Van Meerten's picks

Every week I'd like to share 2 new long ideas and 2 new short ideas. I will use BarChart.com to find ideas that you can use and maybe you pick up some spare change.

This weeks long ideas are:

EBS Emergent Biosolutions - this company has made 21 new highs in the last 65 trading session and is presently up 65% for that period. They are a biomedical company that specializes in vaccines. At the present time they claim to be the only FDA approved provider of Anthrax vaccines. Place a stop loss at 15 to protect against this roller coaster market.

AFAM Almost Family Inc - An leading owner of adult day care centers that provides pickup and delivery of your aged loved ones. They have made 9 new highs in the last 65 trading session and since they are up over 75% for that period you'd better use a stop loss at 40 for protection.

There are so many short positions screaming at me that its hard to decide but I did pick 2:

HTCH Hutchinson Technologies is a leading provider of products that are produced using chemical, mechanical and electronic technologies. I think they will have a hard time for the next quarter and the market thinks so too. They have sunk to 34 new lows in the last 65 days and right now is down 72% for the period. With a recent bounce they have had I'd put a pretty tight stop to cover at around 8 on this one.

DIOD Diodes Inc is my other short for the week. With 30 new lows for the 65 day period and down almost 76% they seem to be fading. They are a leading provider of semi conductor products and that whole industry look like it will take it on the chin for another quarter. Put a 15 stop loss on this for protection also.

Please give me your honest feedback and keep me honest if these stock don't pan out.

Jim Van Meerten
The Amateur Msn.com Strategy Lab

Contributor on:
MSN.com Money Central
Marketocracy.com
SeekingAlpha.com
InvestorPlacecom
MoneyShow.com

Comments: View Comments |  Sunday November 9, 2008  |  Stocks: AFAM, DIOD, EBS, HTCH,