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Ross Watchlist Week of July 19 2021

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Horizon Therapeutics (HZNP)

  • Surge score: 72/100
  • % Above 52-wk low: 74.6%
  • MFI reading: 59
  • Sales growth: +49% TTM
  • Triple momentum: YES

I added Horizon to the watchlist last week.

The breakout has not yet triggered but the chart continues to tighten, and the setup looks really strong.

Volatility is decreasing and pullbacks are becoming shallower – a sign that less supply is coming to market.

Decreased supply is a good thing.

It means less people are offering shares for sale, so an increase in demand should trigger a more substantial price move higher.

The right side of the chart is very tight, and even with the selloff last week, shares only fell by 3%.

My entry and stop prices are the same.

I’m looking for a breakout above $97.05 as my trigger to buy.

If filled, I will be working a stop below the July low at $90.80.

Condor Hospitality (CDOR)

  • Surge score: 94/100
  • % Above 52-wk low: 180%
  • MFI reading: 74
  • Sales growth: -27%
  • Triple momentum: YES

Condor’s sales were down in the 1st quarter, but it is easy to understand why.

The company owns a small portfolio of 15 hotels with 1,908 rooms across Texas and the Southeast Unites States.

COVID restrictions are just now loosening, and travel is finally beginning to pick back up.

So I expect a big jump in revenue when the company reports its numbers next month.

This was an $11 stock before the pandemic, so at 6 bucks a share, there is plenty of upside.

This is a micro-cap stock with low daily volume and a small float of just 7.9MM shares.

Any positive news or institutional participation could send shares soaring. But I need confirmation that the stock is in play before I get involved.

My entry trigger would be $6.55 with a sell stop at $5.85.

180 Degree Capital (TURN)

  • Surge score: 80/100
  • % Above 52-wk low: 64.4%
  • MFI reading: 60
  • Sales growth: +242%
  • Triple momentum: YES

TURN is another micro-cap stock like Condor.

The company has a market capitalization of just $82.7 million and the float is small.

The short, medium, and long-term trends all turned up at the start of the year.

The stock trended higher and then spiked in early May.

Price action has been extremely tight ever since, and trading has remained in a 3-4% range on light volume.

A move above $8.25 on higher-than-average volume would trigger me to buy.

My stop would be at $7.80, representing a 5.4% risk on the trade.

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