Shopping List: Yahoo, Citrix, IRF
Keep your eye on the movement in these names...
Here are a few stocks now on my shopping list:
- Yahoo (YHOO) – Yahoo has just been terrible this year, in fact awful. Interestingly enough, the stock has been strong on the very weakest days, like yesterday. This is a sign of one of two things. Either the stock is washed out and cheap enough that it will move on its own news flow now, or some positive catalysts are brewing under the surface and some accumulation is taking place. One such catalyst is the announcement by Alibaba to go public in recent weeks. A confirmation of a firm date on this deal would put YHOO into must-own status until Alibaba goes public. Yahoo also fits my theme of buying tech when it's selling cheap and technically washed out, while waiting for the catalyst to come to you.
- Citrix (CTXS) – Citrix posted a very good quarter and responded accordingly, then held pretty well into recent intense selling until yesterday's smack down. Competitor F5 Networks (FFIV) also posted a good quarter, but got hit on a merger deal. However, the confirmation of strength by FFIV and Cisco (CSCO) shows the underlying industry is strong. Citrix has been an off-again, on-again name in the merger rumor mill and I would agree that it exhibits some favorable traits, including a balance sheet from heaven. I would favor the name a few percentage points cheaper, or somewhere between the 50 & 200 day MA's ($32-35).
- International Rectifier (IRF) – International Rectifier is an old-school chip name that sells power semiconductor products (transistors, diodes, and rectifiers). The stock was slightly higher yesterday and has base building a very long time. Stock is cheap on current and forward P/E, PSR & P/B basis. However, I probably like the technical picture better than the fundamental one. As a word of caution, there are some accounting issues with this name and it fired its CFO. Accounting issues don't give me the warm fuzzies, but a chip stock that is exhibiting the kind of technical patterns that IRF is sporting is going to at least get put on my watch lists.
Now, adding stocks to the list is not buying them. Nothing wrong with waiting for the hourly or daily charts to calm down before getting your feet wet on new names.
I did add Apple (AAPL) before, with a stop around $120.
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