Putnam’s stocks for a New Year’s bounce: BSX, BCO C, LLY, IDTI, KBH, LVLT, MOH, NYT, WEN

The legendary George Putnam publishes a Christmas list of stocks he expects to bounce around the New Year as tax selling lets up and allows the stocks to seek their normal level.  Mark Hulbert talks about this list at:091211wenhttp://www.marketwatch.com/story/ten-stocks-that-can-bounce-in-2010-2009-12-08

Just to keep ourselves from doing something destructive like ill-considered hedges or anticipating the market (an idle mind is the devil’s workshop — didn’t your mother ever tell you that?) we looked at their charts.  Here they are with some comments.

091211bsxBSO.  A reasonable bet, especially if it pops above the horizontal line.

091211bcoBCO.  another reasonable bet — and in fact it may already be rallying.  You could interpret the power bar as a buy signal.

091211cC.  A minor thorn in our sides.  But Dubai (?) just sold a major holding and maybe not a bad speculation at this price.

091211idtiIDTI.  Appears to have bottomed, but we wouldn’t buy it unless it pierced the horizontal line.

KBH.  Homes? Really?  Not for us.

091211lvltLVLT.  Maybe worth a speculation.  Needs to progress through the trendlines.

091211mohMOH.  Not an inspiring chart.  Maybe Putnam knows something we don’t.


NYT.  The bad news is it’s news.  The good news is that it’s in an uptrend. –So not unreasonable.

091211wenWEN.  Against common sense might be a good speculation.  Important to see upward movement first.

Needless to say we would find stops under any commitment here.  And remember this is a special play.  If we got progress in these we would be careful to raise stops more quickly than usual and would be surprised if there were any big winners in this group — but always necessary to respect George Putnam.

Leave a Reply