Spectra Wants Leaders, Catalyst Stories and Stocks Wipe Out Prior Week’s Losses

“We classify change in two buckets,” said Kelly, manager of $447 million Alger Spectra . “One holds companies that are dominant, have high unit volume growth and are taking share in good growth markets.”

The other bucket consists of companies undergoing lifecycle change. These companies are working to become dominant.

For them, change comes through something like a new product, new regulations, new managers or an acquisition.

Apple (AAPL), a top holding as of the fund’s latest disclosure, is an example of a company that is in the dominant bucket. But when the fund first took a stake in 2004, Apple was a lifecycle change story.

“A lot of investors had left Apple for dead,” Kelly said. “But iPod turned out to be one of the hottest products ever. Pulling in new customers helped Apple begin to take market share in other products, like personal computers.”

Kelly says Apple can still grow because it’s gaining market share in areas such as computers and handsets. [Read the full article]

The Nasdaq ran up 1.4%. Apple (AAPL) climbed 4%. It’s expected to unveil a tablet device at a media event Jan. 27. The stock nearly triggered a 215.69 buy point from a three-weeks-tight pattern.

Health care issues were some of the day’s top performers on speculation that a medical overhaul may not go through.

Amedysis (AMED) rallied 8% on more than twice its average trade. The stock has logged four up weeks in heavy trade in the past six weeks. It has not seen a distribution week since October. Amedysis cleared a cup base in December.

Elsewhere, SanDisk (SNDK) gained 7% in heavy trading. The flash memory products maker reports earnings Jan. 28. Analysts are expecting profit of 67 cents a share, reversing a year-ago loss of $1.65 a share. The stock cleared a cup base in December.

In after-hours news, Cree (CREE) leapt 10% after delivering fiscal Q2 earnings and sales ahead of views. It also gave a bright fiscal Q3 outlook. [Read the full article]

Ahead of IBM’s (IBM) earnings release this evening, investors appeared optimistic in both its stock and options. With an hour left in Tuesday’s session, shares of IBM were up one percent near 133 and breaking above a tight three weeks consolidation as part of a base-on-base pattern.

On the option front, implied volatility, also demonstrated a mostly confident investor. In the case of IBM, “confidence” is being related to slightly bid premiums, but far from the kind of price levels, which hint at real concern and the need for protective strategies. [Read the full article]

Gold edged higher, but gains were limited due to a lack of cues from the dollar in the currency market. Following the launch of the palladium and platinum funds earlier this month, these metals have benefited from expectations that buying interest will remain intact for some time.

In addition, signs of steadying global economies and views that central banks might start draining ample funds from the banking system or raise interest rates later in the year are also prompting investors to buy the platinum group metals.

“The PGM price development is related to the global economy and views that the economy is already recovering,” said Dick Poon, manager of precious metals at Heraeus in Hong Kong. “The ETFs backed by PGMs are also supporting prices.”

Investors sold inventories last year when demand was slack, but they started buying these metals from the second half of 2009, partly because they may need to fill up their stocks, Poon said. [Read the full article]

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