Finding Excellent Companies Hitting on All Cylinders

Jordan Kimmel |

Excellent companies, hitting on all cylinders. That’s all an investor in the stock market should be looking for. And of course, not over paying or buying after a recent runup.

I have shared a few ideas in this column over the last few months, and it’s nice to see Wisdom Tree ($WETF) and Winnebago ($WGO) moving so well. But face it, the market’s been on a tear and lots of companies stock prices are up. That’s what bull markets are all about. The problem is that the media keeps feeding scary stories to the nervous public and the clowns in Washington continue to destroy confidence almost daily.

So again, excellent companies, hitting on all cylinders. The Magnet® model looks for the companies that score out highly on a combination of growth, value, and momentum. There are not many--but that’s OK! They are the only ones I want to invest in. I then try to use technical analysis to find those companies while they are on a “pullback”- offering an opportunity to buy them “oversold”.



I mentioned NOAH Holdings ($NOAH) a few weeks ago and suggested it was overbought then but I would mention it if it looked ready again.  Momentum traders did in fact sell it off on their earnings release. Now after basing for a few weeks-I just added some here.

Over the weekend while I was running the Magnet screens I noticed Alliance Fiber Optic ($AFOP) passed my “Elite” screen and has been offering a pullback for some time now. I added to my position today.

Yes the market has already had a great year. I hope you did as well! The key has been, and will always be, invest in the right companies at the right time- and ignore the “sky is falling” nonsense you’ll be hearing forever!

Happy Holidays and a Prosperous 2014!

This article has been prepared solely for informational purposes, and is not an offer to buy, nor sell or a solicitation of an offer to buy or sell any security, product, service or investment.  The opinions expressed herein do not constitute investment advice and independent advice should be sought where appropriate.  All information and opinions expressed herein are current as of publication and are subject to change without notice.

Jordan Kimmel, chief market strategist for KCD Financial Inc. Member FINRA/SIPC.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AFOP Alliance Fiber Optic Products Inc. n/a n/a n/a 0 Trade
WGO Winnebago Industries Inc. 28.98 -0.18 -0.60 236,454 Trade
NOAH Noah Holdings Limited 25.32 -0.07 -0.26 64,946 Trade
WETF WisdomTree Investments Inc. 8.46 0.09 1.02 1,546,348 Trade
CBGI Cannabusiness Group Inc 0.03 -0.00 -9.09 6,200

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