Young Guns – 2-9-13

Bonanza Creek Energy Inc (BCEI)

My Young Guns Screen for leading stocks with IPO dates from 2008 to now returned 11 stocks with positive gains this week. Here are the five best performers:

Bonanza Creek Energy Inc (BCEI)

BCEI was up 13.5% this week on volume that was 47% above average. The stock put in big gains in heavy volume on both Monday and Tuesday, then held those gains on Wednesday and Thursday, and then added a bit more to those gains in slightly below average volume. The stock is well extended from the cup it broke out of in December.

BCEI has been driven by its incredibly strong earnings reports. In the past three quarters, the company has reported earnings growth of 211%, 158%, and 363% and sales growth of 133%, 113%, and 125%. The company has a pretty weak return on equity of 2% and is in a poorly performing industry group, but has increased fund ownership in each of the past four quarters.

 

C V R Refining LP (CVRR)

CVRR only has four weeks of trading history, but has increased in each of those four weeks. It was up 9.9% this week. Most of those gains came on Thursday and Friday. Since there are only four weekly bars to look at, we can’t really determine a pattern yet, but this appears to be a strong stock worth paying attention to.

In its most recent quarter, CVRR reported earnings growth of 104% and sales growth of 82%. Earnings growth was negative in the previous two quarters, but the four quarters before that were all in the high triple digits. The stock is also in an industry group that is currently looking very strong.

HomeStreet Inc (HMST)

HMST was up 10.6% this week on volume that was 65% above average. After closing at the lows of the day on Monday, the stock picked up speed on Tuesday and Wednesday, held those gains on Thursday, and shot up to a new high on Friday. The stock broke out of a second stage flat base a few weeks ago, then pulled back to its 10 week line the following week. This high volume bounce off of the 10 week line is a very positive sign.

In its most recent quarter, HMST reported earnings growth of 100% and sales growth of 98%. Earnings growth has been in the triple digits for six of the past seven quarters. Annual earnings showed very strong growth in 2012, but are projected to fall in 2013. The stock has increased fund ownership in each of the past four quarters, but its industry group is ranked slightly below our threshold.

China Lodging Group Ads (HTHT)

HTHT was up 4.7% this week on volume that was 15% below average. The stock was up slightly on Monday, then put in big gains on Tuesday and Wednesday and retraced a bit on Thursday and Friday. It broke out of a first stage consolidation in early January and is currently sitting above the acceptable buying range.

In its most recent quarter, HTHT reported earnings growth of 68% and sales growth of 46%. Annual earnings are projected to grow 52% in 2012 and another 40% in 2013. One the negative side, the stock’s return on equity is 6%, fund ownership hasn’t increased much in the past year, and it is in a poorly performing industry group.

Linkedin Corp (LNKD)

LNKD rocked your socks this week jumping 21.5% on volume that was 156% above average. Almost all of that gain came when the stock gapped up 21.3% on Friday in volume that was 648% greater than average and closed at the top of the day’s range. This big jump took the stock from just above its first stage cup with handle base to well extended.

In its most recent quarter, LNKD reported earnings growth of 192% and sales growth of 81%. 2012 was the company’s fourth straight year of reporting annual earnings growth. Annual earnings are expected to grow another 44% in 2013. The company has doubled fund ownership in the past year.