Haemonetics $HAE to be added to the @TradeIdeas HOLLY Hot List

April 30, 2018

From January 2013 to the fall of 2018, $HAE stock formed a base that digested a run which saw the stock nearly triple over the course of a decade. Now, a “triple” sounds lovely, but when it takes a decade to produce, it’s not overly exciting for those of us looking for growth stocks.

What is exciting is that those gains were achieved in a remarkably calm way. There were very few scary moments for long term investors around product launches or earnings dates — which is notable because we have earnings approaching next week. This healthcare company (providing hermatology products and solutions) just slowly and steadily plodded along it’s course to higher prices.

Well, this all changed in October 2018 when the stock broke above 5 year resistance and hasn’t looked back. The stock is already up 35% since January 1 and shows no signs of stopping. And last week, HOLLY noticed something under the hood that caught the attention of one of her algorithms. Solid multi-year base breakout, plus accelerating momentum, plus HOLLY participation is an equation I like. And its $4.2 Billion market cap offers plenty of capacity for any sized player.

We’ll be adding $HAE to the list at tomorrow’s opening price and we’ll trail it with a 20% stop loss from the highest price we see while holding. Size your positions accordingly.

HOLLY Hot List Portfolio Update

The portfolio has been led over the past 5 days by a notable return back towards highs for $FITB, a powerful continuation of trend by $HFC, and gains in $GDS and $NYT. Meanwhile, $FIVE and $NCLH have been the most notable laggards, and $CASA was a quick unprofitable roundtrip that we only got to hold for 7 days. Bummer.

 

 

If you’d like to learn how HOLLY, the Artificially Intelligent Virtual Analyst, can improve your trading and investing results, please visit Trade Ideas.

Good luck out there!

~ Sean McLaughlin (@chicagosean)