Thursday, May 19, 2011

Stock watch: Social media, oil, and uranium

All anyone wanted to talk about today, it seems, was the LinkedIn (LNKD) IPO and whether or not there is a bubble in social media and tech startup valuations.

It was interesting to see the strength in LinkedIn spread to some of the other names in the social networking arena, such as SINA and QPSA, today.

We'll let you decide whether the LinkedIn IPO marks a Netscape-type event (1995) for social web or a fin de siecle reminiscent of the 1999-2000 dot com bubble peak. One thing is certain, easy money policies did a great deal to fuel deals and share prices in both cycles.

Meanwhile, I decided to look at some of the charts in the beaten down energy and resource sectors. Here are a couple names that caught my eye (no current positions in highlighted names and no personal investing/trading recommendations are intended. Do your own research & manage your own trades wisely).

Hathor Exploration (HAT.TO) is one of the only uranium names in my watchlist showing any strength. The sector has been extremely weak overall in the wake of the Fukushima disaster, so score one for HAT.TO on the relative strength meter at least.

Also been revisiting the smaller oil & gas names in my watchlist. Most of these momentum-driven shares took a big hit once crude oil turned down from its highs in April. Hercules Offshore (HERO) is one name from my oil & gas list that's held up quite well in that time.

One last chart: Pyramid Oil (PDO) is a more thinly-traded O&G stock that was beaten down from its March highs. There might be more downside for this stock in the near-term, but a shelf of support in the 4.50 to 4.70 area is evident on the weekly chart. If we see a bit more volume and follow through on this trendline break, it could signal a much-improved picture ahead for PDO.

So hopefully that gives you an added look beyond the web stocks and fuels some ideas for your own stock screens. As always, make the ideas your own and manage your risk. See you soon & in real-time on the stream.