This energy company is now a hold, and our contributor has a new online pick for the rest of the year.
New Western Energy Corporation (NWTR)
from Cotton’s Technically Speaking
I’m holding my position in my January Top Pick, New Western Energy Corporation (NWTR), in which I own about 200,000 shares.
New Pick: Alibaba Group Holding Ltd. (BABA)
My new pick for the remainder of the year is Alibaba Group Holding Ltd. (BABA).
Alibaba is a rapidly expanding online company in China. Through its subsidiaries, it operates as an online and mobile commerce company in the Peoples Republic of China and internationally. It could be considered comparable to Amazon.com. It is the Premier China Online Company, and is just getting started.
Alibaba’s IPO was on September 19, 2014, and it closed at $93.89. After reaching $119.15 on November 10, 2014, it has been on a downward trend and made a new low of $76.22 on July 8, 2015. We think it is a great long term and short term BUY at this price level. We bought the stock yesterday, Thursday, July 9, 2015 at $80.54, along with the $81 July 31 Call Options.
The company’s earnings are growing rapidly, and the estimated year-end March 2016 earnings are $2.80/Share and estimated year end March 2017 earnings are $3.72/Share. A conservative buying strategy would be to Buy 1/3 of your allocation now, and 1/3 more if it declines to $70, and the balance if it were to get to $60/share—which we don’t believe will happen.
Joseph Cotton, Cotton’s Technically Speaking, www.cottonstocks.net, 727-289-4436, July 10, 2015