This week Michael Arold added some new positions to his Technical Swing model. In this model Arold uses many different technical indicators as well as market movement and fundamental analysis to choose positions to add. This is a short-term model that looks to take advantage of short-term price movement.
One of the positions Arold added this week was STEC Inc (NASDAQ: STEC), the manufacturer and developer of specialized solid-state flash drives globally. The company’s net revenues grew from $227.4 million in 2008 to $354.2 million in 2009 and their net income rose from $4.3 million in 2008 to $72.6 million in 2009. While their total liabilities had been declining from 2006 to 2008, they rose by $20.6 million in 2009, but their shareholder equity rose from $181.6 million in 2008 to 278.6 million in 2009. The closing price on September 3rd was $12.01, but by September 9th it had dropped to $11.59. Once again on the rise, STEC closed at $12.99 on September 15th.
Another new position in the model is ProShares Ultra Gold (UGL), a fund that looks to deliver 200 percent the performance of gold bullion. On September 16th, the fund was trading at a premium to NAV.
Deere & Co (NYSE: DE) is the third position added to the model this week. DE has experienced a reduction in both revenues and income from 2008 to 2009, and while their total assets increased in 2009, their shareholder equity fell from $6.5 million in 2008 to $4.8 million in 2009.
Lastly, Arold added Apple Inc (NASDAQ: AAPL) to the Technical Swing model. We recently discussed AAPL’s financials here, so let’s take a look at their stock price movement. AAPL stock hit an all-time high when it closed June 18th, 2010, when it closed at a price of $274.07. It did not maintain that price and instead subsequently dipped as low as $239.93 on August 24th, 2010. By September 15th it was climbing back toward the June high point as it closed at $270.22.
