It had been weeks that Netflix, Inc. (NASDAQ: NFLX) was sitting on the pole position as the #1 stock chart in the Investors Business Daily 100. In fact, it had been #1 for so long that we thought the IBD was team was away on extended vacation. This weekend brought up a new position as the IBD 100’s #1 stock chart, and that was China New Borun Corporation (NASDAQ: BORN).
IBD had already helped China New Borun run up last week after a positive feature in the middle of the week with its ambition of growing from #3 in China to #1. The stock was a mere $11.00 stock just last Monday. Over the weekend in our ‘unusual suspects to watch in the week ahead’ we noted, “The company probably just got a lot more famous (if it was even known before) after this weekend because it unseated Netflix as the #1 stock in the Investors Business Daily 100. The IBD 100 might not ramp it but it will be more on the map than ever now for many momentum investors.” It turns out that the IBD pole position has helped the stock as shares were at $16.08 on Friday’s close, then went as high as $18.94 on Monday. IBD’s website as of 3:30 PM EST also had over 3,700 forum posts regarding China New Borun.
China New Borun is new as a stock and it produces and distributes corn-based edible alcohol in China. The stock kept hitting higher highs each day last week and the new post-IPO range for 2010 is $4.80 to $18.94. Today’s volume is massive as well with 4.8 million shares having traded by 3:30 PM EST, and it turns out that this is record trading volume. After a huge run in a week, after an IBD pole position and on huge volume today with a trading range of $15.21 to $18.94… China New Borun may have just become the next battleground stock for volume and momentum traders.
Did Netflix, Inc. (NASDAQ: NFLX) get killed over losing its pole position in the IBD 100? No. Its shares were up 2.5% at $153.40 at 3:30 PM EST. Its 52-week trading range is $45.94 to $174.40.
JON C. OGG
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