New issues make good candidates for watch lists.
Although many never become market leaders, the potential rewards from the market's new faces are significant enough that they deserve a look — particularly after they've had time to establish a 50-day moving average.
Real estate developer Howard Hughes Corp. (HHC) debuted on the NYSE in November.
The stock cleared a handle on Wednesday, but volume wasn't impressive. It made a new high Friday but may have more base-building to do. The Relative Strength line is at a new high, a bullish sign.
Except for a couple of days in April, the stock has held above its 50-day moving average.
So, if the general market shifts to a confirmed uptrend and this stock breaks out, should you buy it? Not necessarily. The disciplined investor neither buys solely on the chart nor solely on price momentum. Strong fundamentals are essential, and Hughes' story is less compelling on that score.
Howard Hughes earned 25 cents and 30 cents a share in the past two quarters, vs. year-ago losses. Revenue jumped 64% and 84% in the past two quarters. That's pretty much its total upside history.
The Composite Rating is 98. The stock, though, is thinly traded, averaging about 223,000 shares a day in volume.
The developer of planned communities and mixed-used properties became an IPO when it was spun off from General Growth Properties (GGP), the second-largest mall owner in the U.S. General Growth filed bankruptcy in 2009 and reorganized.
While Hughes operates in the real estate sphere, it isn't a real estate investment trust. REITs have restriction on what activities and services they can undertake. Hughes has chosen to avoid the REIT path and thus gain greater business flexibility.
Although many never become market leaders, the potential rewards from the market's new faces are significant enough that they deserve a look — particularly after they've had time to establish a 50-day moving average.
Real estate developer Howard Hughes Corp. (HHC) debuted on the NYSE in November.
The stock cleared a handle on Wednesday, but volume wasn't impressive. It made a new high Friday but may have more base-building to do. The Relative Strength line is at a new high, a bullish sign.
Except for a couple of days in April, the stock has held above its 50-day moving average.
So, if the general market shifts to a confirmed uptrend and this stock breaks out, should you buy it? Not necessarily. The disciplined investor neither buys solely on the chart nor solely on price momentum. Strong fundamentals are essential, and Hughes' story is less compelling on that score.
Howard Hughes earned 25 cents and 30 cents a share in the past two quarters, vs. year-ago losses. Revenue jumped 64% and 84% in the past two quarters. That's pretty much its total upside history.
The developer of planned communities and mixed-used properties became an IPO when it was spun off from General Growth Properties (GGP), the second-largest mall owner in the U.S. General Growth filed bankruptcy in 2009 and reorganized.
While Hughes operates in the real estate sphere, it isn't a real estate investment trust. REITs have restriction on what activities and services they can undertake. Hughes has chosen to avoid the REIT path and thus gain greater business flexibility.
