CNBC Million Dollar Portfolio Challenge - Monday, Week 4
[Scroll down for answers to today's Bonus Bucks trivia questions.]
Welcome to Week 4, Portfolio Challengers. This is your big chance to win that $30,000 Jamaican Getaway, so trade smart (though you've already burned one day of weekly performance with whatever allocation you had set up by 4 pm Friday).
For those of us volatiliphiles who like to play the earnings reporters, the cup runneth a bit dry this week as we enter the real nadir between earnings seasons. That said, the companies that do report off-cycle are frequently foreign-based, which means (to the extent they're contest eligible) there may be some less transparent, less well understood, less closely followed names out there. That spells potential for big swings in your portfolio.
For Monday, you've got 5 to pick from. I'd take an extra special look at the last 3 on the list (in bold green). These are each a bit radioactive, but just might have a nice one-day pop in store (based on the amount of analyst coverage, the difference between the high and consensus analyst estimates, recent revisions to those estimates, the stock's historical volatility, and the company's earnings surprise track record).
- ABM Industries (ABM)
- Layne Christensen (LAYN)
- Lululemon Athletica (LULU)
- NCI Building Systems (NCS)
- Toll Brothers (TOL)
Lululemon is a Canadian athletic apparel company that went public less than a year ago. It's got a decent amount of analyst coverage, but it's exceeded consensus estimates every quarter. NCI and Toll are in the non-residential and residential construction businesses, respectively. You can play both of these in the Portfolio Challenge with a clean conscience, even if you're agnostic or bearish on housing and construction in general. These are volatile stocks that have taken unholy pummelings and whose consensus estimates have been adjusted significantly downward in recent weeks and months (which means the bar for an upside surprise has been significantly lowered). And based on the last several quarters, the one thing you can be relatively assured about Toll Brothers is that its results will be some kind of surprise.
For all five of these names, one thing you'll want to look closely at is the Monday intraday move. You'll be buying at Monday's closing price, so an upward anticipatory jump could spoil your Tuesday upside, while a backslide could give you a little extra juice on your winners.
Along those same lines, since the field of eligible earners is so barren, you might want to peruse the gutter this afternoon for the daily losers that might rebound Tuesday (looks like HRS and ICOG might be candidates).
(Consider all of the above to be for entertainment purposes and not meant to be used as real-world investment recommendations. The goals and strategies of the Portfolio Challenge are not to be confused with those of sensible investing.)
See all related posts in the CNBC Portfolio Challenge archive:
- Week 3: Friday
- Week 3: Thursday
- Week 3: Wednesday
- Week 3: Tuesday
- Week 2: Friday
- Week 2: Thursday
- A New Fly In the Ointment
- Week 2: Wednesday
- Currency Trading Resumes
- Week 2: Tuesday
- Week 2: Monday
- More Technical Difficulties
- Prize Poll
- Week 1: Friday
- Week 1: Thursday
- The Airing Of Grievances
- Week 1: Wednesday
- Week 1: Tuesday
- Technical Difficulties, Orders Cancelled
- Week 1: Monday
- Week 0
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Monday June 2nd
Throughout the contest, each day's answers will be at the top of the CNBC Portfolio Challenge archive as soon as the questions are published, so bookmark accordingly.
Squawk Box: "Question: On Friday, Dow Chemical CEO Andrew Liveris said Dow uses how much of the U.S.' electricity to make its products?"
Squawk On the Street: "Question: Energy strategist John Kilduff used which social-psychology term in his oil blog "The End of Daze"?"
Answer: Herd mentality
The Call: "On May 28, homeland security analyst Brian Ruttenbur praised which firm for its fingerprint-verification tech?"
Power Lunch: "Question: On Friday, Rebecca Darst said options traders are looking at chips. What reason(s) did she cite?"
Answer: All of the above
Street Signs: "Question: Fast Money's Karen Finerman loves "bargain real estate." But what conclusion did she reach on Maguire Properties?"
Answer: She likes "the dynamic"
Closing Bell: "Question: CNBC Stock Blog: For 2008, Manny Weintraub scoffs at the "Sell in May, Stay Away" adage. Why?"
Answer: Lots of bargains
Weekly Bonus Quiz:
Question: A growth stock investor is primarily concerned with capital appreciation as opposed to:
Answer: Dividend payouts
Handcrafted by Flip on June 2, 2008 |
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