Facebook (FB) continues its strong bullish uptrend, but we’re planning a short-term trading opportunity on the current retracement.
Let’s highlight the trend, trading levels, and possible trades setting up right now:
Facebook (FB) meets the textbook definition of strong trending stock (‘strong getting stronger’) with a rising trend, rising moving averages, and persistent series of higher highs and higher lows.
Price tends to retrace (pull back) in the context of a long uptrend, as we can see above.
[Related -Why Investing In IPOs Is A Foolish Move]
I highlighted four similar spots where price jumped above the upper Bollinger Band and then pulled back (retraced) either to the rising 20 week (green) or 50 week (blue) moving average.
Top 5 Rising Companies To Own In Right Now: Gulfport Energy Corporation(GPOR)
Gulfport Energy Corporation engages in the exploration, development, and production of oil and natural gas properties. Its principal properties are located in the Louisiana Gulf Coast, in west Texas in the Permian Basin and in western Colorado in the Niobrara Formation. The company also holds acreage position in the Alberta oil sands in Canada; and interests in entities that operate in southeast Asia, including the Phu Horm gas field in Thailand, as well as leasehold interests in the Utica Shale in eastern Ohio. As of December 31, 2011, it had 19.4 million barrels of oil equivalent of proved reserves. The company is headquartered in Oklahoma City, Oklahoma.
- [By Ben Levisohn]
Wells Fargo’s David Tameron and team note that oil exploration & production stocks are “trading well ahead of historical levels” but they find some stocks–includingApache (APA), Anadarko Petroleum (APC), and Gulfport Energy (GPOR)–that still trade at attractive valuations. They explain:
Top 5 Rising Companies To Own In Right Now: Petroleo Brasileiro S.A.- Petrobras(PBR)
Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.
- [By Ben Levisohn]
Should oil prices recover, we believe that deepwater drilling activity growth should lag growth in US shale activity, as project economics is generally better in US shales, and E&Ps involved in US shales are generally quicker to react. Deepwater activity is largely comprises a handful of companies (Petrobras (PBR), Statoil (STO), Total (TOT), Shell (RDS.A), BP (BP), ONGC, ExxonMobil (XOM) and Chevron (CVX)) and it is unlikely that these companies can meaningfully increase their rig demand in a short period of time to absorb the current oversupply. Thus, should oil prices rise in 2018, rig demand may increase, but likely not enough to tighten the market, given that supply equaling 43% of current working rig count is stacked and new supply equaling 25% of working rig count is under-construction and should be entering the market in the coming years. As a result, while we expect some improvement in rig utilization owing to rig retirements, it will unlikely be strong enough to meaningfully improve rates in 2018 above spot levels. Any demand increase in the interim could slow rig retirements materially, and be self-defeating. We thus are Sell rated on Transocean, Atwood and Noble.
- [By Manikandan Raman]
ADRs of Petroleo Brasileiro SA Petrobras (ADR) (NYSE: PBR) have underperformed, despite a recent upgrade from JPMorgan.
Rating And Justification
JPMorgan upgraded the stock to Neutral from Underweight on potential for lower credit risk, asset sales momentum, favorable regulatory environment and foreign exchange gains.
- [By Javier Hasse]
Maranhão, who replaced Eduardo Cunha as the Speaker of the House after the latter was suspended due to alleged interference in the investigation of the Petroleo Brasileiro SA Petrobras (ADR) (NYSE: PBR) (NYSE: PBR-A) corruption scandal, cited procedural flaws to justify his annulment of the Lower House vote. However, the head of the Senate committee, Raimundo Lira, assured that Wednesday’s vote would still take place.
Top 5 Managed Healthcare Stocks To Buy For 2017: Packaging Corporation of America(PKG)
Packaging Corporation of America produces and sells containerboard and corrugated products in the United States. Its corrugated packaging products, include conventional shipping containers used to protect and transport manufactured goods; and multi-color boxes and displays with strong that help to merchandise the packaged product in retail locations. The company also offers meat boxes and wax-coated boxes for the agricultural industry. Packaging Corporation sells its products through direct sales and marketing organization. The company was founded in 1867 and is headquartered in Lake Forest, Illinois.
- [By Daniela Pylypczak]
Jefferies announced on Monday that it has upgraded Packaging Corp of America (PKG) from “Hold” to “Buy.”
The firm also raised PKG’s price target from $49.00 to $70.00. Jefferies analystPhilip Ng also gave the companybull-case scenario target of $88. The upgrade comes after the firm announced earlier today that it has agreed to purchase all outstanding shares of Boise Inc. (BZ)for $1.995 billion. Analyst Ng believes the new acquisition will result in an attractive multiple.
Packaging Corp of America shares rallied 9.73% during Monday’s session. Year-to-date, the stock is up 39.87%.
- [By Ben Levisohn]
Packaging Corp. of America(PKG) has jumped 6.3% to $57.99 after it said it would buy Boise (BZ) for $1.28 billion. Boise has gained 26% to $12.55.
- [By Christopher Freeburn]
Shares of Packaging Corp. (PKG) jumped almost 13% in pre-market trading on Monday after the company announced that it will purchase a rival containerboard-maker.
- [By Paul Ausick]
Stocks on the move: Boise Inc. (NYSE: BZ) is up 26% at $12.55 following the companys acquisition by Packaging Corporation of America Inc. (NYSE: PKG) for $12.55 a share ($1.28 billion). Omeros Corp. (NASDAQ: OMER) is up 68.2% at $8.56 following an analyst upgrade. Northern Dynasty Minerals Ltd. (NYSEArca: NAK) is down 33.3% at $1.48 following an announcement from Anglo American plc that it was withdrawing from a massive copper mining project in Alaska.
Top 5 Rising Companies To Own In Right Now: Cinemark Holdings Inc(CNK)
Cinemark Holdings, Inc. and its subsidiaries engage in the motion picture exhibition business. As of June 30, 2011, it operated 436 theatres with 4,983 screens in 39 states of the United States, as well as in Brazil, Mexico, and 11 other Latin American countries. The company is headquartered in Plano, Texas.
- [By Monica Gerson]
Cinemark Holdings, Inc. (NYSE: CNK) is projected to report its quarterly earnings at $0.46 per share on revenue of $699.23 million.
Aecom (NYSE: ACM) is expected to report its quarterly earnings at $0.72 per share on revenue of $4.55 billion.
Top 5 Rising Companies To Own In Right Now: Valhi Inc.(VHI)
Valhi, Inc., through its subsidiaries, operates in the chemicals, component products, and waste management businesses. Its Chemicals segment produces and markets titanium dioxide pigment, a white inorganic pigment used to impart whiteness, brightness, and opacity for applications, such as coatings, plastics and paper, inks, food, and cosmetics. It also mines ilmenite in Norway. The company?s Component Products segment manufactures mechanical and electrical cabinet locks and other locking mechanisms, including disc tumbler locks, pin tumbler locking mechanisms, and electronic locks for the postal, transportation, furniture, banking, vending, general cabinetry, and other industries. Its security products are used in various applications, including ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and gaming machines, high security medical cabinetry, electrical circuit panels, storage compartments, gas station security, bank bags, and p arking meters. It also provides furniture components comprising precision ball bearing slides and ergonomic computer support systems for use in applications, such as file cabinets, desk drawers, computer related equipment, home appliances, tool storage cabinets, imaging equipment, and automated teller machines. In addition, this segment manufactures and distributes stainless steel exhaust components, gauges, throttle controls, hardware, and accessories primarily for performance boats. Valhi?s Waste Management segment engages in processing, treating, storing, and disposing hazardous, toxic, and low-level radioactive wastes. This segment serves chemical, aerospace, and electronics businesses, as well as governmental agencies. Valhi also offers insurance brokerage and risk management services; holds marketable securities; provides utility services; and owns and develops properties. The company was founded in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Co ntran Corporation.
- [By Lisa Levin]
In trading on Thursday, basic materials shares slipped by 0.61 percent. Meanwhile, top losers in the sector included Valhi, Inc. (NYSE: VHI), down 13 percent, and LSB Industries, Inc. (NYSE: LXU), down 7 percent.