This is a special companion edition of the Feb. 3 Marder Report for all subscribers.
Premium subscribers: This report replaces the regularly-scheduled Sunday video. The next video will be produced Monday evening, along with an updated Focus List.
Canopy Growth (CGC) is a member of the cannabis segment, which is undergoing an aggressive mark-up phase. The stock doubled in five weeks, then started forming a four-day handle, with the last three days having higher lows than the prior day.
A very aggressive entry would be above the 1/28 high of 50.99. A tight stop would be recommended so that if it does not go immediately, one is out and can contemplate re-entry if it materializes. This type of entry is only used when attempting to establish a foothold in what one believes may be a big winner. A tighter-than-normal stop must be used. Earnings expected Feb. 14.
Caredx (CDNA) can be taken above the cheater entrance pivot of 28.98, the 1/25 high. Earnings expected Mar. 7 post-close.
Cornerstone Ondemand (CSOD) is one to keep an eye on. The estimate for ’19 is 47%. Revenue growth in the two recent quarters is 14% and 10%. What is intriguing with CSOD is that while its pattern high is 59.18 (the 9/25 high), its five-year base high is 61.85. Much of the time, bigger bases create bigger moves. “The bigger the base, the farther they race” is a Wall Street adage.
A 95 RS stock in a 97 RS group with B- acc/dist rating. A plus is its 12/24 low just barely undercut its 11/20 low, despite the Nasdaq dropping 9% below its 11/20 low on 12/24.
This is worth watching. Earnings expected Feb. 12 post-close.
Inspire Medical Systems (INSP) was noted in the Jan. 27 report (“Price is four days into a handle and can be taken on a break of the 56.80 handle high). The comment stands. Earnings expected Feb. 12.
New Relic (NEWR) has good potential, what with its 58% March ’20 fiscal year estimate and steady revenue growth of 35%-36% in the recent two quarters. As well, price bottomed on 11/20, well ahead of the 12/24 low of the Nasdaq. Too, it has two major accumulation weeks of the last three weeks on the weekly chart.
Price is 3.4% past a cheater entrance pivot of 101.16 set 11/7. Earnings expected Feb. 6 post-close. Either a measured position could be taken around Friday’s close of 104.64 or any action could be delayed pending the earnings report of Wednesday.
Novocure (NVCR) shows a loss estimated for ’19, while sales grew 60% and 29% in the last two quarters. A 99 RS stock with an A- acc/dist rating.
Price ran up an explosive 75% in five weeks before forming a five-day handle. It could be taken above the handle high of 50.58. This is considered a very aggressive entry in light of there being just five days of rest following a 75% run. Earnings expected Feb. 28.
Tandem Diabetes Care (TNDM) forms a five-day handle and can be taken on a volume-backed move above the handle high of 46.00. Volume must be there.
The Trade Desk (TTD) has an unimpressive ’19 estimate of 15%. But revenue growth was 54% and 50% in the two recent quarters. A 99 RS stock. The accumulation in the base is not impressive. It may be worth seeing how the stock acts as it crosses its cheater pivot, particularly as it relates to volume.
The stock can be taken above the cheater pivot of 149.00, the high of 12/3. Earnings expected Feb. 21.
For intraday ideas and analysis: https://twitter.com/mardermarket
Unless otherwise noted, charts created using TradeStation. ©TradeStation Technologies, 2001-2019. All rights reserved.
The views contained herein represent those of Marder Investment Advisors Corp. At the time of this writing, of the stocks mentioned in this report, Marder Investment Advisors Corp., Kevin Marder, or an affiliate thereof held no positions, though positions are subject to change at any time and without notice. Estimate data provided by Thomson Reuters. Expected earnings release dates provided by EarningsWhispers.