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Mascoutah, Illinois | If anyone is looking for stock plays I will offer up the following two recommendations.
1. Gilead Sciences: Symbol GILD
The stock got hammered down four straight points after some negative data on one of their future drugs.
Here is how the trade sets up. The stock made a recent low of $42.31 on October 29. The stock sold off today and traded down to $42.95 on four times normal volume. I would be a buyer of the stock after it closed today around $43.15 and bounced off of its lows. My six month target on the stock is $50.00. This is not a fast money play but more of a slow churning one. If this stock closes below $42.25 GET OUT AND DO NOT LOOK BACK. Your risk reward in this play is $1.00 to the downside and approximately $7.00 to the upside. FULL DISCLOSURE: I BOUGHT GILD ON OCTOBER 29, 2009.
2. Nvidia: Symbol NVDA
The stock rocketed up today on more news that was negative towards Intel (INTC). The stock closed today around $16.90. I would not rush out and buy this stock until it gets under $16.50 and I would prefer to buy it closer to $16.00. The stock made a 52 week high on September 15 @ $16.58. The stock put in a double top on December 7 @ $16.45. I believe the stock could fall beneath both of these levels where I would be an aggressive buyer. My opinion is the stock should reach $21.00 in the next six months and my 12 month target is $25.00. If this stock closes below $15.20 GET OUT AND DO NOT LOOK BACK. FULL DISCLOSURE: I sold NVDA on December 7 and I am now looking to get back in under $16.50 and preferably closer to $16.00. Your short term risk is $1.00 to the downside and $4.50 to the upside. Longer term (12 months) your upside could be $8.50. | |
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Anyone looking for stock plays? GILD and NVDA
