Locking in Four Double-Digit Percentage Gains and Making a New Small-Cap Banking Momentum Play

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

It was a flat to moderately positive week for U.S. stock markets with the Dow Jones up 0.11%, the S&P 500 up 0.81% and the NASDAQ gaining 1.61%. The MSCI Emerging Markets Index eked out a gain of 0.12%.

Big gainers in your Bull Market Alert portfolio included The Chemours Company (CC), which jumped 8.21%, Littelfuse (LFUS), which rose 5.82%, and ABM Industries Incorporated (ABM), which added 4.63%.

A whole slew of positions hit new 52-week highs. These included ABM Industries Incorporated (ABM), Masimo Corporation (MASI), Littelfuse (LFUS), LogMeIn (LOGM) and The Chemours Company (CC).

With these broad-based gains in your portfolio, it is time to adjust your stops to lock in some profits.

Raise your stop in ABM Industries Incorporated (ABM) to $42.75 to lock in a 15% gain in the stock.

Raise your stop price in Littelfuse (LFUS) to $147.70 to lock in at least a 15% gain in the stock.

Raise your stop price in LogMeIn (LOGM) to $102.40 to lock in at least a 15% gain in the stock.

Raise your stop in Cirrus Logic, Inc. (CRUS) to $56.40 to lock in at least a 10% gain in the stock.

The U.S. small-cap index has been on fire since the election. Moreover, it remains the sole major U.S. sector that has stayed strong even as the Nasdaq and S&P 500 have slowed their ascent in recent days.

Banking, in particular, has been one of the small markets’ strongest sectors, boosted by the prospects of faster economic growth and higher interest rates ahead.

This week’s Bull Market Alert recommendation, Home BancShares, Inc. (HOMB), is just such a banking small-cap momentum play, as well as a stock that has become a big favorite among some of the leading small-cap investment strategies.

Exclusive  Taking an Indirect Fracking Play and Preparing for a Clinton Presidency

Headquartered in Conway, Arkansas, Home BancShares, Inc. is a bank holding company. It is better known to the public through its wholly-owned subsidiary, Centennial Bank. The bank provides a broad range of commercial and retail banking, plus related financial services, to businesses, individuals and governments in Arkansas, Florida, Alabama and New York City.

Home BancShares has more going for it than just the general rally in small-cap bank stocks.

Last week, a U.S. Bankruptcy Court in Tampa, Florida, designated Home BancShares, Inc. as the winning bidder to purchase The Bank of Commerce, a bank that operates in the Sarasota, Florida, area. Immediately following the acquisition, Bank of Commerce will become part of Centennial, boosting Centennial’s footprint in Florida substantially.

So buy Home BancShares, Inc. (HOMB) at market today and place your stop at $22.00.

With the stock overbought after last week’s news of the acquisition, I am holding off on making an option recommendation for now.

Portfolio Update

The TJX Companies, Inc. (TJX) gained 3.10%, rising each day after reporting positive earnings last Tuesday. Earnings per share (EPS) came in at $0.91 on revenue of $8.3 billion. Consensus analysts’ estimates called for $0.87 on revenue of $8.3 billion. Revenue pushed higher by 6.9% year-over-year, and TJX released fourth-quarter guidance looking for further earnings increases to $0.96-$0.98 per share. TJX is a BUY.

Allete, Inc. (ALE) moved 1.96% higher. ALE announced last week its acquisition of Water & Energy Systems Technology (WEST) Inc. This acquisition pushes ALE’s reach deeper into the Southern California market — a market where solutions to tightening water needs and increasing demands continue to climb. ALE is trading above the 50-day moving average (MA) and is a BUY.

Exclusive  Bernanke's Gift To The Global Bull

ABM Industries Incorporated (ABM) jumped 4.63% last week, adding to strong gains from the week prior. Although this position had been trading sideways for several weeks and consolidating before the recent presidential election, since the Nov. 8 election this position has recorded two back-to-back weeks of substantial gains. Now up 18% in your portfolio, ABM remains a BUY.

Cirrus Logic, Inc. (CRUS) also rose sharply last week, gaining 5.82%. CRUS hit a 52-week high at just over $58 back in late September. Since this time, CRUS has pressed up against this resistance level twice, once on the day of its last earnings report. This type of upwards pressure and technical trading typically bodes well for higher prices once there is a definitive break above $58. CRUS is a BUY.

Take-Two Interactive Software (TTWO) traded sideways last week, dipping just 0.65%. TTWO released big news recently via its 2K publishing wing, announcing that its NBA® 2K17 basketball title has partnered with Fitbit. This move is the first of its kind to give in-game rewards to players based upon “healthy activity” earnings tracked via their Fitbits. Gamers around the world who achieve 10,000 steps in a day tracked with their Fitbit device will receive a temporary attribute boost to their MyPLAYER in NBA 2K17, enhancing their MyPLAYER’s performance on the court. This development was big enough to push TTWO shares up 3% the day after the announcement and skyrocket usual trading volume by an astronomical 1,033%. TTWO is a BUY.

The Chemours Company (CC) powered 8.21% higher for its first week in your portfolio. CC is a classic momentum play, and it is good to start off with strong gains as some pullbacks are inevitable. CC hit a new 52-week high as it continued its recent strong run. CC is a BUY.

Exclusive  Global Stock Investor Hotline 3

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

The surprising election of businessman and reality television star Donald Trump to become the next U.S. president could propel stocks in a number of highly regulated sectors, including health care, energy, financial services and industrials. That view stems from a recent analysis by several T. Rowe Price equity experts who are predicting where investors may find the best returns during a Trump administration. The clear signal they are sending is that some sectors are much better positioned th

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE