By Michael Cintolo, VP of Investments and Editor of Cabot Market Letter and Cabot Top Ten Trader
From Cabot Wealth Advisory 8/18/11
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Rosetta Resources (ROSE) is a stock I was forced out of recently because we bought it too high, had a loss and the market was weakening. But, interestingly, the stock found support around its 200-day moving average last week on a weekly volume total of 15.8 million shares—nearly twice as large as any week in the stock's history!
The story here revolves around the Eagle Ford Shale, where Rosetta is rapidly expanding production. Sales and earnings are just starting to lift off, and earnings estimates are strong, though of course, they can move around with the price of oil and natural gas.
ROSE doesn't look like a great buy here—its chart needs some time to calm down and round out. But the stock is attracting extraordinary volume, so it's worth watching to see how its base-building effort progresses.
Editor's Note: Mike Cintolo is VP of Investments for Cabot, as well as editor of Cabot Market Letter, a Model Portfolio-based newsletter of the best leading growth stocks in the market. Mike took over the Market Letter at the start of 2007, and since then he's beaten the S&P 500 by 14.5% annually thanks to top-notch stock picking and market timing. If you want to own the top leaders in every market cycle, be sure to give Cabot Market Letter a try by clicking HERE.
Michael Cintolo
Vice President of Investments and Editor of Cabot Market Letter and Cabot Top Ten Trader
A growth stock and market timing expert, Michael Cintolo is editor of Cabot Market Letter and Cabot Top Ten Trader. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides that has helped Cabot place among the top handful of market-timing newsletters numerous times.