Credit: Shutterstock photo
SoTM Bull's Eye Report - Today's Most Compelling Buy
Thursday, July 25, 2013
At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.
Company
Symbol
Industry
Stock
Rating
YTD
% Gain S.T.
Stop
Loss Clearwater Paper CorpCLW Paper Products 7.0 +23.67% .85
Why We Like The Stock:
Clearwater Paper Corp (CLW) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Paper Products stocks have had a strong year, as evidenced in charts like KapStone Paper and Packaging (KS), Shweitzer-Mauduit Intl (SWM), and CLW. CLW is a more modest gainer, which makes it a relatively less risky pick. The stock has been trending higher since June of 2012, with sizable pullbacks along the way. After hitting highs around in late March, CLW had a dismal month of April, falling down to the area by the end of the month. Since then, we've seen some buyers step in. Currently, CLW is sitting on top of its major short-term moving averages, operating well above the 50-dma. It has had trouble breaking above the price, though we'd be buyers here to play a break above, as the next logical step would be . Considering this stock isn't particularly volatile, we'd give it some wiggle room with a stop at .85 to see if it can push north of .We Would Be Buyers:
At the current price (~.57).
Clearwater Paper Corporation is a producer of private label tissue and paperboard products. The Company manufactures consumer tissue, away-from-home tissue (AFH), parent rolls machine-glazed tissue, bleached paperboard and pulp at 15 manufacturing locations in the United States and Canada. Its products are primarily pulp-based and manufactured in the United States and Canada. It operates in two segments: Consumer Products segment and Pulp and Paperboard segment. Its private label tissue products, such as facial and bath tissue and napkins, are used at-home and are sold to retailers and wholesale distributors. These include grocery, drug, mass merchants and discount stores. Its paperboard is sold in the packaging industry and is ultimately used by the customers to make packaging for products ranging from liquids to pharmaceuticals to consumer goods packaging. In December 2012, it acquired the assets of a wood chipping facility located in Clarkston, Washington, near its Lewiston, Idaho.
Stock Rating:
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.
Disclosure:
At the time of publication the editor and affiliated companies own the following positions: None
Note: Positions may be bought or sold while this publication is in circulation without notice.
Clearwater Paper Corp - Last 3 Months
Clearwater Paper Corp - Last 12 Months
Clearwater Paper Corp - Last 5 Years
The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.
Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.
Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
