Stock: OTC Nasdaq Spring (SPRNG)
Recommendation: Strong Buy from 40-50; Add from 50-60
Price Target: 85

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I put a new trade on yesterday — we are now long Spring SPRNG), and expect to maintain this position for a quarter or two.

Recall that we dumped our holdings of Winter (WNTR) late February; that is now a Sell/Avoid.

The Spring buy was a technical/cyclical call based on the 10 day moving average of its price temperature. It has been stuck in the 20s and low 30s for what seems like forever; it has had lots of difficulty breaking out over 40. But the past two weeks have seen SPRNG trade much better than it had been. It finally managed to get past that wall of resistance at 40. On Friday, SPRNG briefly touched 50 before falling back to the low 40s. Now that the 10 day moving average is over 40, we can comfortably accumulate more Spring in the immediate future.

This is an intermediate length hold — typically, 3 to 6 months. Based on a point & figure price projections, we believe this can be a double by the Summer — our 6 month target is in the mid 80s. Note that I would be a seller in the 90s and would short the hell out of SPRNG over 100.

We had lots of success with this same name last year, and though the seasonal patterns are well known, it still has not been arbitraged out of existence the way the January effect has.

Disclosure: Long SPRNG for clients and my own personal accounts

Category: Analysts, Humor, Technical Analysis, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

24 Responses to “New Trade Idea: Buy Spring (SPRNG)”

  1. VennData says:

    Long GOOG:

    The REAL Reason DC Wants To Hold Google Hearings (GOOG)

    http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/11/businessinsider-the-real-reason-dc-wants-to-hold-google-hearings-2011-3.DTL

    But the “BI” has a story that says that this is just a ploy for donations…

    http://www.businessinsider.com/politics

    …WOW! This “BI” has really got some cutting edge ideas. you mean that politicians… in America… call for hearings… to simply raise money from the target? WOW! Thanks for that “inside” scoop Henry Blodget. That’s really something we never, ever heard before. and they didn’t even get a price target from you… Oh, you’re barred from the securities industry? Why is that?

    Seems to me GOOG has the green.

  2. icm63 says:

    Seriously.. short the N225 is the only best play for the next 2 quarters, and this may bring down HSI and SP500 or your ‘canery in the coal mine ‘!

    http://www.readtheticker.com/Pages/Blog1.aspx?65tf=160_japanese-stock-market-forecast-post-2011-earth-quake-2011-03

  3. eightnine2718281828mu5 says:

    cue clueless comments… 3…2…1…

  4. J Kraus says:

    I like your macro strategy on this play, but I have taken a slightly approach. I am long SUMMR in the form of July calls at 100+

  5. KidDynamite says:

    early channel checks on SPRNG from my expert network indicate that it is gonna go bonkers to the upside soon. Maple sap flows are VERY strong

  6. J Kraus says:

    If I recall correctly, following the February 2nd SPRNG conference call, most analysts as well as management were predicting a blowout quarter.

  7. maspablo says:

    Br I am heading to bali and I am long SUM we trade a bit different down under !!

  8. wally says:

    Most august advice!

    … oh, wait, that doesn’t seem right.

  9. Jack says:

    I’m very long on 50F, shorting snow, sold all my sleet.

  10. idaman says:

    here I am multi-tasking with like 12 tabs open and I see this rec and the first I think is: “what five letter symbol ends in “G”?”

    so I try to pull up a chart, while thinking “Barry’s making a call based on chart technicals?!? That’s not deep thinking,” and then I realize, Doh! Barry got me!

    Good one.

  11. scottinnj says:

    Yes but you can buy some FALL real cheap now…rumor is that they are going to have a really strong third quarter

  12. J Kraus says:

    I agree that FALL seems quite attractive at current valuations, however I believe their competitor and arch-rival, ATUMN shows better technicals at this juncture. Plus, they have a more fanatical customer base.

  13. ByteMe says:

    I’m doubling down on my JAPAN short now that it moved 8 feet further away from China.

  14. ZackAttack says:

    Using my proprietary value metrics, I intend to put on a new position in WNTR. I may be early.

  15. JimRino says:

    For some technical reason SPRNG doesn’t do well globally, especially in Argentina.
    Wonder if we could get some Arbitrage Play going?

  16. dead hobo says:

    BR offered:

    I put a new trade on yesterday — we are now long Spring SPRNG)

    reply:
    —————
    satire on

    I think it’s going to rain -ZH

    satire off

  17. TerryC says:

    Here in west Texas we have been buying RAIN. It hasn’t traded for 5 months. We figure when it returns to trading on the exchange, we should get a great return. RAIN has been trading elsewhere around the world at record prices, but out here, we have forgotten what that stock even does.

  18. stevie says:

    In Canada we are long RAIN until April, then loading up on FLWRS before May.

  19. Moss says:

    Is that the 2nd or 3rd derivative of ‘green shoots’? Larry Kudlow has again demonstrated what a a Dick Four he is.

  20. DMR says:

    BR,

    I didn’t know you were into wave theory.

  21. Gatsby says:

    Unfortunately the Toronto Stock Exchange takes and extra two months to process buy orders for SPRNG.

  22. tutubie says:

    Can somebody please help confirm the stock symbol? There is nothing with SPRNG that I can find. Appreciate your help.

  23. [...] woke up this morning to see a new blanket of snow out my window, and a trade I put on a few weeks ago was deeply underwater: We were long Spring (SPRNG), and expect to maintain this position for a quarter or two. Recall [...]