Sell in May and Go Away?

The week of May 11th is going to be an interesting week. The stock market has been screaming hot since it’s low of 6,443 on March 6th, 2009. For the last couple of weeks, many analysts have been calling for a pullback and it just hasn’t happened. Well we’re going to go out on a limb and make our own call. Starting early to mid week, we expect to see the stock market have a pullback heading into options expiration on Friday May 15th. This is typically the start of the term “Sell in May and Go Away.” This may be the perfect opportunity for the bears to fight back as they have been on the losing side for quite some time. Stocks doesn’t go in the same direction forever. Expect some profit taking next week. Or we could be wrong and the rally continues on forever! We’ll find out on the 15th of May.

At this stage we expect to hold on to most of our securities and may consider selling a few stocks in the portfolio if there is any significant action early next week.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.

BAC - Bank of America - UpDATED

We are closing our BAC position at $14.55. The run from our initial entry price of $10.25 on April 17th has been great. The shares may continue to rise but it has hit our price target of $15. We may return to this stock if conditions present itself. Those that followed our recommendations, we congratulate you! Nice two week profit of over 40%!!!!

AMR - American Airlines Inc.

[AMR] American Airlines Inc. - Hot Stocks to Buy Entry Price $5.75 - $6.25

• Risk level: 6
• Profit potential: 9
• Price Target 6 months: $11 - $12
• Price Target 12 months: $16 - $18
• We expect AMR to outperform the market in the short and long term.

AMR Corp, owns and operates in the airline industry.  Through American Airlines Inc., AMR provides scheduled jet service to approximately 150 destinations throughout North America, South Ameria, Europe and Asia.  AMR also owns AMR Eagle Holding Corp, which operates two regional airlines that provides service throughout North America.

The airline industry has been decimated by many factors ranging from the economy, oil’s onetime $150 price to the recent swine flu outbreak in Mexico.  We feel that all the negative news for the airline sector has reached it’s peak and the bleeding of the stock price should be coming to an end.  AMR’s stock fell from it’s Jan. 8th, 2009 price of $12.29 to a recent 52 week low of $2.40 on March 6th.  Since then it has more than doubled in price over the last month and a half.  We feel the recovery in AMR and airline stocks is still in the early stages and expect the stocks to continue moving higher.  We list a few highlights as to why we have added AMR to our Hot Stocks to Buy list.

Swine flu pandemic is turning out to be a bust and consumers will begin to travel again

Travel loads shows signs of improvement as April’s travel data shows fuller planes (MarketWatch)

Increases in miscellaneous fees and additional services (Expected addition of Wi-Fi service in the near future (Wall Street Journal) will add to the bottom line

Oil’s recent price increases are showing very little effect on AMR’s stock price

Summer travel months are approaching

Possible buyout canidate as consolidation in the industry continues

In our opinion the risk level for AMR is moderate with high growth potential.  A  medium size holding would be appropriate for AMR stock.  A good entry price for AMR is anything below $6.5 in the near term.  The stock may continue to fall another 5% in the short term.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.

GERN - Geron Corp. - Updated

5/05/2009 Very Unusual price and volume increase on shares of GERN. Very bullish signal that there is a news leak not yet known to the general public. Strong buy signal.

[GERN] Geron Corp. - Hot Stocks to Buy entry price $5.10

• Risk level: 7
• Profit potential: 9
• Price Target = $11
• Geron is a medium risk stock with maximum profitability
  • Geron is the known leader in stem cell research and is the biggest
  • Geron and other stemcell companies did not participate in the recent runup by financials and every other market industry
  • Geron was oversold
  • Secondary offering was at 6.6 - 6.85 meaning the large investors putting money into the secondary must have a strong belief that the technology works and are willing to gamble at such a premium price

Today we examine a stock that we feel is worthy to be added to our Hot Stocks to Buy list. The first hot stock is GERN (Geron):


We are recommending GERN for a few reasons. The first reason is that we feel it’s been oversold from it’s high of above $8 a share in early January. The main factor for a selloff was due to a secondary offering that was made on Feb. 12th, 2009. The secondary was for 7.25 million shares at a price range of $6.60 - $6.85. This secondary offering plus an article from TheStreet.com’s columnist Adam Feuerstein encouraging share holders to sell the stock, pushed the stock from above $8 to under $4.5 in just a few days. These two reasons may be valid for a 10 to 15% point decrease but definitely not a 50% hair cut.

Reasons GERN is added to Hot Stocks to Buy

The entry price that we have started on this stock is $5.10. We are looking for at least a 125% gain on this stock in the near term (within 6 months). Any entry below $6 is recommended in the near term.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.

DNDN - Dendreon Corp. - Updated

Original Upgrade to Hot Buy on 4/18/09.
[DNDN] Dendreon stock - Hot stocks to buy entry price: $17 - $18.5 Updated to $21 - $24 04/28/09

• Risk level: 9
• Profit potential: 10
• Price Target = $50
• Very risky in the near term, keep an eye on April 28th 2:20pm (CT)

Data from IMPACT trails are successful we are upgrading DNDN to a Super Hot Buy. Price target in the short term is now $60 and long term is now set to $150 (Possible stock split by Mid Summer.)

On April the 16th we added Dendreon Corp. (DNDN) to our hot stocks to buy portfolio at the price of $18.15. Below you will see a few pointers as to why we have chosen to add Dendreon to our list of Hot Stock to buy. We’ve followed this stock for years and feel this is a great time to enter into the stock for those who have missed the previous purchase price of below $5. The recent news on Dendreon’s IMPACT results is just what the company needed and if the details on the news is as expected, this stock can see a rise to above $35 in the short term. Please also consider the risk that if Dendreon’s news on the 14th of April is revealed to be misleading, this stock can take a massive plunge back to below $5.

• Upgraded to from Sell to HOLD by Rodman & Renshaw on April 14th, 2009
• Upgraded by from Mkt Perform to Mkt Outperform by Brean Murray on April 16th, 2009
• Potential buyout candidate by big pharma (possibly Merck)
• On April 14th Dendreon issued a press release announcing that the pivotal Phase 3 IMPACT study of Provenge in men with advanced prostate cancer met its primary endpoint of improving overall survival compared to placebo control.
• On April 28th (2:20pm CT)the results from the IMPACT studies will be presented during a plenary session at the American Urological Association’s Annual Meeting
• Dendreon’s other drug Neuvenge is on the horizon

Hot Stock to Buy recommends taking a small holding in Dendreon and increasing the holding on any non news related dips in the next week. Dendreon is an extremely high risk stock with high potential in the near term. Price target within 6 months is $50.

MGM - MGM Mirage

[MGM] MGM Mirage - Hot Stocks to Buy Entry Price $7.90

• Risk level: 6
• Profit potential: 9
• Price Target 6 months: $14 - $16
• Price Target 12 months: $28 - $30
• We expect MGM to outperform in the near and long term

MGM Mirage, through its subsidiaries, owns and operates casino resorts in the United States. The company’s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club.

We have selected MGM Mirage as a hot stock to buy canidate due to the potential profit it represents in both the short and long term. With the recent turnaround in the overall stock market and gaming market, MGM is poised for continued price increase. The following highlights are reasons we have selected MGM Mirage as a hot stocks to buy stock.

• MGM Mirage will eventually see the CityCenter project come to a completion by December 2009 according to the latest Associated Press report “MGM Mirage and Dubai World each agreed to fund their remaining payments for CityCenter with letters of credit, and the lenders agreed to immediately fund $1.8 billion to finish the project, rather than wait until each partner had fully paid its share. The company said CityCenter is now on track to be open by December 2009, with the Harmon Hotel & Spa opening in 2010.”
• It looks like the bankruptcy rumors have subsided with the announcement of the CityCenter agreement with Dubai.
• According to Yahoo’s insider transaction report there has not been any recent insider selling into the recent stock runup from a low of $1.88 to it’s current price of $7.96.
• We expect increased travel to Las Vegas as an alternative option due to the recent swine flu scare. This is good for MGM and all other gaming casinos.
• Earnings on May 4th should be inline or better as estimates have been lowered.

Hot Stocks to Buy recommends taking a small holding in MGM stock at it’s current price.  The profit potential of the stock is great and the risk is moderate.  Overall MGM looks like a hot buy anywhere beloww $10.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.

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