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    June       2009    CONTENTS
CURRENT    MARKET    CONDITIONS

A review of market conditions over the prior month - the important "M" in CAN SLIM®

Next Move Wins As Indices Walk The Line - Adam Sarhan, Registered Representative and Vice President of Investments with Source Capital Group (Member FINRA,SIPC)

The major averages enjoyed their third consecutive monthly advance in May, continuing the longest and steepest rally since the major averages peaked in October 2007 and the Bear Market began. Interestingly, the last time market averages enjoyed three consecutive winning months was in the fall of 2007.  The confirmed rally since the March 12, 2009 follow-through day has sent the tech-heavy Nasdaq Composite Index soaring +40%, the benchmark S&P 500 Index vaulting +38%, and the Dow Jones Industrial Average +31%. From the March low, the standout winner is the small cap Russell 2000 Index, surging a stunning +46%! As a result, each of the major averages have traced out very sharp "V" shaped patterns with small (2-week) handles. Normally, this kind of chart action is not a sign of a healthy intermediate- or longer-term sustainable rally.  This rally remains intact, however, leadership, a critical component of a successful rally, has proven rather elusive while the new highs list has been tightly contained.

PICTURED: The monthly chart of the benchmark S&P 500 Index shows every major bull and bear market over the past 10 years.

Political Data: B

The Obama administration just celebrated its first 100 days since its economic stimulus plan was signed. At this point, the market and the economy have reacted very positively to the package. Obama has had a very full plate since taking office, and during the last week of May he experienced his first real geopolitical threat. On Memorial Day, when the US market was closed, North Korea tested a nuclear weapon underground.  It sent a very strong message to the rest of the world that, by the end of the week, North Korea tested six more missiles.  Some consider the actions, effectively, an end to the 1953 armistice which suspended hostilities between North and South Korea and ended a very brutal war. Kim Jong Il, the leader of North Korea, appears to be desperate.  To say the least, it will be very interesting to see how the UN, China, and President Obama react to his aggression. On the economic front, it is encouraging to see the unprecedented fiscal and monetary policy maneuvers by the Obama administration over the past few months begin to take effect. More encouraging, we have seen a slew of economic and housing data suggesting that the brunt of the recession is behind us (more on that below). 

Economic Data: B

The market is telling us that "not so bad" is the new "good" as the major averages continue to react healthy to questionable economic data. At the beginning of the month, the Labor Department announced that US employers slashed -539,000 jobs in April which was better than the Street's forecast for over a -600,000 decline. The report showed that the unemployment rate jumped to +8.9%, which was the highest level since September 1983! April was the 16th consecutive month of job cuts in the US which pushed the total number of jobs lost during this recession (which began in December 2007) to -5.7 million. This is the largest decline of any recession going back to the Great Depression.

The ailing housing sector, which has been in its own private depression, began to show a few signs of continued strength last month. The National Association of Realtors said that purchases increased +2.9% to an annual rate of 4.68 million which matched forecasts. This was higher than the +4.55 million in March. The report showed that the median price skidded -15% from a year earlier which was the second-largest decline on record. A separate report showed that the massive decline in home values eased last quarter.  The Mortgage Bankers Association said mortgage delinquencies and foreclosures surged to fresh record highs in the first quarter. The S&P/Case- Shiller home-price index was released and plunged a whopping -18.7% from March 2008. The measure tanked -19% in January, which was the largest drop since data began in 2001. The market embraced the lackluster housing data, which initially surprised many investors.  The housing paradox, as explained in the Market Commentary section of the Tuesday, May 26, 2009 After Market Report (read here), simply states that lower housing prices will spark demand since home prices are becoming more affordable to the everyday buyer again. The belief is that the lower housing prices, coupled with record low mortgage rates, will help stem the decline and possibly spark demand that, in turn, helps stabilize prices.

Not all the news of late has been negative. The Commerce Department reported that durable goods orders, which are goods made to last at least three years, rose +1.9% from the previous month after a revised -2.1% decline in March. Elsewhere, the National Association for Business Economics (NABE) released a survey that showed the US economy will begin to expand in the third quarter. This has been the ongoing consensus since the recession began, and +74% of economists polled agree with that view. At the end of the month, the government said that first quarter gross domestic product (GDP) was revised up to a -5.7% annualized decline from the initial estimate of a -6.1% contraction. This was lower than the consensus forecast for a -5.5% decline. On the inflation front, the report's GDP price index was revised to an annualized +2.8%, which was lower than the initial estimate of +2.9% jump. Until the market takes out its March low, it believes that the brunt of this recession has passed.

On that note, one of the largest victims of this violent recession was General Motors Corp. (GM). At the end of May, it was a foregone conclusion that GM would file for Chapter 11 bankruptcy protection as soon June 1. Keep in mind that this is the same company who dominated the business landscape for most of the 20th century and who's name is included in the old axiom: "What is good for GM is good for America." Not only did this recession destroy the entire investment banking model as we once knew it, it also brought the mighty GM to its knees. From a contrarian's point of view, this means that the end is getting closer. 

Market Action (Price, Volume & Leadership): B

The underlying health of the major averages has improved markedly in recent weeks. However, high quality leadership has yet to emerge. The vast majority of the recent move was dominated by low-ranked stocks bouncing from egregiously oversold levels. History shows us that healthy bull markets begin when a new batch of high quality leaders breakout powerfully from sound bases. At this point, leadership is flimsy, as evidenced by the IBD 100 Index (a great proxy for leading stocks) which continues to woefully underperform the major averages.

A few leading stocks are working out, and some early leaders in the rally are building second-stage bases. Disciplined investors will look for fresh technical buy signals to be triggered if they manage to break above resistance in the next few weeks.

Turning our attention back to the major averages, they spent the latter half of May consolidating near their respective 200-day moving average (DMA) lines. Looking forward, the next move wins, meaning that if the market manages to breakout to the upside on higher volume, then odds favor that even higher prices will follow. Conversely, if support at recent lows is breached and the major indices sink to new lows on heavier volume, then even lower prices will be more likely to follow. The ongoing Market Commentary will let you know which of these two events occurs. Until either support or resistance is breached, this sideways consolidation may continue for many days or weeks. It is also important to note that a series of ominous distribution days have emerged over the past few weeks, which is not a good sign. However, the market has managed to shrug the institutional selling pressure off, keeping the indices' rally intact.  For now, the "M" criteria essentially says that healthy leaders still deserve the bullish benefit of the doubt.

Commodity markets surged last month as the dollar plunged.  While hope spread that the brunt of the recession has passed, crude oil surged nearly +30% last month.  Investors who rotated funds into crude-linked investments benefited as the dollar plunged, with the impact of the currency weakness, and the movement of money, both giving a hearty boost to oil prices. Other commodities fared well as Silver and Gold jumped +27% and +10%, respectively. In today's world of 24 hour news and instant information, it is imperative to follow markets outside of US equities for a complete investment outlook.

Data concerning nearly every capital market in the world is telling us that the economy may rebound in the latter half of the year, and we would be fools to argue with the tape. However, we should note that the equity markets have already expressed this view.  While the major averages are currently encountering resistance near their 200 DMA lines, on average, the volume patterns (on weekly and monthly charts) have dried up as the market advanced, which is not a good sign for the near term. Caution is advised, and investors should remain extremely selective with new buys. 

Remember that the ongoing Bear Market is one of the worst in history, and it has been 19 months since the major averages topped out (Oct '07).  Handle the decisions on a stock-by-stock basis, and if you see the right kind of leadership begin to emerge, take a small position and keep a close stop. Conversely, if leadership does not emerge, do not force a trade. Remaining patient and flexible has served us extremely well over the years. As always, we will continue to objectively analyze price and volume to better understand the market's underlying health.  Never argue with the tape, and always keep your losses small.

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Adam Sarhan is a Registered Representative and Vice President of Investments with Source Capital Group (Member FINRA,SIPC) and offers a suite of services for individual and institutional investors. Mr. Sarhan earned a BA and MA in Political Science from Florida Atlantic University and he is well versed in capital markets. In addition, Mr. Sarhan completed the CAN SLIM® Masters Program presented by Investor's Business Daily. Investors with a significant financial interest may inquire about opening an account by calling the office locally at 954-785-1990 or 1-888-237-8399 or emailing to asarhan@sourcegrp.com. Further information is always available upon request. Contact us if you know anyone that may have an interest in receiving this or any of our other products.

 
 MARKET'S    LEADING    GROUPS  
You stack the odds of making a winning trade in your favor by choosing a leading company in a leading industry group, so when buying stocks be sure to choose one with plenty of company, that is a stock trading among a group of several strong-performing peers!  Familiarize yourself with the list of the top performing industry groups and leading stocks listed below.  These symbols and related companies ARE NOT intended to be construed as a list of timely and proper choices based on the CAN SLIM® investment program.   These pace-setters in each of the currently top-ranked groups listed may not presently fit within the guidelines we suggest adhering to.  The point is that it is always wise to choose leaders in the same or a very similar business to that of the strongest stocks in the market.  Find companies that resemble other strong stocks' leadership characteristics.
 
RANK GROUP NAME GROUP LEADERS
 SYMBOL ,% FROM 52WK HIGH (AS OF 5/29/2009 CLOSE),
# OF DAYS MAKING NEW HIGHS ON THE LEADERS LIST
1 COMPUTER SOFTWARE AND SERVICES CERN, -2.9%, 6 | QSII, -19.5%, 4 | SXCI, -0.1%, 4 | PEGA, -4.2%, 3 | SMSI, -2.9%, 3 |  HMSY, -8.2%, 2 | LFT, -4.1%, 2 | SNDA, -0.7%, 2 |  3 ADDITIONAL ISSUES TOTALED ANOTHER 3 APPEARANCES FOR A TOTAL OF 29 APPEARANCES FOR THIS GROUP.
2 ELECTRONICS CUB, -2.1%, 8 | ANEN, -2.4%, 5 | NVEC, -7.0%, 5 | FOR A TOTAL OF 15 APPEARANCES FOR THIS GROUP.
3 DIVERSIFIED SERVICES LINC, -9.6%, 4 | CAST, -3.7%, 2 | CFL, -4.5%, 2 | URS, -4.7%, 2 | VPRT, -4.3%, 2 |  FOR A TOTAL OF 12 APPEARANCES FOR THIS GROUP.
4 COMPUTER HARDWARE STEC, -6.9%, 8 | STAR, -1.2%, 2 | TSRA, -5.5%, 0 | FOR A TOTAL OF 10 APPEARANCES FOR THIS GROUP.
4 FOOD / BEVERAGE HANS, -16.7%, 5 | GMCR, -4.8%, 3 | CVGW, -0.0%, 1 | PAS, -0.1%, 1 | FOR A TOTAL OF 10 APPEARANCES FOR THIS GROUP.
6 MATERIALS AND CONSTRUCTION MYRG, -0.1%, 4 | ORN, -0.4%, 4  | EME, -37.7%, 2 | FOR A TOTAL OF 8 APPEARANCES FOR THIS GROUP.
6 WHOLESALE HWKN, -0.2%, 4 | INT, -4.7%, 4  | NRGP, -3.8%, 0 | FOR A TOTAL OF 8 APPEARANCES FOR THIS GROUP.
8 METALS AND MINING IAG, -1.3%, 7 | DROOY, -2.5%, 0  | OPYGY, -25.1%, 0  | FOR A TOTAL OF 7 APPEARANCES FOR THIS GROUP.
9 INTERNET NTES, -1.1%, 5 | RAX, -3.2%, 1 | BIDU, -27.1%, 0 | FOR A TOTAL OF 6 APPEARANCES FOR THIS GROUP.
10 RETAIL ARO, -8.8%, 2 | CTR, -8.6%, 1  | FUQI, -5.4%, 1 | PTRY, -23.3%, 1 | FOR A TOTAL OF 5 APPEARANCES FOR THIS GROUP.


Notes:

  • This is a list of the strongest groups based on the total number of new highs achieved in the group. For example, 1 stock making 10 new highs is the same as 10 stocks making 1 new high.
  • The source of the data is the cumulative appearances on the CANSLIM.net BreakOuts Page for the month.
  • If there were less than four stocks in the list of stocks making new highs then the top stocks in that group were added to the list.

- CANSLIM.net News Staff
SPECIAL REPORT ON THIS MONTHS MARKET LEADING GROUPS SECTION        
Market Leading Group Report for This Month / CANSLIM.net Staff

One of the major principles of the investment system we support at CANSLIM.net is to concentrate buying activities in the leading industries. Quoting William J. O’Neil on Page 200 of "How to Make Money in Stocks, A Winning System in Good Times or Bad", it has been observed that “The majority of leading stocks are usually in leading industries. Studies show that 37% of a stock’s price movement is directly tied to the performance of the industry group the stock is in. Another 12% is due to strength in the overall sector.”

The Market’s Leading Groups (MLG) section of CANSLIM.net News is a tool to help our members identify the industry groups that have performed the best.  This is a monthly snapshot, and it considers the current price performance from the strongest stocks on the CANSLIM.net Leaders List over the past month. We highlight the top groups by recognizing the specific stocks reaching new 52-week highs. If the stocks identified are close to their 52-week highs, one can acknowledge a strong group, and one may be wise to focus their attention on these strong groups. Conversely, if stocks identified in the MLG section are significantly off their respective 52 week highs, one can conclude that the group was strong at the beginning of the month, but the group (and/or market) has been losing favor - and should probably be avoided until strength returns. CANSLIM.net members can follow group performance daily in the newspaper and by looking at the Industry Group Watch section in the daily CANSLIM.net After-Market Update.

Given the past and current market conditions, a study of the Market Leading Groups section now highlights just how severe the lack of leadership in stocks has truly been. In total, there were only 53 individual stocks from the CANSLIM.net Leaders List making news highs during the month of May for a total 135 occurrences after just 33 issues totaled 108 appearances in April. Generally, in a healthy market environment, any group having a total of only 29 appearances might not even show up in the "Top 10" groups.  This is further proof of just how poor the market performance has continued over the past month.

The above is highlighted to illustrate that this section should NOT be used for any buying considerations at this time. CANSLIM.net continues to advise caution in adding any new positions until the market has a confirmed follow through day AND there are some stocks making new 52 weeks highs and exerting leadership in the market. While investors are watching for new leadership, the market's New Highs and New Lows totals are highlighted each evening in the Market Commentary portion of the CANSLIM.net After-Market Update. The quality and quantity of issues listed in the daily CANSLIM.net Mid-Day BreakOuts Report is another helpful indicator as to the overall market's strength.  Simply taking the few minutes to scan the reports each day is all it takes to stay informed.

- CANSLIM.net News Staff
INVESTING   FOR THE NEW MILLENNIUM    
Leadership Expansion Needed To Fuel A Healthy Summer Rally - Kenneth J. Gruneisen, CAN SLIM® Certified, Registered Principal, Source Capital Group, Inc. (Members FINRA, SIP
 
A perfect demonstration arguing that small cap stocks can deliver more volatility and potentially greater bang for investors' bucks is provided by a quick study of the percentage gains thus far in the major averages as they have rallied up from their Bear Market lows.  The Small Cap Russell 2000 Index's +46% rally certainly beats the blue chip Dow Jones Industrial Average's (DJIA) +31% rally!  The RUT fell -60% from Jul '07 to Mar '09, versus the DJIA falling -54% from Oct '07 to Mar '09. You should already know that small-cap stocks with exceptionally strong earnings growth are the primary focus of the investment system used by our team in Lighthouse Point. 

While the major averages spent the latter half of May consolidating near their respective 200-day moving average (DMA) lines, the technical challenge that lies immediately ahead is whether or not each of the major indices can muster the strength to rally above their respective 200 DMA lines. The Nasdaq Composite Index is the only one of the three major averages currently trading above that important long-term average. The S&P 500 Index is the next index that appears capable of rallying above its 200 DMA, meanwhile the DJIA has more work to do to get there.  As a general rule, at least 2 of the 3 major averages should be trading above their 200 DMA lines for the overall market (the M criteria) to be considered "healthy", and leadership (stocks making new highs) needs to expand.  Another important indicator for the market's health includes the Advance/Decline lines.  For the Nasdaq exchange and even more so for the NYSE, have been showing encouraging signs since mentioned in the April INM article (read here). 

Watching the major indices' action with respect to their 200 DMA lines has provided a most useful read on the market's health in the past. During the current decade's first Bear Market that trimmed about 50% off the benchmark S&P 500 Index, in mid-2001, military action against the Taliban was among the concerns on the landscape that made it difficult for investors to place great confidence in stocks. There was also an energy crisis effecting California, with power blackouts causing multi-billion dollar losses.  Technical glitches occasionally disrupted trading on the exchanges, including a week long shutdown of the markets following the tragic events of 9/11/01.  Comments from President Bush occasionally stirred buying interest in the equities market, such as when he urged Congress to pass an economic stimulus package.  And the Fed was in the middle of its most aggressive rate-cutting campaign ever, which caused the occasional "buying panic."  Regardless of the headlines, or the efforts of all the king's horses and all the king's men, there was not a very healthy market environment for investors to work with until much later on, when the major averages were finally making headway above their 200 DMA lines.

Ultimately, investors will need to muster a lot of courage to buy when the situations may merit doing so.  Companies must have the ability to perform in the earnings departments -where it counts the most!  Doubt still lingers as to whether any sustainable upward move and Bull Market is possible.  Until more leadership is evident, patience will be needed. Caution and discipline are also critical. Meanwhile, any subsequent distributional pressure showing up in the major indices may soon give rise to questions about the possibility of equities retesting further into territory near the lows set in March. 

While some top rated stocks have already managed to break out, many of the best potential leaders are still in the process of building out their bases. Over the next several weeks one might expect more definitive leadership to emerge. Much of the risk has been wrung out of the market through a horrible Bear Market, yet it is still very important to remain disciplined and be selective. Our aim is to be ready to grab the best stocks as they break out of sound bases, but before they are over-extended from support and due for pullbacks. Bargain hunting is discouraged, because history has shown that odds of success are greater when sticking with high-ranked leaders.  Rather than looking to pick up beaten down companies in the “damaged goods” category, keep a watch on companies that are able to sustain and extend their recent gains.
 
Kenneth J. Gruneisen -  Has successfully completed the CAN SLIM® Certification Program.  Mr. Gruneisen is a Registered Principal and manages a Source Capital Group (Member FINRA,SIPC) branch office offering personalized assistance. Investors with a significant financial interest in equities may inquire about opening an account by calling the office locally at (954) 785-1990 or 1-888-237-8399 or emailing to kgruneisen@sourcegrp.com  Further information is always available upon request. Contact us if you know anyone that may have an interest in receiving this or any of our other reports.

The recommendations made by CAN SLIM® certified individuals are their own and may not be attributed to the CAN SLIM® Certification Program, William O'Neil & Co., Investor's Business Daily or their affiliates. The CAN SLIM® Certification indicates only that the individual has successfully completed the CAN SLIM® Certification Program. CAN SLIM®, William O'Neil & Co., Investor's Business Daily and any of their affiliates are in no way responsible for any loss or damage caused as a result of the services provided by these individuals.

Comments contained in the body of this report are technical opinions only and are not necessarily those of Source Capital Group, Inc. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities. Source Capital Group, Inc. is a FINRA/SIPC member firm.

Source Capital Group, Inc.

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Email: kgruneisen@sourcegrp.com
 
STOCKS    TO WATCH   IN   THIS NEW    MARKET

Our staff of experts analyzes and then compiles these detailed summaries of selected stocks which warrant further investigation by investors. These stocks show strong upside potential based on the CAN SLIM® investment system. Ideal buy candidates are also identified for members throughout each month, appearing in yellow in CANSLIM.net's Mid-Day Breakouts Report, or occasionally featured in timely CANSLIM.net Stock Bulletins which are promptly emailed to all members.

 Pending News May Prompt Shakeout Worth Watching

Shanda Interactive Entertainment

- Adam Sarhan, Contributing Writer, www.CANSLIM.net  

Ticker Symbol:  SNDA (NASDAQ)

Industry Group: Internet- Content

Shares Outstanding: 71,800,000

Price: $57.62 5/29/2009  

Day's Volume: 991,900 5/29/2009

Shares in Float:  23,000,000

52 Week High: $58.00 5/29/2009 

50-Day Average Volume: 1,249,600

Up/Down Volume Ratio: 1.5

Pivot Point: $53.95 4/16/2009
 (high plus $0.10)

Pivot Point +5% = Max Buy Price:
$56.65

Web Address:
http://www.snda.com/

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CANSLIM.net Company Profile: Shanda Interactive Entertainment Limited, an interactive entertainment media company, operates online games. It was founded in 1999 and is based in Shanghai, the People's Republic of China. It offers a portfolio of entertainment content, including massively multi-player online role playing games.  The stock resides in the Internet-Content group which is presently ranked 31st on the 197 Industry Groups list which is inside the much-preferred top quartile of groups, satisfing the L criteria. The number of top-rated funds with an ownership interest has grown from 42 funds in June '08 to 67 funds as of March '09, an encouraging sign of increasing institutional interest (the I criteria). Strong quarterly earnings growth satisfies the C criteria. Its dip in 2006 is a flaw which was previously noted as a concern in its otherwise impressive and strong annual earnings history (the A criteria). See additional concerns below. 

What to Look For and What to Look Out For: The stock is currently trading above its maximum buy price, and caution and patience are suggested. SNDA is scheduled to report earnings on Wednesday, June 3rd, after the close of trading. Street estimates are mostly in the range of 72-74 cents per share, and it has a history of beating expectations.  Near earnings news, investors may expect that volume and price action can be very volatile, and another currently Featured Stock, Netease.com Inc (NTES) provides a great recent example.  It is important to remain disciplined, and chasing it after its impressive rally from $19.75 on December 1st may not be a prudent move. Instead, look for this stock to pullback and offer investors a chance to accumulate shares below its maximum buy price ($56.65). Bear in mind that it may eventually test important near-term support at its 50-day moving average (DMA) line, much the way Longtop Financial Technoogies Ltd (LFT) recently did (while maneuvering to offer shares) after a comparable advance in the same timeframe. This past week, Shanda said that, subject to SEC clearance, it would offer shares in its online gaming unit "as capital-markets conditions permit."  The number of shares the subsidiary will sell, and price, were not yet determined.

Of the few favorable looking leaders showing up in recent CANSLIM.net reports, Chinese firms have obviously enjoyed a heavy weighting.  Caution is advised due to the inherent risk of international exposure, as geo-political news or events could prompt the entire group of foreign stocks to suddenly trade drastically down or up. While the current leadership is noted in China-linked stocks, and it could be an ongoing phenomenon; investors are reminded to make disciplined buys and sells always.  Mindray Medical International Ltd. (MR) and China Medical Technologies Inc. (CMED) are two fine examples of former leaders hailing from China.  Both companies continued producing impressive quarterly sales revenues and earnings increases for a long time afterwards, but they slumped badly since being dropped from the CANSLIM.net Featured Stocks list in 2008.

Keep in mind that much of a stock's success depends on the broader market's (the M criteria) ability to sustain a meaningful rally, otherwise 3 out of 4 stocks are likely to struggle in the event that the latest rally-attempt encounters more distributional pressure. Confirming gains backed by more than the minimum +50% above average volume guideline would provide a reassuring "follow through" that might reaffirm its recent breakout. No overhead supply can hinder the stock's ability to rally, which is an encouraging sign.

Technical Analysis: In March it was noted in several mid-day reports as it challenged and broke out above its January chart highs near $34. From its stage 1 base breakout, it rallied +56% before pausing to consolidate. The stock spent a little over a month building its second stage base ($46-54) before its May 19th gain on heavy volume.  That session's close was off well off its high and below the pivot point, which is considered a technical flaw in its latest breakout, which has been followed by lighter volume gains as the stock has gotten extended beyond its "max buy" level.


 
  FEATURED STOCKS MONTHLY    REVIEW      

In the table below you will find all of the noteworthy stocks featured by CANSLIM.net in the prior month.

Symbol/Company Name/Industry Group

As of 5/29/2009
(Close)

 Last

 

 Chg Date
Featured		 Price
When Featured

(First)
(Last)		 % Gain / Loss Since Feat.
(First)
(Last)		 Resources Monthly Summary Notes


 As of 5/29/2009
(Close)
GMCR - NASDAQ
 Green Mtn Coffee Roastrs

FOOD & BEVERAGE - Processed & Packaged Goods     		 $83.24 $0.95 1/1/2008
1/04/2009		 $40.70
$39.09
 		 +104.5%
+112.9%
 

C A N S L I M,  StockTalk, News, Chart,
 Daily Graphs Online  Stock Checkup IBD Graphs  SEC, Zacks Reports  

 Posted a small gain on light volume for its second best close ever. Recently consolidating in a tight range with volume drying up, forming a possible advanced "high tight flag" type pattern. A "breakaway gap" on 4/30/09 followed a strong quarterly financial report and news of a partnership with Wal-Mart Stores. Traded up as much as +123.59% since featured at $39.09 in the January 2009 CANSLIM.net News (read here).
HMSY - NASDAQ
 H M S Holdings Corp

COMPUTER SOFTWARE & SERVICES - Healthcare Information Service     		 $35.15 $0.86 2/20/2009 $34.08
 		 +3.1%
 

C A N S L I M,  StockTalk, News, Chart,
 Daily Graphs Online  Stock Checkup IBD Graphs  SEC, Zacks Reports  

 Closed at its session high with a gain on better volume. Volume totals have been drying up in recent weeks while forming a downward sloping high handle. Little overhead supply is there to act as resistance for this Commercial Services - Healthcare firm. The group's Relative Strength rank has slipped from A in March to a D- now, which is a concern. Investors' odds are usually better when choosing leaders within a leading industry group.
ILMN - NASDAQ
Illumina Corp

DRUGS - Biotechnology    		 $36.71 $0.88 5/03/2009 $38.14
 		 -3.7%

C A N S L I M,  StockTalk, News, Chart,
 Daily Graphs Online  Stock Checkup IBD Graphs  SEC, Zacks Reports  

 Rallied to a close back above its 50 DMA line. Consolidating in a very tight trading range for nearly 3 months. This high-ranked stock has yet to produce confirming gains above its pivot point to trigger a proper technical buy signal. Recently featured in the May 2009 issue of CANSLIM.net News (read here).
LFT - NYSE
Longtop Financial Tech Ads

COMPUTER SOFTWARE & SERVICES - Business Software & Services    		 $27.56 $0.11 4/02/2009 $22.19
 		 +24.2%
 

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 Held its ground following a gap up and considerable gain on the prior session after reporting another strong quarter. Prompt repair of its recent 50 DMA line violation, and its gap up, are indicative of solid institutional (the I criteria) support and buying demand. This Chinese Computer Software firm recently filed a registration of approximately 16 million shares for resale, and it also revealed a planned acquisition of another Chinese service provider.
NFLX - NASDAQ
Netflix Inc

SPECIALTY RETAIL - Music & Video Stores     		 $39.42 $0.88 1/29/2009 $37.13
 		 +6.2%
 

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 It has been struggling under its 50 DMA line for 3 weeks, since earlier technical sell signals were noted. It needs to rally above that important short-term average for its outlook to improve. Posted gains of as much as +35.31% since it was first featured in yellow at $37.13 in the 1/29/09 CANSLIM.net Mid-Day Breakouts Report (read here).
NTES - NASDAQ
 Netease.Com Inc Adr

INTERNET - Internet Information Providers   		 $34.58 $0.33 3/31/2009 $26.75
 		 +29.3%

 

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 Inched to another new all-time high just above its "max buy" level. Its 5/28/09 gap up and considerable gain with +79% above average volume confirmed a technical buy signal as it rose above its pivot point. Indications of institutional (the I criteria) buying demand have been noted after earnings news on 5/20/09 a shakeout tested support near its 50 DMA line. First featured at $26.75 in the 3/31/09 CANSLIM.net Mid-Day Breakouts Report (read here). This high-ranked Chinese Internet - Content firm was also summarized in greater detail including an annotated graph in the April 2009 issue of CANSLIM.net News (read here).
NVEC - NASDAQ
N V E Corp

ELECTRONICS - Semiconductor - Specialized     		 $40.00 $0.86 3/13/2009 $33.85
 		 +18.2%
 

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 Quietly consolidating above important support at its 50 DMA line. It stalled following a 5/07/09 gap up and new 52-week high. Earnings per share rose +38% over the year ago period, yet sales were up just +14% and still rather minuscule.
SYNA - NASDAQ
Synaptics Inc

COMPUTER SOFTWARE & SERVICES - Information Technology Service 		 $35.12 $0.03 5/18/2009
 		 $32.58

 		 +7.8%
 

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 SEC, Zacks Reports

Consolidating under its "max buy" level following gains on heavier volume. No resistance remains due to overhead supply. First featured in yellow in the May 18, 2009 mid-day report (read here). The number of top-rated funds owning its shares rose from 123 in June '08 to 184 in March '09, which is good news concerning the I criteria. Strong earnings and sales revenues growth in the 4 latest quarterly comparisons satisfies the C criteria. Its annual earnings (the A criteria) history showed a dowturn in 2006, leaving concerns, but it followed that up with strong growth the next 2 years.
TNDM - NASDAQ
Neutral Tandem Inc

TELECOMMUNICATIONS Wireless Communications  		$29.00 $0.10 3/2/2009
 		 $18.89

 		 +53.5%
 

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Perched near all-time highs, it recently found support near its 50 DMA line. Impressive "positive reversal" on 5/14/09 was noted as a sign of institutional support. A new confirming buy signal requires gains above its pivot point backed by heavy volume. Gapped up on 4/30/09 for a new all-time high after reporting solid quarterly sales and earnings increases. Traded up as much as +58.02% since first featured at $18.89 in the 3/02/09 Mid-Day BreakOuts Report (read here).

 
 
EDITOR'S LETTER                  

Keeping Up-To-Date - Frank DeBold

DON'T MISS CANSLIM.NET'S 2ND QUARTER 2009 CANSLIM.net WEBCAST

We are proud to announce that Adam Sarhan will soon present the next quarterly CANSLIM.net Webcast for Q2 2009  – “How to Navigate During Volatile Times”, which is scheduled for Wednesday, June 24, 2009, from 8 to 9 PM, Eastern Standard Time. Note that participation in CANSLIM.net Webcasts does require a purchase in addition to your active membership, and you are invited to enjoy special "early bird" savings by securing your seat now (click here).

Mr. Sarhan, who has completed the Masters program, will be sharing much of his valuable expertise with all participants during this information-packed event. This is another opportunity to improve your mastery and build upon your existing knowledge of successful investing techniques. The seminar includes educational content to familiarize you with the skills and important tools for utilizing this proven investment program in today’s market. The WebCast also includes detailed analysis of the current market conditions, leading industry groups, and leading stocks.

The WebCast will begin by focusing on the overall market environment and what it means for you. This section addresses the all-important “M” with information you can use for successful investing! The current market conditions portion will discuss the five major indices that are followed each day in CANSLIM.net reports; namely, the Dow Jones Industrial Average, the Nasdaq Composite, the S&P 500 Index, the S&P Small Cap 600 Index, and the Russell 2000. In addition, the S&P 400 Mid Cap Index will be included, as it is yet another important index. Also included will be a discussion of the current leading industry groups focusing on timely and pertinent information you can use! This will be followed by a discussion of several of the best current buy candidates from the leading groups with a detailed analysis, both fundamental and technical, for the selected stocks. As usual, we will discuss the pivot points and specific buy and sell signals for each of these stocks. Presented in this way, you will be able to follow and better understand what the experts look at and look for when selecting a stock to be featured in CANSLIM.net reports. Lastly, there will be a "Question & Answer" venue with your specific investing questions answered by CANSLIM.net's experts. This online WebCast will be presented via a user-friendly audio and visual web interface, and a complete recorded version will allow folks with conflicting schedules to view the presentation in its entirety.

GET YOUR FREE COPY OF WILLIAM J. O’NEIL's NEW 4TH EDITION OF THE BOOK!
 

William J. O’Neil’s new edition of “How To Make Money In Stocks” was due to be released on June 11, 2009, yet via Amazon.com the book is already shipping!  The staff at CANSLIM.net will be reviewing this 4th edition carefully in order to ensure we are supporting the latest ideas as well as the traditional concepts presented in the past.  An overview of this new edition book can be seen here. Renew or extend your CANSLIM.net membership before June 24, 2009 (click here) and you can get a personal copy of the book for FREE before it hits store shelves.  If you have a friend or relative you are introducing to this proven method of successful investing, the new book will give them a firm foundation in the concepts.  You can order a membership for anyone and simply send an email to customercare@canslim.net asking to have the membership you purchase transferred to your recipient; providing only their name and email address for our records.

 

NEW NUMBERS FOR YOUR DAILY AFTERMARKET REPORT.
 

We welcome your input on how we can make the site more helpful and user friendly, and we are excited about additional upgrades you'll be seeing soon!  You may already be noticing recent updates and enhancements to the format of our website and reports such as the CANSLIM.net After-Market Update.  We have fielded a number of inquires over the past years concerning the totals it reports and why they may differ occasionally from what is available from other sources.  As the staff has recently investigated the results presented by various sources, we were again somewhat frustrated to be unable to get clarification on the numbers being reported by some and why they have differed from the same indices results reported by other sources.  Most of the questions arose in the reporting of NYSE volume results. CANSLIM.net is currently reporting the data for actual trading on the NYSE for NYSE volume totals. Like the volume totals, the New 52 Week Lows/Highs, Advancers/Decliners, and numbers associated with the major indices' daily changes reported are as of the time of publishing by CANSLIM.net and may not include any revisions made after that time.

 

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