.)
No, I'm bullish on NBIX just because it's been moving higher for two weeks now, while the rest of the market has lost ground. In fact, this small cap recently crossed back above its 200-day moving average line after hitting a wall there a few times earlier in the year. These are all hints of a bigger, bullish (& investment-worthy) paradigm shift for Neurocrine Biosciences.
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Normally I'm not a bottom-fisher. When it's a company like Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD) though, I'm inclined to make an exception. Though results are what drove it from $32.81 last Friday to a low of $24.58 on Monday, None of that changes the fact that this small cap company is on pace to earn $3.66 this year (and is a bargain at its current P/E).
And the technical side of PWRD is just as compelling Today's bar is a bullish inside day.... a sign of a reversal of the yesterday's weakness. And yesterday's low of $24.58 from Perfect World Co. shares? That happens to be a key Fibonacci line.
It all just looks too good to pass up.
And finally, it's not that Hypercom Corporation (NYSE:HYC) is up today that's got me interested - it's that HYC is well up for the last two weeks, and is at new 52-week highs, that has me curious. Indeed, we've seen a bullish beeline since March-2009's low of $0.81. That sheer persistent strength alone would be enough do draw in some investors. That's not even the best aspect of this small cap though.
What few people seem to realize is that Hypercom Corporation is on pace to swing back to profitability in 2010 (EPS of $0.33 in 2010). Some investors may recognize this, which may well be the reason for the recent strength. When the rest of the market sees it happen though, I'm looking for this one to really hit the gas.
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