The following summaries are designed to recap the recent action in the hand-picked stock ideas which were highlighted in the August 2003 issue of CANSLIM.net News in the  "Stocks to Watch in This New Market" section published on Sunday, August 2, 2003.  We have not normally posted updates so shortly after presenting new ideas, however with the recent action in the overall market turning more negative, we wanted to address the latest developments in these issues.  This update is our way of helping subscribers assess the action in these stocks.  

ESPD plunged through its 50-day line with above average volume on Thursday, but it bounced back impressively on Friday with even higher volume while receiving an upgrade by Jeffries & Co.  Note that the previous breakdown was also driven by a news event concerning a London lawsuit.  This action could be called a “shake-out”, and from this point on the stock may still be considered a decent purchase candidate.  The recovery is a clear sign of institutional support stepping up as this otherwise healthy looking stock trades near its 50-day line. 

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OVTI continues to act well, although it did reverse from new highs on Thursday with lighter volume.  Considering the action in the Semiconductor Index (SOX), it is doing fantastic.  Keep an eye out for any violation of the upward trend line for an early technical indication of weakness, but otherwise we’d stay the course.

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MATK has thus far been able to hold above its 50-day line, but it has broken an important upward trend line and it suffered a high volume loss on Wednesday (8/6/03) with no new news headlines.  We’d advise great caution if the 50-day line is broken on higher volume, and if there is a close lower than its recent low close at $43.93, which occurred on July 21^st.

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MRVL snapped back on Thursday after first plunging through its 50-day line, but on Friday the selling pressure continued, taking it well under that important short-term moving average.  This is certainly indicative of the action in the Semiconductor Index last week.  More critical support near $30 may soon be tested if pressure remains on the group, so use caution!

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AMHC hasn’t seen an above average volume day in the three weeks since it bounced off of its 50-day line, but it has slipped under it now.  Making a stand at the $30 level, and a rebound above its 50-day line would improve its outlook, while broader market weakness and particularly negative action healthcare stocks of late is not helping its chances of working out.

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