With so many cyclical stocks having had huge runs
for the last year or more, I am looking more for stocks in non cyclical sectors, or stocks that have been oversold for some reason, but are still growing. At present I'm in PRAH, which is a high quality fast grower in the medical lab/research sector, and has a beautiful max chart. I believe the company will continue to surprise to the upside, and with 22% growth expected for 2018 vs 2017, and in the strong sector they're in, I believe the stock easily has 20% short term upside.
Another one is USCR, which also has a beautiful max chart. USCR is supposed to post $5 next year vs $3.45 this year, so a 45% increase. I believe the stock should recieve a 20 PE, and have a $100 price targe
Another interesting play is AAOI, which was my largest dollar gainer of the last 4 years on the way from $35 to $97 last year. I am now back in at $34.70, as I believe it's been way oversold. Also with no preliminary guidance bad or good this qtr for the first time in 5 qtrs, the thought is that they'll meet their $.89 avg guidance for the Dec qtr. My thought is, the short interest, which was around 80% a few months ago, and is 56% now will increase their rate of covering between now and Feb 21 when they announce the Dec qtr. If I were short, I surely wouldn't want to risk it into a report that could send the stock easily back to $50+ from $35, with any good news ! This especially after the CEO said on the last CC that they are in talks with Amazon for their 100G product, and will announce more news in the first qtr(which we are now in). That lack of preliminary announcement in my view was a huge positive- time will tell.
