new Featured long position: CEL
CEL is breaking out of a very well-formed cup pattern, on very strong volume. This is one of the nicer IPO charts out there with all the great daily price action (lots of bullish candlestick patterns), the steady strong accumulation, and the positive to green BOP all over the chart since its debut. Some of the items that stand out on this chart is that the RS and moneystream lines are both hitting new highs well ahead of price today and the BOP has gone from neutral yellow to bullish green. Those positive technical developments, along with the near perfect nature of this cup breakout, make this a very nice chart. The fundamentals are very strong, with the EPS growing between 55% and 107% the past three quarters, sales growing between 3% and 23% the past six quarters, an impressive ROE of 28%, an EPS growth rate of 7%, a sponsorship rating of B, a timeliness rating of B, a composite rating of 96, an Acc/Dis rating of A-, an SMR rating of A, an EPS rating of 85, and YOY earnings estimates for gains of 53% and 10% in 2007 and 2008 respectively. Fund ownership has grown from 13 to 16 to 18 funds the past three quarters showing that the smart money is steadily growing interested in this story. Ownership also owns 65% of this stock. The stock is in a bit of a risky position this far away from the 50 dma but I want some here no matter what so I am going to chase a bit. But I recommend that most investors wait for a low volume pullback before buying too much of this one. Cut your first loss with a close below the 26.23 level and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
