Avago Technologies Ltd. (NASDAQ: AVGO) had already risen 80% in 2015, but then fell 40% along with the money growth slowdown that was responsible for the August crash. It is now 46% higher than its 52-week low. Avago is a semiconductor company that took a gamble on a massive expansion project in 2014, including some big spending on research and development that ate into its earnings considerably, but seems to have paid off. The company has made over 250% more money in the past three quarters than it did in all of 2014. Earnings will be reported early December, and a good print could take it over the 50% mark.
The price movements for Avago in 2015 suggest that this is a momentum stock that is greatly influenced by the monetary environment. It did horribly during the money supply slowdown that began in April and ended in September. Investors looking to catch more gains with Avago should monitor money supply growth closely. As long as it is growing, which it is now, Avago will move higher. As soon as it slows down, that will be the time to take profits on this one.
Equifax Inc. (NYSE: EFX) is up 42% from its lows this year, but with earnings statements not due until 2016, it will only be momentum that brings this data service company up to the 50% mark. That is very possible, and even likely, considering that Equifax shares have historically had very good fourth quarters. A look at a five-year chart of this stock shows that it is also very sensitive to monetary fluctuations. It consistently falls usually somewhere between April and September and rises through the end of the year, which is consistent with seasonal monetary fluctuations. Chances are that this pattern will continue as 2015 comes to a close, making it likely that Equifax will be 50% higher or more by the end of December.