Year: 2011

BBD.B Bombardier

Hamilton

We liked this stock right at the low of $2.25 and sold at $5.70 (see previous blogs) mentioning that we liked the stock for the long-run as well and look at it again. I neglected to do that. Today the profits reported were 82% higher than last time and the company at long last seems to be firing on all cylinders. If you like “infrastructure”, this is as pure a play as you can get. Here are the charts;

bbd.b2011 bbd.b2 2011

The drop from $26 to $2 qualifies as a bear market. As the last leg down in 2008 is a very clear 5-waves (see previous blogs) and therefore probable a c wave, the best count is an a-b-c X a-b-c. From there a new bull market should start. If that is correct you are now in a third wave of the first upleg. This could and should ULTIMATELY lead to a new high years from now. In the mean time if wrong expect at least an a-b-c counter-trend move as we have seen so many of, which should still take us to about $8.

Below was the chart then, just a few days before hitting a low;

 BBD.B march 9

IMN, Inmet

Hamilton

imn 2011 2  imn 2011

Now that , predictable , the deal with Lundin is dead, the stock has a good chance of rallying roughly $6. It came down in a clear 5 wave sequence, right to the low point of a previous 4th wave triangle and has completed an a-b with a c still to come . That is the minimum expectation. It could possible go higher if the very large B-wave from the lows was not yet complete. Do not believe that it was not but who knows for sure. Use a stop at yesterdays close.

CCO update.

Hamilton

CCO march 27 2011

CCO is behaving more or less as expected. Still looking for that missing 5th wave down. We may be in it already or we could be tracing out a triangle that will simple consume a little more time. Nevertheless the target stays the same, $24.50 or maybe a little lower. There is should be a buy.

LLL , Lululemon Athletica

Hamilton

lll 1 lll2

This stock trades with a P/E of about 45. It has had bad times and good times, right now the times are good. Women , for some inexplicable reason , love this stuff. In EW terms it has either completed a 5 wave sequence from the lows, or a rather oversized b-wave. Does not matter much at this point. Wave one down is clearly 5 waves so more downside should come, perhaps to as low as $35 for starters. This “yoga” attire is immensely popular and quite expensive. A great combination when things are going well. That could be the problem.

KKD, Krispy Kreme Doughnuts, the sin side of this equation, was, once upon a time, not that long ago, equally popular. Something went wrong there ; see below as a reminder of what can happen when perfection is reached. This stock is still trading at a P/E of 45.

kkd