Now that the public and investors alike have been well groomed for this doomsday scenario, everyone wants to know when this so called recession will occur. Could it happen this year or perhaps in 2009? No one really knows for sure, but the mood across the country and overseas is pretty grim.

If the Fed is forced to boost interest rates just to keep inflation in check, economic growth in terms of GDP will be a little hard to come by. If this turns out to be the case, then our markets woes have only just begun to unfold.

The Fed can only really handle one thing at a time. If inflation spirals out of control and they act on it, we’ll certainly be heading for a major slowdown. High inflation coupled with slow growth is the perfect recipe for stagflation.

At some point, I suspect one of these economic wheels will fall off and force this economy to sit on the sidelines for a break and much needed repair.

So, let’s assume for one moment that everyone expects the worse. How can we take advantage of the situation without exposing our portfolio to an imbalance of short/put option positions? For starters, we could look to high yield dividend plays. But then the question becomes, “How will I capture above average gains if I’m placing my money in high income producing investment vehicles?” Well, I have the answer.

Our flight to quality has begun and I cannot wait to share with you this unique opportunity. Permian Basin Royalty Trust (PBT:NYSE) is one of those fast movers hitting one 52-week high after another. The markets go down, yet this thing consistently climbs higher.

It’s not the recent breakout that caught my eye. You see, this little wonder play has shown that it can produce some sizeable returns over the years. In early 2003, PBT was valued at a meager $6. In just over two years’ time, those same shares climbed to $17. That’s a 183% gain over this time period. The annualized returns come in at about 73% during the same time horizon.

But something strange happened. In mid 2005, the momentum seemed to be lost. It fluttered along and bottomed out around $12 before once again resuming its uptrend in mid 2007.

Now that the previous highs have been taken out, we’re left with that same ‘ol high-flyer we once knew. Why are shareholders so excited about being apart of this phenomenon?

Well, for one thing, we’re talking about a firm that has managed to produce a return on equity of 4,439% with profit margins of 98.80%!! Profitability is not a concern, but there must be more of a pull than that right?

You bet. There’s plenty of cash on hand to take care of all the financial obligations. Typically I like to see companies that can afford to pay the bills. To do this, I’ll check in to see how the quick ratio is coming along. As I’m sure you already know, we’re looking for the ratio to come in above 1.0. In this case Permian Basin has an extremely healthy ratio of 4.50. So, there’s one worry out the door.

I’m sure you’re thinking that if Permian is making new highs, isn’t the stock expensive? To solve this dilemma we’ll look at the price-to-earnings ratio. Right now PBT has a P/E ratio of only 14.50. The industry as a whole has a P/E of 19.60, so it appears as though shares are still trading on the cheap.

So, if growth isn’t anything to tout, why would this stock appreciate in value? Part of the answer can be found in the information I have provided. On the other hand, it is also common practice for low growth investments to pay out a large dividend to their investors. Most people would be happy with say 2-5% annual dividend payout.
When it comes to yields, how high is too high?

Usually it is best to stay away from companies that pay dividends that are way out of line with their peers. Some stocks have high dividends because their shares price has fallen significantly and they need to retain investor interest. If a company can’t lure potential investors through growth, such as the utility industry, then those profits need to be redistributed back to the shareholder. As a company, you can expand operations with profits, or if growth is limited, cough up those monies and keep your investors happily on board.

Permian has a current annual dividend yield of 11.97%, which is broken down and paid out on a monthly basis!

Usually these high yield dividend plays just sputter along and do not really appreciate in value – not so with PBT. I think you know what to do. Let’s push the buy button and plan to hold onto these shares for a good while.

Our recommendation: Buy shares of Permian Basin Royalty Trust (PBT:NYSE) at or near $18.76 and plan to hold for many years to come.

Good investing,

Stephen Oakes
Editor, Black Sheep Trader & Volume Spike Alert

What you don’t hear are banking stocks that actually make the grade. Ones that have proven themselves time and time again.

Just when you thought the banking establishment was down and out, there’s one knight in shining armor winning a profitability battle. The flight of capital to quality banking stocks has already begun.

I found a banking play you’d actually be proud to own. Imagine bragging to your friends how much money you’ve made in an industry no one would touch with a ten-foot pole right now.

Since early 2001, shares of Wainwright Bank & Trust, ticker symbol W-A-I-N, have rocketed from a mere $4 to $13.98 at its recent peak. When you look at the stability and price appreciation attached to this stock, it’s hard not to get excited.

Believe me, I know what’s at stake here. You’re probably thinking is this guy feeling okay today. Well, the obvious answer to that one would be yes, and before you shake your head, let me explain the situation that is currently developing over at Wainwright headquarters.

I mean, we’re talking about a company that has done nothing but go up. And all of this has happened right in the face of a market recession and plenty of pullbacks.

I’m not talking about some fundamentally sound investment idea that may take years to reap solid returns.

The company I’ve mentioned is technically really to lift off. The real question is whether or not you have the guts to play contrarian and pick up shares in a banking play that is bucking industry trends.

If your answer was yes, then get ready to make some money. This stock best resembles a ladder. It’ll rise quickly, level off, gathering momentum, and then surge once again. It’s just one step after another in methodical fashion. Who doesn’t love a predictable stock?

Now, most investors out there jump into lucrative investment ideas at the worst time — near the top. Who could blame them – it’s the most exciting time to be in a play. Exciting, however, does not make one a great investor. Instead, you’re better off waiting for the stock to consolidate and buy at the very beginning of a breakout.

Using this philosophy, I stumbled upon Wainwright. The stock is quickly approaching a buying point and it’s probably safe to say that you could get the best possible price by jumping sooner rather than later.

Our recommendation: Buy shares of WAIN at or near $12.96 and place a stop loss 5% below your purchase price. Once the stock breaks out from its sideways trend it’s GOODBYE HORSES.

Good investing,

Stephen Oakes
Editor, Volume Spike Alert & Black Sheep Trader

On this one-year weekly chart, you will notice that this particular equity has traded in a very predictable fashion.

It has all the characteristics on a breakout stock. For example, we have an upward trend prior to consolidation and more recently, we’re seeing a shares surge to new 52-week highs.

To further advance my argument, I have located specific buy and sell points for you. Every time the Moving Average Convergence Divergence (MACD) indicator “blue line” crosses above the “red line” we have a buying opportunity. The reverse holds true when these diverge on each other.

In the past week alone, we’ve seen another buying alert. They do not come along very often and you can be sure that you’ll get in near the lowest possible price once the stock rallies toward $60 per share.

In case you were wondering, the Directional Movement Index (DMI) has also given me a buy signal to match that of the MACD.

Our recommendation: Buy shares of TNP at or near $38.60. Place a 5% stop loss.

Good investing,

Stephen Oakes
Editor, Volume Spike Alert & Black Sheep Trader

Our recommendation: Buy shares of RDNT at or near $9.40. Place a 5% stop loss.

On the daily charts, I’m seeing continued above average buying pressure which will certainly help in justifying the breakout.

If momentum holds and we get another big day it could be goodbye horses.

Our recommendation: Buy shares of LDG at or near 53.52. Place a 5% stop loss

Good investing…

It is important to note that you should never trade the stock inside the triangle with the assumption that the breakout will eventually assume the trend prior to this particular pattern.

Instead, trade in the direction of the breakout. In this case the breakout was to the upside — as noted by the green arrow on the chart. Additionally, we have a buy signal on the Moving Average Convergence Divergence (MACD) indicator.

We may move sideways for a candlestick or two, but eventually another pop will occur and send shares into the stratosphere.

Our recommendation: Buy shares of ECOL at or near $23.42. Place a 5% stop loss below your purchase price.

Good investing…

Yet another long-term breakout play. I circled the two buying signals for the MACD and DMI indicators. The DMI has been very strong over the past four years and has yet to turn negative.

Our recommendation: Buy shares of ENB at or near $38.29. Place your stop loss below major support at $34.

Good Investing…

Au Optronics (AUO) should fair quite well in the months ahead. This is a longer-term breakout play, hence the reason why the chart below is displayed on a four-year monthly chart.

Our recommendation: Buy shares of AUO at or near $18.70. Place a protective stop loss at $13.10.

Look for buying support from oversold MACD and DMI buy signals (under price chart). As you can see they have both diverged in a positive fashion in the beginning of September of this year.

Our Recommendation: Buy shares of GIII at or near $19.70. Place a 5% stop loss at $18.71.

Good Investing…

The downward pressure is finally over and the technicals confirm we have a buying situation here. There will be some volatility on this one. In my estimation, the ride up will be a mirror image of the activity seen over the past two years.

Our Recommendation: Buy shares of OSTK near $22.67. Place a stop loss at $19.75.

Good investing…

On this one-year weekly chart, you can see that the stock had been basing sideways for about nine months now.

More recently, there was a breakout above support near $28 per share. When the bulls finally step in to support the Dow this stock will really begin to take off.

If the technicals hold you could see shares hit $38 within six months.

Our Recommendation: Buy share of CSCO at or near $29.42 and place a stop loss below major support at $27.50.

Good Investing…

CDC Corp. (CHINA: NASDAQ) operates in China, Asia-Pacific, Europe, and the Americas and is heavily involved in the Internet, media, software, and gaming industries.

The China.com, Inc. unit provides mobile services and applications, online entertainment, direct marketing, and Internet products and services.

Technicals:

CDC News:
·06/12/07 – HONG KONG & ATLANTA–(BUSINESS WIRE)–CDC Corporation (NASDAQ: CHINA – News), a leading Global Enterprise Software and New Media Company, today announced that it is opening a new development center in Nanjing, China that will house more than 2,000 employees when fully staffed.

·06/05/07 – First quarter adjusted net income was $9.85 million, or 7.5 cents a share with revenue up 41% to $91.3 million. CDC’s net income was $209,000 during the quarter. Analysts expected earnings to come in at only 7 cents a share.

·05/29/07 – CDC’s China.com in advertising pacts with Google, China Mobile – Under an agreement signed last July, Google, Mountain View, Calif., is providing its search-engine technology to enable users in greater China to search English and Chinese content on China.com. With the expanded agreement, Google will advertise on China.com and explore new opportunities with the Beijing company.

Under the expanded agreement with China Mobile, the Chinese mobile operator will place video ads on China.com to promote its products and services to business professionals, its core user base.

“Our goal is to achieve a robust rate of growth in advertising that will equal or exceed industry projections for overall growth of 30% to 35% in online advertising this year in China,” -China.com.

Furthermore, analysts see this stock easily climbing to $14, which would equate to a 61% gain!

CDC is currently experiencing rapid growth in their software and gaming units. The Software unit makes up about 80 percent of the company’s revenue and is posting organic growth of about 15 to 20 percent year-over-year

Companies in this industry such as Oracle, SAP, and Infosys technologies have seen 150%, 400%, and 500% cumulative returns over the past 5 years. In relation to other large players, once tiny CDC gains traction in China and abroad, we could easily see similar market moves!

On a grand scale, CDC may be a small global player here, but the way Oracle (Nasdaq: ORCL) keeps snapping up growing enterprise-software entities, who knows whether CDC will one day become buyout bait. Maybe Electronic Arts will push for access into the company’s gaming unit. Source: Motley Fool

Another contributor to the rise of CDC’s share price could be speculation that the company might spin off its software business soon.

“I think it’s in the near future, and I think it’s a potential catalyst for the stock, as it should unlock shareholder value” – Analyst, Derrick Wood

Looking forward, CDC Corp expects revenue in 2007 to show a 37% increase to a range of $415m to $420m, well above the guidance of $401m to $411m it gave last November.

Our Recommendation: Buy shares of CHINA at or near $8.33. Place a 10% stop loss.

Good Investing…

Omni Energy Services (OMNI: NASDAQ) is a play that I had jumped into a very long time ago, one of my biggest gainers in fact.

So, I thought I’d take a second look at it and surprisingly enough, this play is on the verge of something big. The stock has been trading in an ascending wedge pattern so we’ll need to watch the $12/share area to see which was the seesaw goes. If there are any indicators that foreshadow what will come, it would be found in the MACD and DMI. In this case, both have turned positive and provide for an excellent opportunity to grab shares of a booming energy operation.

Our Recommendation: Buy shares of OMNI at or near $11.60 and place a 5% stop loss.

Good Investing…

Let’s see…energy prices are on the rise and look what comes up on the momentum radar. Newfield Exploration Company. This stock is currently setting up for a breakout from its consolidation, which us technical analysts would refer to in this case as a symmetrical triangle.

In the three-year weekly chart below you can see how the stock has made some pretty solid gains in the past. Now that things have cooled off quite a bit I believe it is an excellent time to buy in and get the most bang for your buck. Since the outlook is on a slightly longer time horizon I am asking you to be patient with this play. It may take some time to get the boat moving, but when it does you could easily see the stock run to roughly $75/share.

Our Recommendation: Buy shares of NFX at or near $48.30 and place a 5% stop loss.

Good Investing…

What a great weekend it has been for finding momentum plays. I am very excited about this play on all time frames. Not only do the technicals look great on the one-year weekly chart below, but on the 10-day hourly as well.

So, why on earth would I bother to mention the 10-day hourly part?

Well, this just proves what an opportune time it is to jump into MGLN. In most of my plays there may be a brief period of waiting before the stock begins to really move. Not in this case. I fully expect to see Magellan’s stock to appreciate in price right from the very start. This means that Monday morning you should be warming up that trigger finger of yours to buy shares at the opening bell.

Our Recommendation: Buy shares of MGLN at or near $44.90 and place the usual 5% stop loss to reduce any downside risk.

I know it’s been some time, but there is finally a new momentum play to call your own and this little lady’s name is FLOW. Take a look at the two-year weekly chart below. You’ll see that I have plotted the upper resistance points as well as the upside down head and shoulders pattern. This pattern symbolizes a bullish attitude so look for a breakout very soon. Snap up shares quickly because once the explosion from consolidation occurs there will be little time to buy in at bargain prices. Better not to get caught with your pants down on this market mover.

Our Recommendation: Buy share of FLOW at or near $12.46. As always, do not forget to place a 5% stop loss below your purchase price.

Good Investing…

If you have not liquidated your position in Quality Systems Inc (QSII) you may want to think about doing so. This is a heartbreaking sell because the technical setup is still very attractive. However, the overall strategy was to not lose more than 5% on any given stock and there is no room to second-guess or doubt my judgment. The Jutia Portfolio bit the loss and is moving on. Cash is king in a weak market and we will wait for better opportunities to arise.

Mobile Mini is my next momentum stock. Take it or leave it, but here’s my argument for why you need to get into this stock TODAY!

In the two-year weekly chart below you can see that the stock has been trading in a slightly downward consolidation pattern, similar to a wedge. Before you get your mind rapped around the word “downward” let me say that the overall trend is up and that the recent pullback is an excellent opportunity to jump in at a discount price. In February of 2007 the stock tested its major support that was originally broken back in February of 2006. Buyers stepped in and said with conviction that there is no reason why this stock should trade below $25/share.

Expect to see pressure building around the $28 area with perhaps a few more weeks of consolidation before the rally begins. However, I would not risk waiting a second longer. The MACD and DMI indicators just broke through to the buy side and signal that the momentum is very strong with this play.

Our Recommendation: Buy an initial block of MINI stock today at $28.64. Once the stock breaks out above $29/share you should then purchase your next block. As always do not forget to place your 5-10% stop loss.

Good Investing…

Merck & Co. shares jumped 7%, hitting a 52-week high Friday, after the company raised its earnings outlook and said a federal judge had dismissed a class-action suit over disclosures related to its pain reliever Vioxx. (Source: Wall Street Journal Online)

The stock shot up $3.84 alone so far today, equating to an 8.28% gain. Overall, I am up about 14% and I strongly recommend that you take half of the profits off the table due to the fact that the recent price movement is classified as a “gap” and may fill over the next few weeks.

For those of you who missed the boat, I promise we’ll swing for the fences on my next investment idea.

Good Investing…

Denbury Resources Inc. (DNR: NYSE) is my next great momentum stock play. First let me tell you a little bit about what makes this play special. Above all, the stock is in a strong uptrend and has been in a slightly downward consolidation period, forming a tight head and shoulders pattern. Major support has already been tested three times at the $26/share level and is finally poised for a quick surge upward. In this two-year weekly chart you can see evidence of just how quickly this stock can rise, shooting from $14 to $24 in two months’ time and then from $24 to $36 in about three and a half months.

The MACD and DMI indicators below the graph have both recently signaled that we are in the middle of an enormous buying opportunity at ground levels. The dust has settled my friends and now is the time to get in at bargain prices. Look for a breakout above $30 and don’t look back.

Our Recommendation: Buy shares of DNR at or near $29.92 and place a 5% stop loss below your purchase price.

Fellow investors and readers, the next great opportunity in this market can be found in Bookdale Senior Living Inc. On the one-year weekly chart below you will notice that the stock has been trending sideways for quite some time. However, in the past two weeks shares of BKD have broken the upside barrier and are starting to move.

NOW is the time to get in at the right price. The MACD indicator is now showing a buy and the DMI has already given the thumbs up. Historically this security has proven its support at each progressive stage up the current uptrend. Enjoy the ride and make some money. I will keep you posted in regards to the appropriate exit point, but be sure to place the recommended stop in the rare event that unforeseen circumstances derail the technicals. I am 99% confident that you will not be disappointed in my pick and hope to hear your success stories soon!

Our Recommendation: Buy shares of BKD at or near $49.67 and place a 5% stop loss below your purchase price.

Good Investing…

You might be thinking, wasn’t this stock already mentioned before? The answer is YES. I was reading up on my friend CalTrader’s blog when I noticed this familiar symbol. Out of curiosity I thought, “Mmm…I wonder how that security is doing these days.” Sure enough, the stock was perfectly positioned for a solid trade.

This little deja vous came as the stock lost momentum, forcing us to liquidate, then roaring right back. So what is the difference this time around? Not only are the MACD and DMI currently showing a buy, but the stock is currently breaking out from a long-term symmetrical triangle pattern.

At this point if you are still stuck on the sidelines with those lousy large caps you should probably sell and free up some cash…

NOW IS THE TIME TO BUY Titanium Metals Corp (NYSE:TIE)

I am extremely bullish on this stock due to the breakout and indicators mentioned above. In the past few years this stock has climbed from $5.00 all the way to $45/share. Based on my experience I can see the breakout running to at least $60/share in a 12-18 month investment time horizon.

Our Recommendation: Buy shares of Titanium Metals (TIE) at or near $35.35 and place your stop loss 5% below your purchase price.

Good Investing…

The Stock Market Reveals a Golden Opportunity

Manulife Financial Corporation (MFC:NYSE) is another great find. Third momentum stock found this week is a charm. Ok, time to dive right into the good stuff. As you may recall from my earlier posts it is crucial to look at the overall picture first and then dissect the stock as to determine the proper timing of the trade.

In this two-year weekly chart of MFC I see an expansionary period that propelled the stock from $23 to $33/share. Then, sometime around March of ‘06 the stock rolled over into a consolidation phase. Each consolidation period I have marked with black lines. In the ones marked by horizontal lines, the security merely bounced up and down, but notice in the middle of the chart how the stock formed a common symmetrical triangle pattern. This type of basing is expected and healthy if the long-term upward trend is to remain in tact and found validated by the bulls who prop their stock to such lofty heights.

Well, towards the end of the chart you will notice that the stock is once again heading into an expansionary period. From the MACD and DMI indicators below, both signaling a buy within the past week, I have strong reason to believe that this is the right time to get in.

Our Recommendation: Buy shares of MFC at or near $34.77 and place your stop loss 5% below your purchase price.

Good Investing…

The company’s retail drug stores have a long history of serving the health and well being needs of customers through customer-oriented pharmacy services and convenient product offerings that focus on health and wellness, beauty and convenience.

Longs Drug Stores Stock Technical Analysis

Longs Drug Stores (LDG:NYSE) is a stock primarily defined in the past year by its trading range between $38-$48/share. This consolidation cycle has been wound up tighter than a spring and is ready to pop! Right now the stock is hovering near the upper side resistance line (drawn in black) and may trade sideways for another few weeks before breaking out. Now is the time to jump in at lower prices before the ship sails away.

Why am I so confident in a breakout?

Ask yourself what was the trend before consolidation (trading in a sideways fashion)? In this case, the stock had rocketed from $18 all the way up to almost $50/share! If the stock were to roll over, the retreat would have been a wild ride down just as fast as the stock had originally risen. However, the sideways pattern would indicate that investors have something more “bullish” in mind.

Next, just look at the indicators. The DMI turned positive a long time ago, but the MACD just recently diverged into bullish territory (circled in green).

Finally, once you realize that you have all the tools necessary…Pull the Trigger and place your stops just in case sudden “shocks” knock the stock off course (negative earnings surprise, lawsuit, other negative reporting/news, change in management, regulatory impact, etc.).

Our Recommendation: Buy half of your position now in Longs Stores at or near $45.61 and place your stop loss 5% below your purchase price. On confirmation of breakout, purchase the remaining shares just above $46/share.

Good Investing…

International Paper (IP:NYSE) is my new favorite play. Not only am I getting a buy signal on the MACD and DMI indicators, but this security is just beginning to break out of a 9-month symmetrical triangle candlestick pattern! That is quite some time to be consolidating.

Now it appears as though the bulls have taken control. I am anticipating a jump up into the low $40s range sometime within the next 4-8 months. In my opinion that’s a decent return for a minimal amount of risk.

Our Recommendation: buy shares of International Paper (IP) at or near $35.86 and place a 5% stop loss below your purchase price.

Now that you know what Amtech does it is time to find out why this little gem is being added to the Jutia Portfolio. First, let me direct you to the chart. Here I would like you to look at the volume. It may be a little hard to see but it is those thin little black and red bars just below the price. You will notice that recently there was a big black volume bar, indicating that there was heavy buying (accumulation) of shares. If this buying were to occur at the end up an uptrend you would be worried about the stock losing its ability to maintain upward momentum. However, in this case the buying occurred at the end of consolidation, meaning that the party is just getting started.

Next, let’s analyze this trendline I have drawn. The price above this line is defined by a Japanese Candlestick Pattern known as Head & Shoulders because a left shoulder forms along with the head and right shoulder. When you see this pattern in its final stages of development you should pay close attention to the neckline that cuts right beneath both shoulders. If the price collapses below this line, all bets are off and you should liquidate your position immediately. In the event that the price stays firmly above the neckline then it is highly likely that you will see a strong breakout to the upside.

So now that both the recent volume and candlestick formation have wet the appetite, it is important to get a sense of just how strong the momentum really is and whether or not the stock will hold up and head higher. Here is where the MACD and DMI factor kick in. I have circled both the MACD and DMI in green on the chart exactly where a buy signal is given. As long as the signal was given within the past two weeks you should be alright. Remember that we are looking to capture the “sweet spot” in any trend, NOT the bottom or top.

Those are the high-risk investment areas…

With the MACD I am looking for the black line to cross above the red line. In regards to the DMI, I am looking for the green line to rise above the red. When both of these indicators say to buy together it is a no brainer, as long as the signal was given recently and not long ago. If the signal was given quite some time ago in the past you can be assured that the stock has already risen to far to catch any decent profits with low risk.

Our Recommendation: Buy share of ASYS at or near $7.90 and place a 5% stop loss below your purchasing price.

Good Investing…

Thor Industries (NYSE: THO) produces and sells a range of recreation vehicles and small and mid-size buses in the United States and Canada. It has three reportable segments: towable recreation vehicles, motorized recreation vehicles, and buses. (Source: Bigcharts)

For most of 2006 this stock has been beaten up badly. The stock rocketed up to $56 only to be knocked all the way to $40 near October. I drew a downtrend line for you to show how the stock tried to break to the upper resistance multiple times before finally cracking the ceiling during the winter rally months between November and December. Now it appears as though the stock is once again ready to run after successful consolidation and big run this week. The MACD and DMI indicators are holding strong and you should have no reason to believe the momentum will end soon. Let’s kick this new year off right, roll up your sleeves and get ready to make some money!

Our Recommendation: Buy shares of THO at or near $46.17 and place your stop loss at $41.50 or 5% below your purchase price.

My next momentum play for you today is an inter-dealer broker specializing in over-the-counter derivatives products and related securities. The Company provides brokerage services and data and analytics products to institutional clients in markets for a range of credit, financial, equity and commodity instruments. It functions as an intermediary on behalf of its brokerage clients by matching their trading needs with counterparties having reciprocal interests. GFI focuses on the more complex, and often less liquid, markets for sophisticated financial instruments, primarily over-the-counter derivatives that offer an opportunity for strong growth per transaction than the markets for more standardized financial instruments. (Source: Bigcharts)

About two years ago GFIG went public in the mid 20s and has appreciated significantly ever since. However, the stock has rolled sideways since February 2006 and is poised to breakout from consolidation and begin the next leg up in this uptrend. The MACD and DMI indicators are giving you the thumbs up and the risk/reward ratio is very favorable.

(Source: Bigcharts)

Our Recommendation: Buy shares of GFI at or near $62.26 and place your stop loss 5% below your purchase price. Look to add to your position when the stock breaks through major resistance near $65/share.

Good Investing…