new Featured long position: GPOR
GPOR is breaking out of a two-week tight base on base pattern, on very strong volume. This chart is very pretty since mid January when the stock started to move higher on heavy accumulation. Since then the stock has moved constantly higher, finding support above the 50 day moving average the whole way. The BOP since mid January has been green to max green for much of the way higher making this chart very pretty. However, what would be better would be if the BOP was green the entire way from mid March and if BOP was still max green on today’s breakout. The fundamentals are very strong, with EPS growing between 14% and 999% the past five quarters, sales growth between 83% and 999% the past four quarters, a ROE of 27%, and YOY earnings estimates for 2007 and 2008 for gains of 71% and 38% respectively. Fund ownership is not really growing, going from 31 to 32 funds the past four quarters. Cut your first and the majority of your loss with a close below the 21.37 level and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
new very speculative long position: SCLD
SCLD is breaking out of a poorly shaped cup with long handle pattern, on extremely strong volume. This stock’s chart had a nice run from late October to January where the stock moved higher on huge accumulation and max green BOP. Since then it settled down into a very tight but oddly shaped base. The base was not pretty but volume was quiet and BOP did not stay red the whole way. In late June the stock started to move higher on strong volume then settled down on quiet volume that led to today’s breakout in a surge of volume and BOP back to the green area. This stock would be much nicer if the base had a better shape, the RS line was hitting new highs with price, and if BOP was green to max green from early April to now. This isn’t the greatest chart but the breakout is very strong and over a lot of resistance. The fundamentals are terrible, with EPS bleeding red ink and sales showing nothing but negative growth. This stock is in no way shape or form for newbies and should be only a small long for the most speculative of speculators out there. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
adding to existing Featured/speculative Featured long position: JDAS
JDAS is breaking out of a base on base pattern, on very strong volume. This chart is and has been very pretty since early April where the stock took off on huge volume and with BOP surging to a near max green BOP. Since then, it pulled back on low volume with BOP holding the zero line, and then took off again in June on heavy accumulation with BOP trending to a higher level of green BOP every week. The RS line and moneystream are also hitting new highs, confirming the action in the stock. If BOP was max green during the whole base, this stock would be perfect. The fundamentals are good and getting better, with EPS growing from 18% to 300% the past three quarters, sales growing from 60% to 90% the past three quarters, YOY earnings estimates for 07 and 08 for gains of 74% and 16% respectively, and a ROE of 6%. Fund ownership has fallen from 91 funds to 87 over the past year, giving me a pause on wanting to load up on this very pretty fundamentally strong stock. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
adding to existing speculative long position: PRGX LWSN ASTI
PRGX is bouncing off the 50 dma and breaking out to a new 52-week high from a flat base, on strong volume. This is a very pretty chart, with all the green BOP, strong accumulation, great intraday price action, and constant support at the 50 dma, since September. The problem with this chart, now, like so many others, is that the RS line is not moving to new highs along with the price. It would also be nice if BOP was max green on today’s move and was either green or max green during this flat base. But I am up 108% from my first purchase and this is going to be a small long anyway so that is nit-picking it with the RS line and BOP. EPS has turned around and grew 108% the most recent quarter and sales grew 2%, after a ton of red ink the previous six quarters. This stock may be a good stock to be long but it is still risky for newbies to invest too much money in this or even invest in it at all with it being up so much from the first bounce and with the poor fundamentals. However, a YOY EPS growth of 65% is expected in 2008. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.
LWSN is breaking out of a base on base pattern and bouncing off recent support, on strong volume. This chart is very pretty with the green to max green BOP since late January, the strong accumulation since February, and the great support this stock finds at the 50 day moving average. What would make the chart better would be if the BOP did not go from max green to green this month, if there was more volume on this bounce, and if the RS line was hitting new highs. The fundamentals are mixed, with EPS bleeding red ink the past four quarters, sales growing from 6% to 118% the last seven quarters, a ROE of 6%, and YOY earnings estimates for 2008 for a gain of 106%. Despite the growing sales and upcoming increase in earnings, there has been no growth in fund ownership the past four quarters. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
ASTI is bouncing off support near the 50 day moving average and the pivot point area of the July breakout, on strong volume. This stock appears ready to start another uptrend with the breakout above the 50 day moving average in June and subsequent holding of that line the past month. BOP has been green to max green from early January to early/mid May and from mid June to now, making this a very pretty chart. What would have made the chart better would have been BOP to have been green to max green the entire way since mid January. Even though the chart is very pretty, it is no where near perfect. Also, this is a solar momentum stock with no earnings or sales so I don’t necessarily recommend this for newbie emotional traders, even with management owning 24% of the company. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
