I Know First Algorithm Review: Stock Picks Based On Algorithms

The stocks selected here are the top performing stocks from I Know First: Daily Market Forecast’s January 27^th, 2015 stock forecast titled Machine Learning Trading: 17.64% (Long) and 28.19% (Short) Return in 1 Month. This forecast is part of the “Top 10 Stocks” package, as one of I Know First’s quantitative investment solutions. The “I Know First Average” return was 2.16% for the long position and 6.89% for the short position versus the S&P 500’s return of -1.19% over the same time period.

Learn how to read the predictions: Instructions

Learn how to strategize with the forecast: Algorithmic Trading Strategies 

Please note-for trading decisions use the most recent forecast. 

Get today’s forecast and Top stock picks.

Long Position:

Signal (1 month): 46.52

Predictability (1 month): 0.58

Return: -7.07%

Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company operates a network of 80 stores and galleries in North America, Europe, and Asia. Tesla Motors, Inc. was founded in 2003 and is headquartered in Palo Alto, California.

Signal (1 month): 29.60

Predictability (1 month): 0.28

Return: 7.17%

Medivation, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies to treat serious diseases in the United States. The company is headquartered in San Francisco, California. Medivation had a signal strength of 29.60 and a predictability indicator of 0.28. In accordance with the algorithm prediction, the stock returned 7.17% in the 1-month time horizon. Barclays Capital initiated coverage on the company, giving it an Overweight rating. It cited Medivation’s Xtandi, which is now set to have broader reach in prostate cancer with a pre-chemo label and a focus on the much larger urologist prescriber base.

Signal (1 month): 24.89

Predictability (1 month): 0.52

Return: -6.51%

Chicago Bridge & Iron Company N.V. provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management, and environmental services to customers in the energy infrastructure worldwide. Chicago Bridge & Iron Company N.V. was founded in 1889 and is headquartered in The Hague, the Netherlands.

Signal (1 month): 22.53

Predictability (1 month): 0.50

Return: 7.79%

Dr. Reddy’s Laboratories Limited operates as an integrated pharmaceutical company in India. It also operates in North America, Europe, Russia, other countries of the former Soviet Union, and internationally. The company was founded in 1984 and is headquartered in Hyderabad, India. Dr. Reddy’s Labs had a signal strength of 22.53 and a predictability indicator of 0.50. In accordance with the algorithm prediction, the stock returned 7.79% in the 1-month time horizon. Morgan Stanley recently included the company in its list of pharmaceutical companies to own in emerging markets, and the Indian market itself has surged more than 7.5% since the beginning of the year. The company also announce the acquisition of an over-the-counter nicotine patch from Novartis.

Signal (1 month): 22.04

Predictability (1 month): 0.40

Return: 9.62%

NetEase, Inc., through its subsidiaries, operates an interactive online community in the People’s Republic of China. It provides Chinese language content and services through its online games, Internet portal, e-mail, and wireless value-added service businesses. NetEase, Inc. was founded in 1997 and is based in Beijing, the People’s Republic of China. The company had a signal strength of 22.04 and a predictability indicator of 0.40. In accordance with the algorithm prediction, the stock returned 9.62% in the 1-month time horizon. The Chinese online gaming company has delivered three straight quarters of accelerating growth, and it is expected to extend that streak in its upcoming earnings report.

Signal (1 month): 20.45

Predictability (1 month): 0.56

Return: -9.74%

The Bank of Nova Scotia provides various personal, commercial, corporate, and investment banking services in Canada and internationally. The company provides financial advice, solutions, and day-to-day banking products, including debit cards, checking accounts, credit cards, investments, mortgages, loans, and related creditor insurance products to individuals and small businesses. The bank was founded in 1832 and is headquartered in Toronto, Canada.

Signal (1 month): 19.46

Predictability (1 month): 0.49

Return: 17.64%

Silver Wheaton Corp. operates as a precious metals streaming company worldwide. The company has 20 long-term purchase agreements and 1 early deposit long-term purchase agreement associated with silver and/or gold relating to 24 different mining assets. The company was founded in 2004 and is headquartered in Vancouver, Canada. The company had a signal strength of 19.46 and a predictability indicator of 0.49. In accordance with the algorithm prediction, the stock returned 17.64% in the 1-month time horizon. Shares of Silver Wheaton went up after the Swiss Central Bank’s decision to abandon the franc’s cap against the euro sent investors rushing to gold as a haven from swings in currencies.

Signal (1 month): 19.30

Predictability (1 month): 0.26

Return: 6.43%

Aluminum Corporation of China Limited manufactures and distributes alumina and primary aluminum in the People’s Republic of China and internationally. The company was founded in 2001 and is based in Beijing, the People’s Republic of China. Aluminum Corporation of China Limited is a subsidiary of Aluminum Corporation of China. The company had a signal strength of 19.30 and a predictability indicator of 0.26. In accordance with the algorithm prediction, the stock returned 6.43% in the 1-month time horizon. Aluminum production is a highly energy intensive process, and the misfortune that has befallen energy companies offers an opportunity to lower the cost of producing the lightweight model. Aluminum companies like Aluminum Corporation of China Limited have prospered and taken advantage of these lower energy costs.

Signal (1 month): 19.14

Predictability (1 month): 0.27

Return: -6.43%

LVMH Moet Hennessy Louis Vuitton SA manufactures and sells luxury products. The company operates through Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and Selective Retailing business groups. The company was incorporated in 1923 and is based in Paris, France.

Signal (1 month): 16.98

Predictability (1 month): 0.45

Return: 2.72%

Genesis Energy, L.P. operates in the midstream segment of the oil and gas industry in the Gulf Coast region of the United States. Genesis Energy, LLC serves as a general partner of the company. Genesis Energy, L.P. was founded in 1996 and is based in Houston, Texas. The company had a signal strength of 16.98 and a predictability indicator of 0.45. In accordance with the algorithm prediction, the stock returned 2.72% in the 1-month time horizon. The company announced that it will pay a regular quarterly distribution of $0.595 per Common Unit for the quarter ended December 31, 2014. This distribution represents an increase of approximately 11.2% over the fourth quarter 2014 quarterly distribution of $0.535 per unit, and an approximate 2.6% increase over the distribution paid with respect to the third quarter of 2014. This is the thirty-eighth consecutive quarter in which Genesis has increased its quarterly distribution.

Short Position:

Signal (1 month): -28.43

Predictability (1 month): 0.44

Return: 1.53%

Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products worldwide. It mines and produces potash, which is primarily used as fertilizer. The company sells its fertilizers to retailers, dealers, cooperatives, distributors, and other fertilizer producers, as well as industrial products primarily to chemical product manufacturers. Potash Corporation of Saskatchewan Inc. was founded in 1953 and is headquartered in Saskatoon, Canada.

Signal (1 month): -28.68

Predictability (1 month): 0.54

Return: -8.04%

The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, markets, and distributes tires, and related products and services in the United States and internationally. It operates approximately 1,240 tire and auto service center outlets, where it offers its products for retail sale and provides automotive repair and other services. The Goodyear Tire & Rubber Company was founded in 1898 and is headquartered in Akron, Ohio. The company had a signal strength of -28.68 and a predictability indicator of 0.54. In accordance with the algorithm prediction, the stock returned -8.04% in the 1-month time horizon. Goodyear’s shares slid hard Tuesday after the company lowered its fourth-quarter and full-year 2014 growth forecast. The company cited a challenging environment in Europe in the fourth quarter and the effect of a stronger dollar globally. It also says that it expects global volume for its products to be essentially flat this year with 2014’s volume.

Signal (1 month): -31.25

Predictability (1 month): 0.29

Return: -9.48%

Fossil Group, Inc., together with its subsidiaries, is engaged in the design, development, marketing, and distribution of consumer fashion accessories worldwide. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas. The company had a signal strength of -31.25 and a predictability indicator of 0.29. In accordance with the algorithm prediction, the stock returned -9.48% in the 1-month time horizon. Analysts at Bank of America downgraded the company’s rating from Neutral to Underperform, expressing concern that Fossil’s growth trajectory is slowing.

Signal (1 month): -32.15

Predictability (1 month): 0.38

Return: -22.25%

Apollo Education Group, Inc. provides private education services. It offers online and on-campus undergraduate, graduate, professional development, and other non-degree educational programs and services, primarily to working learners in the United States and internationally. The company was formerly known as Apollo Group, Inc. and changed its name to Apollo Education Group, Inc. in November 2013. Apollo Education Group, Inc. was founded in 1973 and is headquartered in Phoenix, Arizona. The company had a signal strength of -32.15 and a predictability indicator of 0.38. In accordance with the algorithm prediction, the stock returned -22.25% in the 1-month time horizon. For profit universities have taken a hit recently after Obama announced his plan for fee community college.

Signal (1 month): -32.41

Predictability (1 month): 0.35

Return: 3.25%

Sasol Limited operates as an integrated energy and petrochemicals company worldwide. It has 293 Sasol branded service stations, including 7 Sasol branded integrated energy centers; and 87 Exel service stations in South Africa, as well as exports fuels through third parties to South African Development Community countries. The company was founded in 1950 and is headquartered in Johannesburg, South Africa.

Signal (1 month): -45.91

Predictability (1 month): 0.24

Return: 4.13%

Health Net, Inc. provides managed health care services through health plans and government-sponsored managed care plans in the United States. It operates through Western Region Operations and Government Contracts segments. Health Net, Inc. was founded in 1979 and is based in Woodland Hills, California.

Signal (1 month): -50.16

Predictability (1 month): 0.49

Return: -17.56%

Greif, Inc. produces and sells industrial packaging products worldwide. The company was formerly known as Greif Bros. Corporation and changed its name to Greif, Inc. in 2001. Greif, Inc. was founded in 1877 and is headquartered in Delaware, Ohio. The company had a signal strength of -50.16 and a predictability indicator of 0.49. In accordance with the algorithm prediction, the stock returned -17.56% in the 1-month time horizon. In the most recent earnings report, revenues declined 4.2% year over year, and gross profit decreased by 10.3% year over year.

Signal (1 month): -53.63

Predictability (1 month): 0.22

Return: -1.84%

Rackspace Hosting, Inc., through its subsidiaries, provides cloud computing services and managing Web-based IT systems for small and medium-sized businesses and large enterprises worldwide. The company was founded in 1998 and is headquartered in San Antonio, Texas. The company had a signal strength of -53.63 and a predictability indicator of 0.22. In accordance with the algorithm prediction, the stock returned -1.84% in the 1-month time horizon. The cloud service has seen increasing competition recently, with Google, Amazon, and Microsoft all driving down the price. Rackspace has managed to stay afloat by focusing more on managed cloud services, but may need to partner with one of these larger services to remain viable in the long term.

Signal (1 month): -59.80

Predictability (1 month): 0.38

Return: 9.56%

General Growth Properties, Inc is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It engages in owning, managing, leasing, and redeveloping high-quality regional malls. General Growth Properties, Inc was founded in 1986 and is based in Chicago, Illinois.

Signal (1 month): -87.68

Predictability (1 month): 0.43

Return: -28.19%

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. The company was founded in 1972 and is headquartered in São Paulo, Brazil. Braskem S.A. is a subsidiary of Odebrecht S.A. The company had a signal strength of -87.68 and a predictability indicator of 0.43. In accordance with the algorithm prediction, the stock returned -28.19% in the 1-month time horizon. Zacks lowered their rating for the company from a Neutral rating to an Underperform rating, and the company hit a 52-week low afterwards.

Business Disclosure: I Know First Research is the analytic branch of I Know First, a financial startup company that specializes in quantitatively predicting the stock market. We did not receive compensation for this article, and we have no business relationship with any company whose stock is mentioned in this article. Read More From I Know First Research:

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