Hi Reid,
Here's the chart of one of these on your list, PPG.
At first glance, you can see that PPG is in a long-term uptrend, but the longer-term chart suggests more correction is possible in the next few weeks:
139.142.147.218
However, when you set the regression channel to the medium term trend that began with a breakout from a trading range about 6 months ago or so, you see a different picture:
139.142.147.218
PPG is oversold, and the 15-5-5 stochastic is in the buy zone:
139.142.147.218
The faster stochastic setting together with Williams and the most recent candle makes PPG a buy, using early but not quite confirmed technical signals:
139.142.147.218
But here is the major selling point, IMHO: notice that PPG price movement has not correlated well with the market over rather extended periods, and that it tends to outperform the market but in orderly fashion, and that in particular PPG tends to keep right on going through general market corrections:
stockcharts.com[w,a]daclyyay[dd][p][vc60]&pref=G
And finally, PPG valuations are surprisingly reasonable----forward P/E of only about 18. The volatility is low (beta 0.8), and they do have a lot of debt.
finance.yahoo.com
I'd say the downside risk here is reasonably low, and one could make a good case for buying this stock right here for either a short-term or medium-term hold. Might be a bit more downside in the next several sessions, but patience should be well rewarded. Might be a nice hedge (sort of) if one has a portfolio of high volatility trading stocks that are mostly Nasdaq stocks and mostly correlated with the $NDX (that would be me!).
T |
