Many folks don’t like Mondays – but I do.
I love taking my research from last week and putting it all to work as the markets reopen for a whole new week.
Because a whole new week is a whole new opportunity to make more money from stocks that are going to surge and surge big!
We’ve had a series of surging stocks over the past weeks. We’ve seen our stocks gain and gain big.
And a new week means new opportunities for gains from the stocks that made my cut as true surge stocks to buy.
To make my cut, these stocks had to make it through the gauntlet of my Stock Surge Indicator (SSI) system.
To get the full rundown on my SSI, please read my special free report: The Magic of the SSI.
But now, these stocks made the cut, and we are on our way to next Monday for more surge profits. To get the full rundown on these stocks, click here to access the Watch List and all the details.
Now on to my stocks that made the cut…
Horizon Therapeutics (HZNP)
Horizon Therapeutics (HZNP) is a biopharmaceutical company based in Lake Forest, Illinois. It specializes in both developing its own drugs as well as buying others in various stages of development and evaluation.
It focuses on pain relief and specialty drugs,particularly for orphan diseases. This combination attacks the market with both widespread demand and high margin drugs for specialized ailments.
Revenue growth is very good with the trailing year up by 69.3%. And while drug development and ushering them through approvals is expensive, it maintains a positive operating margin at an impressive 22.3%.
The company has a lot of cash on hand and has little debt, so its leverage is lower. This has an impact on the return on shareholder equity that is a little low at only 9.3%.
Insiders have 1.1% of outstanding shares as of July 4. And as of that date, there have been some additional shares bought adding some 26.2% of insider holdings.
- Surge score: 72/100
- % Above 52-wk low: 74.6%
- MFI reading: 59
- Sales growth: +49% TTM
- Triple momentum: YES
I added Horizon to the Watch List last week.
The breakout has not yet triggered, but the chart continues to tighten, and the setup looks really strong.
Volatility is decreasing, and pullbacks are becoming shallower – a sign that less supply is coming to market.
Decreased supply is a good thing. It means less people are offering shares for sale, so an increase in demand should trigger a more substantial price move higher.
The right side of the chart is very tight, and even with the selloff last week, shares only fell by 3%.
My entry and stop prices are the same.
I’m looking for a breakout above $97.05 as my trigger to buy.
If filled, I will be working a stop below the July low at $90.80.
Condor Hospitality (CDOR)
We have another company that is in the newly recovering market for hotels with Condor Hospitality (CDOR).
More and more folks are traveling again, particularly for leisure, and business travel will be returning. Hotels are a big part of the travel market.
I’m not focused on the flag companies of the major hotel brand companies. Instead, I’ve found a stealthier way into this market via a company that owns the actual hotel properties.
It is structured as a real estate investment trust (REIT) so it avoids traditional corporate income taxes and has some additional tax benefits for individual shareholders thanks to the Tax Cuts & Jobs Act of 2017 (TCJA).
The market has it ready for more gains with the recovery and resurgence in travel and hotel stays.
- Surge score: 94/100
- % Above 52-wk low: 180%
- MFI reading: 74
- Sales growth: -27%
- Triple momentum: YES
Condor’s sales were down in the first quarter, but it is easy to understand why.
The company owns a small portfolio of 15 hotels with 1,908 rooms across Texas and the Southeast United States.
Virus restrictions are just now loosening, and travel is finally beginning to pick back up. So, I expect a big jump in revenue when the company reports its numbers next month.
This was an $11 stock before the pandemic, so at six bucks a share, there is plenty of upside.
This is a micro-cap stock with low daily volume and a small float of just 7.9 million shares.
Any positive news or institutional participation could send shares soaring. But I need confirmation that the stock is in play before I get involved.
My entry trigger would be $6.55 with a sell stop at $5.85.
180 Degree Capital (TURN)
180 Degree Capital (TURN) is in one of the best businesses in the markets. It is because one of the best ways to make money in the stock market is being an asset or investment manager.
As a manager, you get paid on the assets under management (AUM). So, the more AUM on the books, the more fee income you’re paid.
Market goes up, down or nowhere – as long as your AUM is steady or up, your fees are steady to up.
I’ve found an investment management company that not only gets the benefit of fee income from AUM but also from its activism in forcing restructuring of targeted investments it makes in companies and their stocks. And it gets some additional fee incentives as part of its income stream.
It is an interesting and compelling asset management company, and the stock looks good in its trading set up.
- Surge score: 80/100
- % Above 52-wk low: 64.4%
- MFI reading: 60
- Sales growth: +242%
- Triple momentum: YES
TURN is another micro-cap stock like Condor.
The company has a market capitalization of just $82.7 million, and the float is small.
The short, medium and long-term trends all turned up at the start of the year.
The stock trended higher and then spiked in early May.
Price action has been extremely tight ever since, and trading has remained in a 3%-4% range on light volume.
A move above $8.25 on higher-than-average volume would trigger me to buy.
My stop would be at $7.80, representing a 5.4% risk on the trade.
Another Tip for Your Own Watch List
As I have been discussing in Traders Daily Direction, I am ramping up my insider stock buying research that is part of my Stock Surge Indicator (SSI).
Last week, I did a live coaching event that was all about insider buying and how it works to find stocks that are set to rally higher and stronger.
And next Wednesday, I’m hosting another live session… I’ll get you the invitation and RSVP information as it’s available.
I have developed a new product that we’ve recently launched here at Traders Agency called Insider Edge.
It’s all about one of my common-sense tools that finds stocks with big surges in the works that are tipped off by insiders’ buying their own shares.
To get the full rundown on how to profit by buying stocks that insiders are buying right now and learn more about my Insider Edge at Traders Agency, click here right now.