Three Potential Breakout Stocks
This market feels like it is setting up for a 2013 that will reward the buyers of some stocks that have been down and out or left for dead in a very big way, but not all those stocks. So, there will be many buyers left wanting and some left hurting. Therefore, when I look at very speculative longs, I am looking to buy a small group and spread out my risk rather than go with a single name. Three charts that came up over the weekend look attractive and have the potential for breakouts. I'm not going to paint a pretty picture of any of these names with their fundamentals. They all have huge challenges ahead, but I am buying two this morning.
Gannett (GCI) is by far the most attractive, and I bought it today at $19.35. Of the three names, GCI has the qualities I like most. There is a 4% dividend to provide income along the way, which could be used to hedge the position. There is a double-digit short interest to bring in a potential short squeeze. Most important, for me, is the chart looks strong. I have a 1% portfolio position, but I will increase that to 1.5% on a close above $19.75....344 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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