Tuesday, February 19, 2013

4 stocks with strong fundamentals and technicals

For those who would very much prefer to buy rather than short, I am recommending 4 stocks to hold for the medium term (about 6 months).  They have strong fundamentals and their prices are making higher highs nicely.
Boustead is now making 3 year highs.  I know, most people will say "how to buy when the price is so high".  That is precisely the point.  I was a poor trader in the past, trying to buy low sell high.  Most of the time now, I buy high, and sell higher.

The 3 other stocks (other than those I have recommended in the past year) that are strong in both fundamentals and technicals are:
  1. Great Eastern Holdings
  2. Dairy Farm
  3. CWT
These 4 stocks have 2 things in common : they are making 3 year highs, and they are fundamentally safe, and undervalued stocks.  If you think we are in a bullish market, you should buy them.

My recommendation is that these stocks are definitely worth buying, but buying right now is risky.  The market timing is not optimum.  Waiting for the correction to be over before buying is more prudent.  Of course, with high risk comes higher rewards.

Here are their charts, note that the prices are making higher highs.




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