Stocks in Motion

Attention momentum investors!  Newton’s Laws tell us that objects in motion tend to stay in motion.  This applies to stocks going down, stocks going up, and also stocks experiencing repetitive motion, a.k.a. trading ranges. I usually write about “buy low” opportunities within such trading ranges, but today I’d like to point out some “objects in motion” — a.k.a. stocks — which are bucking the market and possibly breaking out on the upside.

Copa Holdings (CPA, $67.46) is a Latin American provider of airline passenger and cargo service in Panama, Colombia, Venezuela and Ecuador. CPA is projected to have earnings (EPS) growth of 65% through fiscal year 2013, and the stock pays a dividend of 2.4%.

The stock rose to a trading range of $61 to $70 since early May 2011 and did not suffer through recent summer doldrums in the stock market. There’s some price resistance at $70 as the stock re-visits its 2007 highs, but considering its earnings momentum and share price outperformance, I would be happy to buy this stock at $66 or $67 and wait for the next breakout.

Visa (V, $91.42) is a global payments technology company that connects consumers, businesses, banks and governments in more than 200 countries and territories. The company is projected to have earnings (EPS) growth of 67% through fiscal year 2013.

Visa stock fully recovered from the 2008 Financial Meltdown, reached a new high, established a new trading range of $66 to $96 during the last 18 months, and now appears to be completing that trading range in preparation for another move upwards. I would buy Visa on any down day in the market for a good growth stock opportunity.

Kimberly-Clark (KMB, $69.29) is a global consumer products company which manufactures diapers, paper towels, tissues and more. Corporate net income is projected to grow 23% through fiscal year 2013.

The stock has recently broken past resistance at $68. The next stop on its upward climb should be at $72 as it re-visits its 2007 highs.  There will be some price resistance there as frustrated people who’ve owned the stock for four years will be selling, causing the price to bounce around a bit in the $68-$72 area. But there aren’t too many of those people, because KMB has outperformed most other stocks relative to the 2008 Financial Meltdown, AND investors are receiving a 4% dividend.

* * * *

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold and its employees harmless and to completely release and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment. Recommendations are based on hypothetical situations of what we would do, not advice on what you should do.

Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment.

The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. When information is provided herein from third parties — such as financial news outlets, financial websites, investment firms, or any other source of financial information – the reliability or completeness of such financial information cannot be guaranteed.

The information contained on this website is provided for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities. This is not an offer or solicitation for any particular trading strategy, or confirmation of any transaction. Statements made on the website are based on the authors’ opinions and based on information available at the time this page was published. The creators are not liable for any errors, omissions or misstatements. Any performance data quoted represents past performance and past performance is not a guarantee of future results. Investments always have a degree of risk, including the potential risk of the loss of the investor’s entire principal. There is no guarantee against any loss.

* * * *

Goodfellow LLC is a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.


Leave a Reply

Your email address will not be published. Required fields are marked *