So where should you invest?
Ideally, in the uptrending stocks of companies that are not yet well-loved. Here are two we’ve mentioned before and one new one.
Flash Player 9 or higher is required to view the chart Click here to download Flash Player nowNetflix (NFLX) delivers DVDs through the mail, and boasts a growing, loyal customer base. People are watching more movies, both at home and in theaters, so business is growing. And Netflix is ahead of the curve in allowing subscribers to watch unlimited movies online. The stock hit a new high today.
Starent Networks (STAR) is a technology infrastructure company whose hardware/software solutions enable mobile operators to deliver multimedia services to their subscribers. They’re used by over 85 mobile operators in more than 35 countries, though Verizon accounts for half their revenue. In the fourth quarter, revenues grew 40%. The stock hit new highs last Thursday.
China Distance Education (DL) is a tiny Chinese company that offers online education programs. In the fourth quarter, revenues grew 171%. Chinese stocks in recent weeks have been acting better than U.S. stocks, and DL is one of the leaders, loved by almost no one in the U.S. Just note that it’s low-priced and volatile. It topped 5.50 today but would be more attractive on a pullback toward its 25-day moving average, now around 4.80.
Netflix and Starent have both been featured in Cabot Top Ten Report, while China Distance Education has been featured in Cabot China & Emerging Markets Report.