Kapitall Strategies: Top 10 Winners With Rally Potential

(List compiled by Eben Esterhuizen, CFA)

Strategy: If a stock gains more than 3% since the previous close, buy it, and sell it on the close 10 trading sessions later.

But which of today’s big winners might be good candidates for this strategy?

To help you get ideas, we started with a universe of about 200 stocks that have gained by more than 3% since yesterday’s close (i.e. strategy candidates).

We went back in time, and evaluated how many times these stocks have rallied like this over the last quarter.

For each backtested rally strategy, we’ll also report the average return made on the investment (ignoring transaction costs).

Recent history suggests that these stocks are exhibiting upward momentum, and may add to today’s gains. That said, it’s important to point out that past performance is no guarantee of future results.

In other words, just because these stocks gained from similar rallies over the last quarter, there is no guarantee that they will do so again today.

As always, use this list only as a starting point for your own analysis.

For each stock listed, we’ll also include the annual performance.

analyse These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. visualise annual returns for all stocks mentioned

1. OceanFreight, Inc. (OCNF): Shipping Industry. At time of writing (2:10pm ET), the stock is up 3.51% since yesterday’s close. Over the last quarter, there have been 15 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 35.64% over the next 10 trading days. The stock has returned -21.2% over the last year.

2. Pharmacyclics Inc. (PCYC): Drug Manufacturers – Other Industry. At time of writing (2:10pm ET), the stock is up 3.63% since yesterday’s close. Over the last quarter, there have been 13 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 10.3% over the next 10 trading days. The stock has returned 65.59% over the last year.

3. Vitacost.com, Inc. (VITC): catalogue & Mail Order Houses Industry. At time of writing (2:10pm ET), the stock is up 3.3% since yesterday’s close. Over the last quarter, there have been 10 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 7.55% over the next 10 trading days. The stock has returned -27.2% over the last year.

4. Minefinders Corp. Ltd. (MFN): Industrial Metals & Minerals Industry. At time of writing (2:10pm ET), the stock is up 4.03% since yesterday’s close. Over the last quarter, there have been 7 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 7.36% over the next 10 trading days. The stock has returned 69.79% over the last year.

5. New Gold, Inc. (NGD): Nonmetallic Mineral Mining Industry. At time of writing (2:10pm ET), the stock is up 5.04% since yesterday’s close. Over the last quarter, there have been 12 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 7.19% over the next 10 trading days. The stock has returned 102.34% over the last year.

6. Jaguar Mining Inc. (JAG): Gold Industry. At time of writing (2:10pm ET), the stock is up 6.66% since yesterday’s close. Over the last quarter, there have been 10 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 6.74% over the next 10 trading days. The stock has returned -1.01% over the last year.

7. Avino Silver & Gold Mines Ltd. (ASM): Industrial Metals & Minerals Industry. At time of writing (2:10pm ET), the stock is up 6.81% since yesterday’s close. Over the last quarter, there have been 11 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 6.48% over the next 10 trading days. The stock has returned 237.18% over the last year.

8. Breeze-Eastern Corporation (BZC): Aerospace/defence Products & Services Industry. At time of writing (2:10pm ET), the stock is up 6.1% since yesterday’s close. Over the last quarter, there have been 7 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 6.3% over the next 10 trading days. The stock has returned 61.27% over the last year.

9. Gold Reserve Inc. (GRZ): Gold Industry. At time of writing (2:10pm ET), the stock is up 3.4% since yesterday’s close. Over the last quarter, there have been 13 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 6.13% over the next 10 trading days. The stock has returned 184.95% over the last year.

10. International Tower Hill Mines Ltd. (THM): Gold Industry. At time of writing (2:10pm ET), the stock is up 3.25% since yesterday’s close. Over the last quarter, there have been 8 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 5.34% over the next 10 trading days. The stock has returned 25.59% over the last year.

Interactive Chart: Press Play to see how analyst ratings have changed for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.


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