Updated from 6:15 a.m. EST
At the start of each week I look to find stocks that can rise in the coming week, no matter which way the market moves. Even if we have another 400-point downswing in the
, hundreds of stocks will close the day higher, and it's my job to help you uncover the stocks most likely to do so.
includes names like
. But before we look at this week's picks, let's review how
- Google (GOOG) - Get Alphabet Inc. Class C Report: Up 1.5% on the week.
- Plains Exploration & Production (PXP) : Down 3% on the week despite the strong move in oil.
- Local.com (LOCM) : Down 3% on the week.
- Yum! Brands (YUM) - Get Yum! Brands, Inc. (YUM) Report: Down 4% on the week after the packaged foods company reported solid earnings and international growth. However, revenue was pressured by high chicken and cheese costs.
- Dell (DELL) - Get Dell Technologies Inc Class C Report: Down 4% on the week.
- Manitowoc (MTW) - Get Manitowoc Company, Inc. Report: Down 4.2% on the week despite beating Wall Street earnings estimates.
- Inverness Medical (IMA) : Down 7.3% on the week.
- Archer Daniels Midland (ADM) - Get Archer-Daniels-Midland Company Report: Down 10% on the week despite strong earnings.
- Ram Holdings (RAMR) : Down 10% on the week as the company seeks "a number of alternatives to improve its capital position."
- Aluminum Corp. of China (ACH) - Get Aluminum Corporation of China Limited Sponsored ADR Class H Report: Down 14% on the week after teaming up with Aloca (AA) - Get Alcoa Corp. Report to buy a nearly 10% stake in Rio Tinto (RTP) - Get REINVENT TECHNOLOGY PARTNERS CLASS A Report.
Now let's take a look at the
First up this week is
, which gathers and sells natural gas in the U.S. In the beginning of January, Jim Cramer said that he's been expecting natural gas to catch on for years, particularly since natural gas is basically the same price it's been for the past two years.
Southern Union owns 50% of the Florida Gas pipeline. Florida is a great market to be in because its population is growing very quickly as America's aging baby boomers retire to warmer climates. Florida's summertime weather makes the Florida Gas pipeline highly desirable, as air conditioners and large commercial freezers use an abundant supply of natural gas to keep them working.
Southern Union also owns the largest liquefied natural gas import terminal in the U.S. This terminal has sent out capacity of 1.8 billion cubic feet of natural gas per day.
Despite posting in November a third-quarter earnings beat and increasing its annual dividend by 50% to 60 cents a share, shares of Southern Union have been in a horrible slide. The stock hit new 52-week lows on Jan. 22 and 23.
With organic growth projects and potential for continued strong earnings Southern Union is very attractive at current prices.
Also worth looking at is
New York Stock Exchange
, a stock that is flirting with its 52-week low. The exchange last week reported in-line earnings but also disappointing delays in expected cost savings from recent acquistions. There's been a lot of discussion on Stockpickr.com about this stock's slide, but let's take a step back and look at the basic fundamentals.
NYSE has EBITDA of $1 billion, and that number is expected to see a double-digit rise over the next year. Its enterprise-value-over-EBITDA multiple of just 11 puts it in potential buyout territory. Now I don't believe NYSE will get acquired, but this EBITDA multiple should help financing issues with the AMEX.
One of NYSE Euronext largest holder is mega hedge fund
, which holds some 15 million shares of NYSE stock.
For more detailed analyses and the rest of this week's picks, check out the
As always, to find the snapbacks and potential breakouts on a regular basis, check out these Stockpickr portfolios, which I use in my own research each week:
- Today's Hot List: This daily list is a must-view every midday to see what stocks are making the biggest moves and why.
- Always check the Biggest Percentage Losers, a list of stocks that lost big the day before, because they can snap back hard. When you check this list on Stockpickr, you can see which stocks are owned by the quality hedge funds and mutual funds. Pay attention to those. They will be buying at the lower prices, so you should be also.
- Ditto for the 52-week-low list. You must check the above two lists every day if you hope to find volatile stocks.
- Biotech Short Squeezes: Dendreon (DNDN) and others can often be found in this category.
- Stocks Rising on Unusual Volume: These are potential breakout stocks.
- Stockpickr's System Trades of the Day: These are trades triggering that day in various back tested trading systems we've developed.
- Stocks With Unusual Option Activity: Perhaps someone knows something?
- Latest Activist Situations: These are beaten-down stocks that hedge funds are accumulating shares of and demanding change in. Believe me, these hedge funds piggyback each other. And once they start rocking the boat, things happen quickly. This should be on your must-view list.
One final place to frequent is the
section on Stockpickr, where ideas such as those presented in this article are thrown around daily.
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of
LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the
and the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
to send him an email.
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