A Sexy Singapore Stock

Nicholas Vardy

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

What a difference a week makes. After bouncing off of its 200-day moving average, the S&P 500 soared 5.6% this past week. That made the last five trading days one of the 29 strongest weeks in the S&P 500 since 1950.

Your Bull Market Alert portfolio had an even stronger week. Danish pharmaceutical company Novo Nordisk A/S (NVO) soared 8.22%. Last week’s pick — Hansen Natural Corporation (HANS) — got off to a strong start with a 7.15% gain, while CROCS Inc. (CROX) leapt 6.89%. Rayonier Inc. (RYN) jumped 5.73% and Alliance Resource Partners L.P. (ARLP) climbed 4.1%. The week’s top performer was the ever-volatile National Bank of Greece (NBG), which skyrocketed 13.74%.

As a result of these sharp upward movements, most of your current Bull Market Alert recommendations are back to BUYS.

With the crisis in Greece receding, your bet against the euro through the UltraShort Euro ProShares (EUO) dropped 4.73% this past week. With the immediate prospects of a Greek default now limited, I am recommending that you sell this position at a slight loss.

This week’s Bull Market Alert continues our recent momentum-based strategy with tech play Avago Technologies Limited (AVGO). Based in Singapore, the company designs semiconductors for the telecom, automotive, computer and other markets.

Avago is a typical high-growth technology story — and its recent blockbuster financial results reflect this.

Avago’s fiscal Q1 net income announced in late May rose by 50% as revenue grew and costs were kept in check. Net income in the three months to May 1 grew to $135 million, or 54 cents per share, from $90 million, or 37 cents per share, a year earlier. Adjusted earnings came to 64 cents per share, above the 62 cents per share expected by analysts.

For Q3, the company expects revenue growth of 5% to 8% from the previous quarter, implying revenue of $588 million to $605 million. That’s higher than the $586 million that analysts were expecting.

Exclusive  Lock in Double-Digit-Percentage Gains in This Software Bet

Overall, analysts see earnings rising 23% this year. Even better news: estimates for Avago have been revised upward steadily, based on a combination of management-initiated stock buybacks and higher than expected growth in 4G wireless networks. In fact, just over the course of the last two months, Citibank upped its target for shares from $40 to $42 to $45. That’s a 16.4% upside from Avago’s closing price on Friday.

Also, there have been recent reports that Avago will supply power amps for the iPhone 5. With Apple’s new phone expected to hit the streets in the fall of this year, this also should provide a boost for the stock.

Finally, from a technical standpoint, the stock has just broken out of a new trading range and is hitting new highs. In a momentum-driven market bouncing back from a sharp sell-off, this bodes well for the stock’s future performance.

So, buy Avago Technologies (AVGO) at market today and place your initial stop at $32.00. For potentially even bigger gains, buy the $40 January call options AVGO120121C00040000.

Portfolio Update

Alliance Resource Partners L.P. (ARLP) jumped yet another 4.10% this past week. With the stock now up 9.53% over the past month, this has been a solid performer. Trading above its 50-day moving average, ARLP is a BUY.

CROCS Inc. (CROX) soared 6.89% this past week and now is up a whopping 11.89% in just two weeks. Trading above its 50-day moving average, this stock is on fire and remains a BUY. Raise your stop to $23.80.

Hansen Natural Corporation (HANS) soared 7.15% this past week. Lots of options players are betting on a continued jump in the stock, with investors buying 2,885 calls on HANS, compared to just 202 puts. In other words, traders have scooped up 14.28 times more bullish bets than bearish. This stock remains a BUY. Raise your stop to $74.50.

Exclusive  GLOBAL STOCK INVESTOR HOTLINE UPDATE 67

Bank of Ireland (IRE) was flat this week. The Irish government slashed the Value Added Tax from 13.5% to 9% to stimulate its economy. With this bet on the Irish bounce trading below its 50-day moving average, IRE remains a HOLD.

National Bank of Greece SA (NBG) soared 13.74% this past week, as the Greek parliament passed a new austerity package. Here’s my favorite stat of the week about Greece: In a country of 11.3 million, only 5,000 Greeks admitted to a taxable income of more than 90,000 euros ($130,000). Shooting back above its 50-day moving average, NBG is a BUY.

Novo Nordisk A/S (NVO) soared 8.22% this past week. Novo Nordisk is applying for U.S. approval to use its diabetes drug Victoza in combination with long-acting insulin. NVO is back to a BUY.

Rayonier Inc. (RYN) jumped 5.73% this past week. Total log shipments to Asia from the U.S. West Coast last year were the highest they have been in 14 years. Much of this increase stemmed from China’s seemingly never-ending need for wood. RYN is back to a BUY.

Toyota Motor Corp. (TM) rose 2.66% this past week. The world’s largest car manufacturer announced that it is hiring 2,000 new employees in India. Back above its 50-day moving average, Toyota is now a BUY.

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

U.S. markets opened the week with two consecutive days of strong gains. Asian markets rose as well, but with less conviction. The tech-heavy NASDAQ Composite leapt 2.8%, while the S&P 500 Index and the Dow Jones Industrial Average added 2.2% and 2.1%, respectively. The S&P 500 and NASDAQ indexes both bounced up off of their 200-day moving averages. The S&P 500 Index has not closed under the 200-day moving average since September 2010. A clear move above or below this level can hav

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