“Slingshot Trades” and some updates for the Friday File

What are the stocks touted by Shah Gilani for his Capital Wave Forecast?

By Travis Johnson, Stock Gumshoe, February 6, 2015

I haven’t looked at the Capital Wave Forecast stuff from Shah Gilani in quite a while, so the latest teaser pitch from him and the Money Map folks caught my eye — particularly because he’s touting big moves in specific large-cap “blue chip” type stocks, which is pretty rare in newsletterdom (it’s a lot easier to predict a big move in a microcap biotech stock or a junior miner — because heck, anything can make those kinds of stocks jump higher… even a newsletter recommendation).

So for our Friday File edutainment today, I’m going to jump in and get you some solutions to those three large-cap stocks he’s teasing for “Slingshot Profits” — one in energy, one in biotech, one in telecom. But first, a couple notes on some other stocks I’ve been watching…

It looks like the conventional wisdom about the financials stocks is still the conventional wisdom — people start to anticipate higher rates, the big bank stocks go up. That’s been good for the PNC and JP Morgan warrants — PNC has bounced back up about 10% from its mid-January lows, and the PNC Warrants are up about 25%; JP Morgan is up 7% in the past week and the JPM Warrants are up 14%, that’s the kind of leverage that warrants bring and those — particularly PNC-WT — are still very cheap long-term leverage on strong, reasonably valued companies.

But the more dramatic move in the warrants came on Boston Private Financial (BPFH), and that’s a wealth management firm and private bank that may have less direct benefit from rising rates — their move this week came on rumors that several big Canadian banks had looked at acquiring BPFH as they try to boost their US wealth management and asset management businesses. They didn’t buy BPFH, it’s unclear whether they even talked to the company, but just the hint was enough to make people value BPFH a bit more fairly again after it got beaten down without any really good reason (in my opinion) following their last earnings report. That one’s the riskiest of the TARP Warrants that I own and talk about, and the most volatile, so — no surprise — the warrants reacted even more violently than the stock. BPFH jumped up about 15-20% on the news, and the warrants jumped up about 40%, in one day.

I’m still ...

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