Friday April 27, 2012
by Bernie Schaeffer, editor Schaeffer's Investment ResearchOur stock selection process is based on a proprietary system known as 'expectational analysis' which uses a combination of fundamental, technical, and contrarian-based sentiment metrics. Here's two new buys in our master trading portfolio.
I initiated a long position in
United Rentals (
URI); price action on URI has been strong, with the equity up 51 percent year-to-date.
The shares recently pulled back to their 80-day moving average and bounced from that trend line.
This could provide support going forward. Despite its strength, sentiment toward URI remains very skeptical. Currently, 34 percent of its float is sold short. This creates the potential for a strong short-covering rally.
I also initiated a long position in
VeriFone Systems (
PAY); price action on PAY has been strong, with the equity up 49 percent year-to-date.
The shares recently pulled back to their 40-day moving average and bounced from that trend line. This could provide support going forward.
Despite its strength, sentiment toward PAY remains very skeptical. Currently, 11 percent of its float is sold short, and short interest has grown by 23 percent over the course of the past month. This creates the potential for a strong short-covering rally.
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