In his Price Volatility Volume model, Covestor manager William Smith uses a proprietary system to look for equities across all sectors that are overbought and oversold. He looks for volatility, volume and price and attempts to time the market to buy just before each stock hits and “all-time high.”
The top holding currently in this model is Quaker Chemical Corp (NYSE: KWR). KWR provides chemicals, services, technical expertise and chemical specialties to many different companies and industries globally. The company has a higher price to earnings ratio than others in its sector. In 2009 the stock price began aggressively falling, reaching a low of $4.68 on March 9th, 2009. After the March 2009 low, it started to steadily climb back reaching an all-time high closing price of $36.40 on August 2nd, 2010. This was likely a result of the company’s 2nd quarter 2010 results which were announced on July 28th 2010 and reflected increases in net sales and product volumes.
Another top position in the model is Skechers USA Inc (NYSE: SKX). Skechers designs and manufactures casual, fashion and exercise footwear for the entire family. Their latest product line, Shape-Ups, is a collection of specialized shoes said to tone the muscles of those who wear them. The company has a relatively low price to earnings ratio and stable net revenues over the past three years. On March 9th, 2009 the stock hit a low of $5.27. While this wasn’t the lowest price SKX had hit over its span, it was the lowest in about 9 years. The low didn’t last very long and on June 18th, 2010 the stock hit its highest closing price yet–$43.85. The company hasn’t been able to retain that high, even in light of a 68.9 percent increase in 2nd quarter 2010 net sales, and closed August 13th at $27.39.
