With the stock market rally getting long in the tooth, not
many top mutual fund managers' recent buys are near buy points
that would interest CAN SLIM investors.
Since the S&P 500's last 10% dip, to a low in June 2012,
the index has climbed 42%.
Many leading stocks that have been favorites of the
top-performing funds in the past three months have broken out of
basing patterns at least twice as they've worked their ways to
Two that are near buy points:Medidata Solutions (
) andCaesarStone Sdot-Yam (
Managers of top-performing funds the past three months have
been loading up on Medidata in their latest reporting periods.
Thirty-three leading funds added the stock, investing an
estimated $64 million.
The New York-based firm provides cloud-based clinical
development software for academic institutions, contract research
organizations, drug and biotech companies.
Medidata's products help these companies analyze data to
better administer and structure clinical trials. Their customers
include big household drug firms such as Amgen, Pfizer and
As revenue and client base ramp up, the company recently
raised its long-term revenue growth target to 20%-25%.
The stock has been a steady performer, rising 200% thus far
this year. It's currently in the later stage of its ascent and
may be more prone to failure. There are always exceptions to the
rule. Medidata is trading at about 121, near its buy point of
Leading funds have also taken an interest in CaesarStone, the
maker of high-quality quartz surface material, most often used in
kitchens and bathroom countertops.
Much like Medidata, the company is growing revenue at a steady
clip, helped by a rebounding housing market.
It's planning on growing revenue and distribution in North
America by building a new manufacturing facility in the U.S. in
2014, with the ability to expand current production by 50%.
The stock was also up more than 200% this year and trading
near an early-stage base buy point of 48.79.
Among top funds' latest sells wasGilead Sciences (
). The stock is holding near its all-time high, having run up
after breaking out from a late-stage cup base in September.