Winning Trades Based on Analyst Ratings for June 26, 2012
Two stocks were the recipients of new bearish signals and fifteen others received bullish ratings from analysts on Tuesday. New bearish ratings are initiations with or downgrades to a Sell, Underperform or Underweight rating. New bullish ratings are initiations with or upgrades to Buy, Overweight and Outperform ratings.
Below are the analyst calls and the stocks associated that had the largest price moves from the opening.
Maxim Group on PhotoMedex
Maxim Group initiates its coverage on PhotoMedex (NASDAQ: PHMD) with a Buy rating. Shares opened at $12.48 and reached an intraday high within one minute of opening, rising 6.17 percent. Benzinga Professional reported the initiation at 8:47 AM. (Summary on this piece is not available.)
Canaccord Genuity on Millennial Media
Canaccord Genuity initiated coverage on Millennial Media (NYSE: MM) with a Buy rating and a price target of $18. Shares opened at $12.85 and reached an intraday high of $13.45 at 10:07 AM, up 4.67 percent. Benzinga Professional reported this at 7:09 AM. A summary of this report is available here.
Benchmark on Move
Benchmark initiated its coverage on Move (NASDAQ: MOVE) with a Buy rating and a price target of $11. Shares started trading at $8.62 and reached an intraday high of $8.97 at 9:44 AM, for a 4.06 percent move. Benzinga Professional reported this at 6:27 AM. See the summary of this report here.
The Rest of the Ratings
A favorable move for stocks newly rated with a bearish rating is on the downside. For a newly rated stock on the bullish side, a favorable price move would be on the upside. Within first two hours of trading, all 18 stocks that were subject to new bullish or bearish ratings had favorable moves. For some of them, however, price action reversed quickly and recovered at varying extents. At the best spots - intraday highs for bullish-rated stocks, and intraday lows for bearish-rated ones - the collective move was a favorable 2.01%. At the time of this writing, exactly 50 percent of stocks are still in favorable territory and the collective return is just 0.3 percent on the positive side.
Trading the Ratings
Had traders assumed positions of $5,000 on each stock - selling bearish-rated stocks and buying bullish-rated ones - the maximum profit would have been $1,625 on just under $80,000 traded. If those positions were still open, the profit would have been $241. Total commissions would have been $160 in both cases.
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