This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Nine Stocks Take Trip to the Woodshed

Gamestop (GME) ($25.20) revealed that some used video games sold at the retailer would not work on the new Xbox game console and the stock dropped from a high of $27.01 on Feb. 5 to a low of $23.75 on Feb. 6. GME has been chopping around between $28.35 on Dec. 13 to $22.30 on Jan. 11, so the stock has been extremely volatile. GME has been bouncing off its 200-week SMA in recent weeks at $22.51 with a buy rating and influenced by a monthly value level at $24.16 and a quarterly pivot at $25.98.

Moody's (MCO) ($47.49) fell in sympathy with a Justice Department's civil charges against its ratings rival Standard & Poor's. MCO has not been charged concerning inflated ratings on toxic mortgage securities but the stock fell from a multi-year high at $55.58 on Feb. 1 to $42.71 on Feb. 5 holding its 200-day SMA at $43.15. MCO has a buy rating with my annual value level at $39.68 with a semiannual risky level at $48.54.


Life Time Fitness (LTM) ($41.50) pre-announced weaker than expected preliminary quarterly results on Jan. 31 and the stock plunged from $50.99 to $39.10 on Feb. 1. LTM has a hold rating with a semiannual value level at $40.02, which held at the low, with a weekly risky level at $47.70.

McGraw-Hill (MHP) ($44.61) fell from a multi-year high at $58.62 on Feb. 1 to a low of $43.33 on Feb. 5 on the potential $5 billion charge against their S&P ratings agency on alleged inflated ratings on mortgage-backed securities filed by the Justice Department. MHP has a buy rating after plunging below its 200-day SMA at $50.44. My semiannual value level is $34.97 with an annual pivot at $45.86 and another annual pivot, now a risky level at $55.59.

Constellation Brands (STZ) ($31.37) was flying high with an all-time high at $39.64 on Jan. 29 and plunged to a low of $28.37 on Jan. 31, as the Justice Department considers blocking a beer merger that would have a Bud and Corona under one umbrella. The stock closed that day above its 200-day SMA now at $30.23. STZ has a buy rating with my semiannual value level at $29.94, which held at the low, an annual pivot at $30.65, which is a magnet, and a weekly risky level at $35.08.

Time Warner Cable (TWC) ($88.09) beat EPS estimates by 3 cents a share on Jan. 30 earning $1.57 per share, but the stock fell on weaker than expected forward guidance. TWC closed at $100.70 on Jan. 30 and traded as low as $86.80 on Feb. 1, and is below its 200-day SMA at $89.08. The stock has a buy rating without a value level with a semiannual pivot at 92.08 and weekly risky level at $96.86.

Yum! Brands (YUM) ($62.93) beat EPS estimates by 2 cents a share on Feb. 4 earning 83 cents per share, but repeated warnings about its KFC unit in China, where there is food safety concerns about KFC's chicken. This stock has been taken behind the woodshed three times since setting a multi-year high at $74.75 on Nov. 29. The stock traded as low as $59.68 on Feb. 5 following its latest whipping. The stock is rated a buy with a monthly value level at $61.37, which held around the low, with a weekly risky level at $65.55.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs