Stock Watch

I came across two stocks that I'd like to you keep an eye on for possible future acquisition. These companies are Nacco Industries (NC) and Cephalon (CEPH).

Nacco Industries (NC)

Although Nacco is not trading near its low, it is worth tracking because of the fundamental. There's a head-and-shoulder pattern that occurred this past year. Nacco then broke above $40 in late July and never look back. Look for shares to retrace to $50 and may be $40. I will do more through analysis on this and update you. For now, just keep an eye on it.

Cephalon (CEPH)

A double-bottom at $53.25 area. A double-top is around $60 so any close above $60 will be very bullish. Other technical bullish pattern is the cross over the 150 day moving average. Keep an eye on this name as it could be a possible acquisition.

Market Note

Kulicke & Soffa (KLIC), a dominant semiconductor equipment company reported an impressive earning today but instead of shares soaring, it fell more than 10%. Revenue rose 80%, doubled from previous year, and 112% sequentially. Future expectation were not far from guidance either with company expecting $115 million to $120 million in revenue when the street is expecting $116.5 million. I wonder if the shares are simply overvalue trading at 26x forward earning. That seems like a heavy premium to pay for profit that hasn't been recognized.

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