Stock picks and Cotton's favourite coal and solar plays

We bought James River Coal Co (JRCC) at $14 and Arch Coal at $14.25. JRCC has earnings estimates of $3.15/share for 2009 and Peabody Energy, which sells for $28.92, was upgraded to a buy by Davenport on July 2, 2009 and has earnings estimates of only $2.15 per share for 2009.

We also bought Renesola (SOL), one of our favorite Solars at $4.62 and $4.72 on Thursday because it looked like it bottomed at about $4.25 on Wednesday. Oppenheimer upgraded it to outperform (from perform) on Friday which should help the stock. We believe it will continue to move up from here. We are still cautious here because we believe the market is still vulnerable to a continued down move which usually brings down lots of stocks with it, but we feel a lot of secondary stocks, and the hot trading stocks have probably corrected sufficiently and can continue their upward moves.

We have immediate sell ratings on the following stocks, all of which have significant insider selling: Hewlett Packard (HPQ) 37.24 (Again); O’Reilly Automotive (ORLY) 39.38 and Intuit (INTU) 27.46 (Again).

Two of our favorite penny stocks, **Cel-Sci (CVM) .40 and **Unico (UNCO) .011 are trying to move upward. The companies are releasing optimistic type news releases which is all very good, but CVM seems like they are losing their focus. They just got about $5,000,000 in new funding but don’t seem to be as intent as they should be in getting the third phase trial for Multikine started, but are doing other things as well a la Swine Flu vaccines, etc. We have a position in the stock, which is acting better, and we bought more UNCO @ .094 and .012 last week. Are real gamble, but a real potential gold mining story.

The stocks below are for the most part at historic low prices with good charts. Our normal buying strategy is to buy 40% of a particular stock now and buy 30% more on each 20% decline from our original buy price for good entry prices.

Our stock picks (Based on Friday July 10, 2009 closing prices): Research In Motion (RIMM) 66.63 (spec); California Pizza Kitchen (CPKI) 14.76; Yahoo (YHOO) 14.93; Rigel Pharmaceuticals (RIGL) 13.61; American International Group (AIG) (spec) 11.74; GMX Resources (GMXR) 9.33; Internet Capital Group (ICGE) 6.74; ATP Oil & Gas (ATPG) 5.97; Agfeed Industries (FEED) 5.02 and Renesola (SOL) * **4.64. This market letter was published at 8:30 AM on Monday July 13, 2009.

* Cotton’s “stock of the week”

** We hold a position in the stock or option

GO TO STOCKCHARTS.COM TO VIEW THE ABOVE STOCK PICKS

YOU CAN EASILY LOSE 100% OF YOUR MONEY TRADING OPTIONS

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ABOUT THE AUTHOR

J.W. Cotton

Cotton's Technically Speaking is an online market letter published weekly by technical analyst Joe Cotton. The market letter features stock and option picks, and is based primarily on the analysis of stock and market trends. You can visit his website at www.cottonstocks.net to get more information or subscribe.

The author, Joe Cotton, in many cases has purchased or purchases the stocks or options featured, at prices equal to or lower than, or higher than the recommended price herein. A double asterick (**) indicates the author either holds an option, or stock position in that company as of publishing date. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THIS MARKET LETTER IS BASED ON THE TECHNICAL ANALYSIS OF STOCK TRENDS BY THE AUTHOR AND IS IN NO WAY TO BE CONSTRUED AS INVESTMENT ADVICE. For Investment Advice, consult an Investment Advisor or Certified Financial Planner. It is imperative that you use stop-loss orders in order to protect yourself against substantial losses in any particular stock-or in the event of a terrorist attack on U.S. soil.

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