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CURRENT |
MARKET |
CONDITIONS |
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A review of market conditions over the prior
month - the important "M" in
CAN SLIM®
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Nasdaq Composite and Russell
2000 Index Lead The Major Averages
- Adam Sarhan,
Registered Representative and Vice President of Investments with Source
Capital Group (Member FINRA,SIPC)
The major averages enjoyed modest gains in October as a confluence of
factors helped stocks advance while Wall Street celebrated two
important anniversaries. It was encouraging to see the current
confirmed rally, which began with the August 29, 2007 follow-through
day, remain intact. The fourth quarter opened strong as the major
averages celebrated the 5th anniversary of the
October 2002 low. In the middle of October, the major averages
negatively reversed after reaching new high territory, just before the
20th anniversary of 1987's record stock market crash. The bulls
quelled the bearish pressure on Monday, October 22, 2007, when they
showed up to defend support, and produced a positive reversal which
helped stocks rally for the remainder of the month. Another
important event was that the Federal Reserve decided to cut rates by
another quarter point when they concluded their 2-day
meeting on October 31, 2007.
Charts courtesy
www.stockcharts.com
PICTURED: The tech-heavy Nasdaq
Composite continued to lead its peers, gaining +18.38% year-to-date.
It is on track for one of its best annual performances of the decade!
The Nasdaq surged to a fresh multi-year high after the Federal Reserve
cut rates by a quarter point at its October 2007 meeting.
Several important themes continued working last month. As
previously mentioned, the current rally remained intact. The
underlying economic growth remains strong, which has helped drive the
market's healthy gains we have experienced. Many believe that US
economic growth will wane markedly in the near future, however, it is
important to take what these so-called market pundits say with a grain
of salt. It is true that there are pockets of weakness in the economy,
but the aggregate picture remains strong. The government reported that
third quarter GDP grew by an impressive +3.9%
which surpassed earlier estimates. The unexpected acceleration in the
third quarter was largely due to increases in exports, consumer
spending, and business investment. These strong sectors of the economy
helped compensate for another plunge in the ailing housing sector.
Another important investment theme that prevailed last month was
the continue decline in the US Dollar. The ramifications of a falling
dollar could be felt in several areas of the global economy. It is
important to note that this is not a new phenomenon, as the greenback
has been falling for the past several years. Remember that the direct
benefactors of a falling dollar are commodity prices. Since
most commodities are valued in dollars, when the dollar falls, their
prices rise. This underlying relationship has played a major role in
the enormous commodity bull market that has been experienced in recent
years. Three of the most prominent benefactors have been the euro (FXE),
crude oil (USO), and gold (GLD). The following table clearly
illustrates their progress over the past five years.
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10/31/2002 |
10/31/2007 |
%
Change |
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Euro/USD |
0.9903 |
1.4488 |
+46% |
|
Crude Oil |
27.22 |
94.53 |
+247% |
|
Gold |
317.75 |
796.59 |
+150% |
Exports and corporate earnings have also prospered
from the falling dollar. Normally, exports rise when the dollar falls
because the prices of US goods and services get "cheaper" which in
turn, helps raise demand. There are two simultaneous events that also
help corporate earnings. The most obvious of the two is that
international sales, which currently comprise a large portion of total
sales at most multi-national corporations, are now worth more than
sales generated in dollars. In essence, corporations benefit from the
spread between the dollar and the foreign currency where the "sale"
occurs. The second way corporate earnings benefit from a falling
dollar is the additional sales that are generated from foreigners that
visit the US. These new consumers enjoy what we like to refer to as an
"immediate sale" when they purchase dollar denominated goods and
services. The "immediate sale" concept is best explained by looking at
any item that is sold in both Europe and the US. For example, if
Apple's highly popular i-Phone is priced at 399
euros in Europe and $399 in the US, (which is
approximately a -40% discount), most people, given
the option, will prefer to do their shopping in the US. This simple,
yet often overlooked principle, has played a major role in corporate
earnings in recent years, especially due to increasing online sales.
Companies that specialize in online sales like Google (GOOG) , Amazon
(AMZN) and EBay (EBAY) have seen international sales surge in recent
years.
The problems in the subprime and credit related
markets continued to plague many investors last month while heads
continued to roll in the related areas. One of the most
publicized debacles was when Merrill Lynch (MER) reported its latest
quarterly results in October. Stan O'Neal, Merrill Lynch & Co.'s
Chairman and CEO was relieved of his duties less than a week after the
brokerage firm reported its largest quarterly loss in the firm's
93-year history! The stock, and a handful of other
financial stocks, plunged to new 52-week lows in the wake of the
credit crunch.
The global economic boom continues to thrive, which
has helped the major averages and a slew of stocks soar to new highs
in recent weeks. As of this writing, the top 5
industry groups are: Chemicals-Fertilizer, Internet Content, Building
Heavy Construction, Computer Manufacturers, and the Energy- Other. A
good majority of the market's current leaders reside in these
groups. This emphasizes the importance of focusing on the strongest
stocks in the strongest groups when searching for new buy candidates.
The number of distribution days swelled in the latter
half of October. As of this writing, there are 6
distribution days for the benchmark S&P 500 Index and 5
for the Nasdaq Composite. Remember that four or more distribution days
in a short amount of time is not a healthy sign.
For the quarter and month, the major averages enjoyed
modest gains. The Nasdaq Composite emerged as the clear
leader, outpacing its peers while rallying +5.83%.
The small cap Russell 2000 Index was second, with a handsome
+2.80% profit. The benchmark S&P 500 Index rose
+1.48%. Meanwhile the large cap Dow Jones Industrial Average
trailed its peers with a modest +0.25% gain. For the
year, the market averages have enjoyed healthy gains. Continuing in
the recent trend, tech and large cap stocks scored the largest gains
this year, with the Nasdaq Composite and Dow Jones Industrial Average
jumping +18.38%, and +11.77%
respectively. The S&P 500 Index rose +9.24%, while
the small-cap Russell 2000 Index, where the vast majority of growth
stocks of interest under the system's guidelines reside, rose
+5.12%. As always, trust the market and never argue with the
tape!
 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
investors. Mr. Sarhan earned an MA in Political Science
from Florida Atlantic University and he is well versed
in capital markets. Investors with a significant
financial interest may inquire about opening an account
by calling the office locally at (561) 767-6692 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.
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MARKET'S |
LEADING |
GROUPS |
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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 10/31 CLOSE),
# OF DAYS MAKING NEW HIGHS ON THE LEADERS LIST |
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1 |
COMPUTER SOFTWARE & SERVICES |
TRAK,
-2.5%, 14 | VMW,
-0.3%, 12 | ANSS,
-6.5a%, 11 | ACTU,
-2.2%, 8 | NTCT,
-0.2%, 8 | RADS,
-11.0%, 8 | VDSI,
-40.2%, 8 | BOBJ,
-0.2%, 7 | BPHX,
-6.3%, 7 | HMSY,
-2.0%, 6 | SYNA,
-0.0%, 6 | 29 OTHER
ISSUES
TOTALED 74
APPEARANCES FOR A TOTAL OF 169 APPEARANCES FOR THIS
GROUP. |
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2 |
ENERGY |
DNR, -0.2%, 12 |
KWK, -0.0%, 10 |
MUR,
-7.7%, 10 |
FTK, -7.6%, 9 |
SNP, -7.3%, 8 |
HK,
-3.2%, 7 |
FST,
-0.2%, 7 |
RRC,
-2.5%, 7 |
HAL,
-6.0%, 7 |
ANW,
-15.8%, 6 |
CLB,
-0.4%, 6 |
25 OTHER ISSUES TOTALED 76
APPEARANCES FOR A TOTAL OF 165 APPEARANCES FOR THIS GROUP. |
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3 |
DIVERSIFIED SERVICES |
EXPO, -0.8%, 12
|
HDB,
-0.0%, 11 |
EDU, -2.9%, 10
|
HUGH, -0.6%, 9 |
MORN, -0.8%, 8
|
WOOF, -0.1%, 8 |
CPLA,
-4.6%, 7 |
CVD, -2.1%, 7
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TISI, -3.9%, 6
|
NDAQ, -2.7%, 6 | STRA, -1.8%, 6
|
GPRO, -2.5%, 6 |
ICLR,
-5.4%, 6 |
19
OTHERS
TOTALED 53
APPEARANCES FOR
A TOTAL OF 155 APPEARANCES FOR
THIS GROUP.
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4 |
ELECTRONICS |
SPWR, -1.8%, 17 |
DNEX, -0.4%, 10 |
FLIR, -4.6%, 8 |
WMS, -3.7%, 7 |
ESLT, -0.3%, 7 | OYOG,
-2.1%, 7 |
WAT, -0.1%, 7 |
MTD, -3.3%, 7 | STP, -5.3%, 6 |
22 OTHER ISSUES TOTALED 64 APPEARANCES FOR A
TOTAL OF 140 APPEARANCES FOR
THIS GROUP. |
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5 |
MANUFACTURING |
AXYS, -2.1%, 11
|
ROP, -0.0%, 10 |
AME, -0.0%, 10
|
ABB, -0.4%, 9
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EMR, -5.5%, 6 |
B, -0.4%, 6
|
PH, -0.7%, 6 |
18 OTHER ISSUES TOTALED 59
APPEARANCES FOR
A TOTAL OF 117 APPEARANCES
FOR THIS GROUP. |
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6 |
TELECOMMUNICATIONS |
TEF, -0.2%, 9 | MBT,
-5.4%, 8 |
LLL,
-0.0%, 7 |
CHL, -0.3%, 6 |
VIP, -5.5%, 6 |
PHI, -5.4%, 6 |
17
OTHER ISSUES TOTALED 53
APPEARANCES
FOR A TOTAL OF 95 APPEARANCES
FOR THIS GROUP. |
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7 |
INTERNET |
GOOG, -0.0%, 12 |
BIDU, -0.8%, 9 | VOCS, -5.3%, 9 |
OTEX,
-0.6%, 6 |
CRM, -2.0%, 6 | FLWS, -10.7%, 6 |
SINA, -3.3%, 6 |
9 OTHER
ISSUES
TOTALED 25
APPEARANCES FOR A TOTAL OF 79 APPEARANCES FOR
THIS GROUP.
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8 |
HEALTH SERVICES |
ISRG, -3.8%, 12 |
WCG, -81.2%, 8 |
HOLX, -1.9%, 8 | QGEN, -0.5%, 6 |
SYK, -4.9%, 6 |
ESRX, -1.3%, 6 | 10
OTHER ISSUES TOTALED 32
APPEARANCES FOR A
TOTAL OF 78 APPEARANCES FOR
THIS GROUP.
|
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9 |
METALS AND MINING |
MTL, -5.4%, 12 |
POT, -0.8%, 10 |
SLT,
-0.7%, 7 |
SID, -0.9%, 7
|
HSVLY, -12.8%, 5
|
12 OTHER ISSUES
TOTALED 31
APPEARANCES FOR
A TOTAL OF 72 APPEARANCES
FOR THIS GROUP. |
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10
|
DRUGS |
LIFC, -1.9%, 10
|
IVGN, -1.3%, 7
|
CELG, -12.5%, 7 |
VIVO, -3.4%, 6 |
OMPI,
-9.0%, 6 | 14 OTHER ISSUES
TOTALED 36
APPEARANCES FOR
A TOTAL OF 72 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.
- If there were less than four
stocks in the list of stocks making new highs then the top five
stocks in that group were added to the list.
-
CANSLIM.net News Staff |
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INVESTING FOR |
THE
NEW |
MILLENNIUM |
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The Consumer Is The Market's Perpetual Hero - Kenneth J. Gruneisen,
CAN SLIM® Certified, Registered Principal, Source Capital Group, Inc.
(Members FINRA, SIPC)
October turned out to be a lot better month
than many had feared. But the problem is, many investors tend to trade
based upon what they think might happen instead of trading based on what
they actually see happening in the market. Virtually every media outlet
you could turn to seemed to make mention of the 20-year anniversary of
the October 19, 1987 crash. Meanwhile there was no crash taking place
during October 2007. Instead, stocks rallied.
Oil prices have grabbed a lot of headlines
lately, sparking more fears for investors. Consumers are supposedly
left with less cash these days due to higher energy costs, and that is
one of the big reasons why so many pundits are predicting that the stock
market is “sure” to get into trouble at some point. I won’t deny that
this argument has merit. However, consumers have been expected to
curtail their spending year after year, and yet they keep right on
spending. In my humble opinion, your best bet as an investor is still
to go with a concentrated portfolio of superior growth stocks.
I recently heard a commentator on CNBC point
out consumers have no problem spending - even if they don’t have the
money! Why? Banks are willing to keep lending them more money! Why?
Banks get rich on the various fees and interest charges that millions of
consumers pay. A certain number of defaults are expected, and the
overwhelming bulk of consumers do not completely default on loan
payments. Sure, news of record defaults and bankruptcies catch our
attention, but most financial institutions are dealing with their bad
loans perfectly well. We don’t see a long list of financial
institutions failing right now, do we?
Whenever financial firms do get into
trouble, guess who bails them out? Other financial firms bail them
out! Then, they ultimately pass along the cost of the problem to their
customers in the form of (you guessed it) higher fees and interest
rates. So, indeed, the consumer is forever the hero that comes to save
the day. We really shouldn’t expect that to ever change.
The Fed has made their stance clear, and
they will continue to provide liquidity and stoke economic growth.
Unfortunately, their policy does not seem to show concern for the fact
that the US dollar can’t hold its ground relative to other currencies.
Since your dollar’s buying power is quickly
eroding, and particularly because it has been falling at a much faster
pace than usual, you should definitely be concerned about finding ways
that you can multiply the dollars you have. There has been no better
money multiplier than the stock market.
If you are reading this, I probably don’t
need to spend any energy convincing you to buy stocks. You are already
on board with that program, right? So, we should jump straight into the
finer details, like which stocks, and when to buy and sell. Sound good?
Unfortunately, the problem we soon encounter is that, from a legal
compliance standpoint, securities representatives cannot make open buy
or sell recommendations and assume they can apply to all investors.
Without knowing anything about an investor’s profile, an account can
only be self-directed. That is the reason why online trading firms
offering low cost transactions do not ask for anywhere near as much
personal information about their clients as a typical full service
broker requires - because the online trading firm does not give any
specific input or direction to the customers. They are strictly order
handlers taking “unsolicited” orders.
Plenty of times I have suggested contacting
my office if you need additional help with your portfolio. My team at
Source Capital is a well-qualified group of licensed representatives
with the ability to make the appropriate suggestions to help you reach
your investment goals. We can help you with those finer details if you
call.
 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.
|
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Source Capital Group, Inc. |
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Members FINRA/SIPC
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We Are:
- Securities
Broker/Dealers
- Full Service
Professionals
- Investment Bankers
- Ready to Assist
You! |
We Offer:
- Stock & Bonds
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- Portfolio Analysis
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Kenneth
J. Gruneisen
665 S.E. 10 Street, Suite 201
Deerfield Beach, FL 33441-5634
954-785-1990 1-888-237-8399
Email:
kgruneisen@sourcegrp.com
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STOCKS
TO |
WATCH IN
THIS |
NEW MARKET |
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Our staff of experts researches 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.
Watch For Confirming Gains On Volume
|
C N H Global NV |
- Adam Sarhan |
|
Ticker Symbol:
(NYSE: CNH) |
Industry Group:
Machinery- Farm |
Shares
Outstanding: 237,000,000 |
|
Price:
$65.58 10/31/07 |
Day's Volume:
321,000 10/31/2007
|
Shares in Float:
73,500,000 |
|
52 Week High:
$66.86 10/31/07
|
50-Day Average
Volume:
373,700 |
Up/Down Volume
Ratio:
1.1 |
|
Pivot Point:
$64.00
9/27/2007 high plus .10 |
Pivot Point +5% =
Max Buy Price:
$67.20 |
Web Address:
www.cnh.com |
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CANSLIM.net Company Profile
CANSLIM.net Company
Profile: CNH Global N.V. is a subsidiary of Fiat
Netherlands Holding N.V. that engages in the manufacture and
distribution of agricultural and construction equipment worldwide.
Its Agricultural Equipment segment primarily manufactures agricultural
tractors, combine harvesters, hay and forage equipment, seeding and
planting equipment, tillage equipment, and sprayers, as well as grape,
cotton, coffee, and sugar cane harvesters. Its Construction Equipment
segment manufactures heavy equipment, such as crawler excavators,
wheeled excavators and loaders, graders for various applications,
dozers, and articulated dumpers. It also offers light construction
equipment, including backhoe loaders, skid steer loaders, compact track
loaders, and telehandlers. Its Financial Services segment provides
financial service products, including retail financing for the purchase
or lease of the company's new and used products, as well as for the
other manufacturer's products; and other retail financing programs. This
segment also provides wholesale financing to its dealers. CNH Global
sells and distributes its products primarily through a network of
dealers and distributors in approximately 160 countries
worldwide. The company was founded in 1991 and is based in Amsterdam,
the Netherlands. The stock's Composite Rating, which is a combination
of all the other readings, stands at a very healthy 98.
Meanwhile, the Relative Strength (RS) line is at a new all-time high
while the Relative Strength rank is 96. The
company's Earnings Per Share (EPS) rating is 98.
Earnings have grown at a very healthy clip over the past four quarters
and four years. Sales revenues growth was below the +25%
guideline in three of the past four quarters but growth has accelerated
nicely. Its solid quarterly earnings increases well above the
+25% guideline and steady growth for the past four consecutive
years (good A criteria) helps overcome that
shortfall. Return on Equity of 7% is under the
17% guideline, which raises some additional concerns. CNH
resides in the Machinery- Farm group which is currently ranked
12th of out the 197 Industry Groups covered in
the paper, satisfying the L criteria.
What to Look For and
What to Look Out For: Look for CNH to through
with additional gains on heavy volume to help confirm its
nascent breakout. Volume is a critical component of institutional
sponsorship, and it would be a compelling sign of demand from the
institutional crowd if shares continued to advance on above average
turnover. A close back under its prior chart highs in the $63-64
would prompt concern, especially if there are damaging losses
on heavier than average volume. If the stock rolls over and
closes below its July high close of $58.35 (on
7/19/07) then concerns would be raised by the technical deterioration
under those prior significant chart highs, and if it falls back into its
previous base then odds would favor it spending even more time
consolidating. Always limit losses per the 7-8% sell
rule, and never hold a stock if it falls more than that much from your
purchase price.
Technical Analysis:
The stock demonstrated bullish action when it broke out to
new 2007 highs on 9/26/07 with heavy volume behind its considerable
gain. During the recent period of consolidation it found support above
its 50-day moving average (DMA) line, which is healthy action. Then it
gapped up for a considerable gain on 10/23/07, which triggered a
technical buy signal when it traded above its $64 pivot
point on heavy turnover, however it closed off that session's high and
below its pivot. Its negative reversal on 10/30/07 was a sign it was
meeting some resistance as it tried to rally into new high ground, yet
it was somewhat encouraging to see CNH gap up and close in the upper
half of its range on on 10/31/07 for its best close in several years.
Breakaway Gap From Cup With Handle Pattern
|
MasterCard Inc. |
- Adam Sarhan |
|
Ticker Symbol:
(NYSE: MA) |
Industry Group:
Financial
Services- misc |
Shares
Outstanding: 135,000,000
|
|
Price:
$189.91 10/31/07 |
Day's Volume:
20,211,800 10/31/07
|
Shares in Float:
65,500,000 |
|
52 Week High:
$194.78 10/31/07
|
50-Day Average
Volume:
2,981,600 |
Up/Down Volume
Ratio:
1.1 |
|
Pivot Point:
$169.42
10/11/2007 high plus .10 |
Pivot Point +5% =
Max Buy Price:
$177.89 |
Web Address:
www.mastercard.com |
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CANSLIM.net Company Profile
CANSLIM.net Profile:
MasterCard Incorporated develops and markets payment solutions,
processes payment transactions, and provides consulting services to
customers and merchants. It provides transaction processing and other
payment-related services, as well as facilitates the authorization,
clearing, and settlement process of the transactions. It manages and
licenses payment card brands, including MasterCard, MasterCard
Electronic, Maestro, and Cirrus. As of December 31, 2006, MasterCard
Incorporated served approximately 25,000 financial
institutions worldwide. The company was founded in 1966 and is
headquartered in Purchase, New York. The company sports a very healthy
Earnings Per Share (EPS) rating of 97 and a strong
Relative Strength (RS) rating of 95. Return on Equity
of 26% is above the 17% guideline.
The company has managed to increase its earnings by above the
+25% guideline in each of the past four quarterly comparisons
versus the year earlier (satisfying the C criteria) and
its annual earnings history (the A) is solid. MA
resides in the Financial Services - Misc which is currently ranked
55th out the 197 Industry Groups
covered in the paper, placing it just outside of the much preferred top
quartile. However, other strong stocks in the group such as Nasdaq Stock
Market Inc. (NDAQ) and Intercontinental exchange (ICE) help satisfy the
L criteria. The number of high ranked mutual funds that
own this stock has swelled from 92 in the quarter
ending December '06 to 163 in the quarter ending Sept
'07, helping satisfy the I criteria.
What to Look For and What to Look Out For:
The stock experienced a break-away gap when it surged past
its $169.42 pivot point and $177.89
maximum buy price after reporting its latest quarterly earnings on
October 31, 2007. MA has cleared all technical resistance and odds
favor further price gains. Ideally, this stock would consolidate on
lighter volume over the next few days and weeks, offering investors a
chance to accumulate shares at more attractive prices before following
through with additional gains on higher volume. Breakaway gaps are one
exception where it is permissible to buy a stock more than +5%
above a pivot point, however buying at more than +10%
higher prices is not prudent since extended stocks can easily pull back
and trigger a 7-8% stop loss. Patience may allow
shares to be accumulated on a lighter volume pullback toward prior chart
highs which should now serve as a key technical support level. About
40% of successful breakouts pull back and test support
near their pivot point and/or prior chart highs. Keep in mind that MA
appeared in the October 31, 2007 CANSLIM.net Mid-Day Breakouts
Report describing its healthy action (read
here). Undisciplined buys can hurt your investment results.
Caution and a disciplined sell strategy could be required, and concerns
would definitely be raised if the stock falls more than 7-8%
below your purchase price.
Technical Analysis: On Wednesday,
October 31st, 2007, MA triggered a technical buy signal as it surged
above its $169.42 pivot point from a cup-with handle
type pattern with gains backed by very heavy volume more than 6 times
its average daily total. Whenever a stock explodes out of a sound base
and vaults to new highs in such a powerful fashion, the action suggests
that there is very strong institutional sponsorship (the I
criteria). The recent volume patterns have been bullish, which is best
indicated by the fact that on its weekly chart there are numerous up
weeks on above average volume, but not many down weeks on above average
volume.
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SPECIAL
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ARTICLE
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Pullbacks Off Highs Are Worth
Studying
- Harlan Pyan -
Registered Representative and Vice President of Investments with
Source Capital Group (Member FINRA,SIPC)
In its simplest form POH stands for Pullbacks Off
Highs. Our job as investors and traders is to buy the very best
stocks at the lowest risk entry points possible. Don’t chase them,
let them come to you. Bill would say that buying right solves half
your selling problems. For me, one of the strongest patterns I scan
for are what I call a POH. In up trending markets, it is all about
buying stocks in clearly defined up trends hitting higher highs and
above the 50 day that are pulling back off highs. Of course there
are many variations to this pattern, but nonetheless it is all about
trending and trading in the direction of the overall trend; Don’t
fight the tape as they say. Also remember, as with the C
and A criteria, where bigger is better, the bigger
the pattern the better.
Every day I scan for this pattern and put the names
in my watch list. 90% of being successful in the
markets is based on being prepared. In order to give you a better
idea as to what these look like from a chart perspective below are a
few examples of recent the POH that have triggered.
Now it is your turn. See if you can spot the POH
long side trigger in the following chart.
Below is a company that was recently featured that
may be in the process of forming a POH with a twist. The "twist"
being that it is also an initial pullback after a fresh breakout
from a recent base.
In summary, when looking at any chart the first
things to always ask yourself are:
What is the overall trend of this stock? Is the
stock in an Uptrend? Down trend? No Trend? Is the stock I am
looking at above its 50 day moving average line? Is the stock
pulling back off its highs while still being in a clearly defined
uptrend? These are all questions I ask myself before I take a trade.
Do yourself a favor and ask the same questions - they help keep me
centered, and ought to do the same for you.
If you’d like to learn more about this pattern or
any other technical patterns feel free to contact me and I will walk
you thru some of the more advanced aspects of them.
Be Aware: It is still earnings
season! More often than not we do not trade ahead of earnings
announcements unless the position is hedged, but that (hedging) is
getting into a topic to be covered in a future article. 50/50 odds
are horrible odds, and let’s face it, earnings announcements can be
quite a volatile time. Make sure over the next couple of weeks you
pay close attention to when earnings are due on any issue you are
looking at.
|
|
Harlan Pyan :
Harlan Pyan is a Registered Representative and Vice
President of Investments with Source Capital Group (Member
FINRA,SIPC) Mr. Pyan specializes in Technical Analysis,
swing trading long and short and has been an advocate of the
CAN SLIM® investment system as a trader and investor for over
15 years. Mr. Pyan resides in Franklin, Wisconsin. In his
free time he’s an avid Musky fisherman and collector of old
beer and soda advertising as well as being well versed in
antiques and collectibles markets.
Investors with a significant financial interest may inquire
about opening an account by calling
414-418-9796. Further
information is always available upon request. Please contact
us if you know anyone that may have an interest in receiving
this or any of our other products.
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SPECIAL
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ARTICLE
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Profitable Ways to
Implement the Covered Call
-
Jeff Neal
- Senior Writer, Options Strategist & Profit Strategies Radio Show
Market Correspondent
The covered call is
often the first type of strategy an options trader attempts because
they usually come from a stock-investing environment. The covered
call is a way to generate income from the portfolio, and it can also
be used to lock in some profits. It is important for the trader to
understand the mechanics of the covered call before being able to
consistently profit from this approach.
Basically, a covered call is a strategy where the option strategist
buys stock in increments of 100 shares, and for
every 100 shares sells a call option contract
against it. When the trader sells the call, he or she is giving
somebody else the right to buy the stock at a fixed price. The word
covered comes from the fact that the seller of the calls is not at
risk if the stock climbs higher, as opposed to someone who sells
uncovered or naked calls and can lose an unlimited amount if the
stock moves higher. With covered call writing this upside risk is
eliminated because you will always be able to deliver the shares, no
matter how high the stock climbs.
It is important to note that there are some risks in the covered
call strategy. The position only covers you if the stock climbs
through the strike price you sold the call at but it does not
protect you from the losses incurred from a large drop in the
underlying stock price. The covered call lowers the cost basis of
the stock just by the amount of premium received. Any drop below
that new cost basis would show up as losses to the position.
Covered call writers usually fall into two different camps with two
distinctly different objectives. One such type is the strategist who
wants use the strategy to generate income against stock they plan to
hold regardless. The other type of covered call writer employs the
strategy for the sole objective of receiving high premiums.
This income seeking approach allows the investor to receive a little
downside hedge and then getting paid to sell the stock at a price
they see favorable. Assuming it is a fundamentally solid stock, the
investor would be more willing to assume more downside risk. In
essence, the investor would hold the stock whether options were
available or not.
Now, the approach that just seeks out high premiums has several
pitfalls and can be very dangerous. Usually, traders who are making
their selections based only on high premiums do not truly appreciate
or understand the downside risk of the covered call strategy. Many
times, when they are selecting based just on high premium, they do
no further investigation on the quality of the stock—or, for that
matter, do not even know what the company really does. In addition,
the issues that have these high premiums are often very speculative
stocks that are vulnerable to large price declines if things do not
go exactly right.
It is far better and effective if the investor concentrates on the
quality of stock first before looking at premiums. If you select
fundamentally superior stocks that you would want to own for at
least the intermediate term, then writing covered calls can be a
very profitable strategy that lowers the cost basis of the stock.
However, if you’re just seeking premium and ignore the inherent
strength or weakness of the stock, then you may have to endure some
market disasters with devastating impacts to your account equity.
Jeff Neal
- Senior
Writer, Options Strategist & Profit Strategies Radio Show
Market Correspondent
Listen to Jeff at
www.ProfitStrategiesRadio.com
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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 10/31/2007
(Close) |
Last |
Chg |
Date
Featured |
Price
When Featured
(First)
(Last) |
% Gain / Loss Since
Feat.
(First)
(Last) |
Resources |
Monthly Summary Notes |
|
ABAX -
NASDAQ
Abaxis
Inc
DRUGS - Diagnostic Substances |
$29.32 |
$1.15 |
10/25/2007 |
$27.80 |
+5.5%
|
C
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This issue quickly got extended
beyond its max buy level as soon as it was featured in the
10/25/07 CANSLIM.net Mid-Day BreakOuts Report with an annotated
graph. It broke out from a cup-with-handle type pattern to new
all-time highs with gains on heavy volume after its latest
earnings report (read
here). Earnings were above the +25% guideline in 3 of the 4
most recent comparisons versus the year earlier.
|
ACM -
NYSE
Aecom
Technology Corp
BUILDING - Heavy Construction |
$33.77 |
$(1.07) |
9/17/2007 |
$28.84 |
+17.1%
|
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Consolidating well above its 50 DMA
line, with prior chart highs in the $29-30 the
next important chart support levels. Its steep run up produced
+20% gains in less than 3
weeks since it rose from a 9-week base.
Normally a breakout stock that gets off to a strong start like
that should be held for 8 weeks minimum unless
it badly breaks down. Recent analysis and annotated graph in the
9/27/07 Featured Stock Update section (read
here). |
AMAC -
NASDAQ
American Medical Alert
DIVERSIFIED SERVICES - Security &
Protection Services |
$9.73 |
$0.24 |
7/1/2007 |
$7.99 |
+21.8%
|
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Positively reversed from earlier
lows after another test of support at its 50 DMA line, closing
near its session high for a gain on light volume. That left it
21 cents under its best close ever. Key chart
support is at the May chart highs near $8.25,
and a close below its old high close could trigger a worrisome
technical sell signal. Deceleration in its sales revenue growth
sequentially in recent quarters is a concern. A new technical
buy signal may be triggered by a breakout above its July 30th
high of $10.09 on at least +50%
above average volume. First featured at $7.99 in the July
'07 CANSLIM.net News with an annotated graph (read
here.) |
AMX -
NASDAQ
American Medical Alert
DIVERSIFIED SERVICES - Security &
Protection Services |
$65.39 |
$0.04 |
10/11/2007 |
$67.63 |
-3.3%
|
C
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This stock was dropped from the
Featured Stocks list on 10/25/07 after a disappointing earnings
report and weak action. The Featured Stock Update section
of the 10/23/07 CANSLIM.net After Market Update offered
additional analysis and an annotated graph (read
here) after AMX was first featured on Thursday, October 11,
2007 (read
here) |
ATNI -
NASDAQ
Atlantic
Tele Network
TELECOM - Services |
$35.91 |
$(0.14) |
9/3/2007 |
$33.48 |
+7.3%
|
C
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Volume is drying up while it is
consolidating just above support at its 50 DMA line. Scheduled
to report earnings after the November 1, 2007 close. Prior chat
highs in the $31 area are its next important
support. Featured at $33.48
in the September '07 CANSLIM.net News with an annotated graph
(read
here). Disciplined investors had several days to study this buy
candidate and accumulate shares after it broke out and then
tested support at its pivot point, like 40% of
successful breakouts typically do - as discussed in the
'Featured Stock Update' section of the 9/10/07 CANSLIM.net After
Market Update with an annotated graph (read
here). |
BCSI -
NASDAQ
Blue
Coat Systems Inc
COMPUTER HARDWARE - Networking &
Communication Dev |
$40.59 |
$(1.40) |
9/24/2007 |
$44.63
|
-9.1%
|
C
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Recently found support near prior
chart lows in the $38 area, but sank under its
50 DMA line again with a lighter volume loss. Concerns have been
raised by its technical deterioration under its pivot point and
prior chart highs in the $44 area, which
negated its latest breakout. Further damaging losses beyond the
10/26/07 lows on above average volume would prompt it to be
dropped from the Featured Stocks list. Disciplined investors
know to limit losses by selling any stock if it falls
7-8% or more from their purchase price. The 10/10/07
Featured Stock Update section had detailed analysis and a fresh
annotated graph when it triggered its latest technical buy
signal (read
here). |
BIDU -
NASDAQ
Baidu
Com Inc Ads
INTERNET - Internet Information
Providers |
$382.49 |
$11.49 |
10/30/2006
9/11/2007 |
$94.05
$225.58 |
+306.7%
+69.6% |
C
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One year after it was first featured
at $94.05 in the 10/30/06 CANSLIM.net Mid-Day BreakOuts
Report when it was triggering an initial technical buy signal,
this high-ranked leader has traded up more than +309%
since that initial appearance (read
here). Along the way it went through a multi-month
consolidation under its 50 and 20 DMA lines, then later returned
as a noteworthy leader. Most recently featured again in yellow
at $225.58 in the 09/11/07 CANSLIM.net Mid-Day
BreakOuts Report as it was hitting new highs from an 8-week
base period (read
here). |
BLUD -
NASDAQ
Immucor Inc
DRUGS - Diagnostic Substances |
$32.25 |
$0.17 |
5/5/2005
9/13/2007 |
$22.91
$35.18 |
+40.8%
-8.3% |
C
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Holding its ground near its longer
term 200-day moving average, while the next chart support is at
prior chart lows in the $26-27 area. Its
Relative Strength rank has dropped to low 60's,
under the 80+ guideline. Gapped down on
10/26/07 for a considerable loss on very heavy volume on news of
an FTC probe, triggering technical sell signals as it violated
its 50 DMA line and prior chart highs in the $34-35
area. It failed to make headway after it gapped up 10/04/07,
which was featured in the CANSLIM.net Mid-Day BreakOuts Report
(read
here) This stock has risen more than 7-fold since it was
first featured in the October 2002 CANSLIM.net Special Report
(read
here). |
BOBJ -
NASDAQ
Immucor Inc
DRUGS - Diagnostic Substances |
$59.91 |
$0.10 |
5/5/2005
9/13/2007 |
$22.91
$35.18 |
+161.5%
+70.3% |
C
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Gapped up on 10/03/07 and was
featured in yellow in the CANSLIM.net Mid-Day BreakOuts Report
as it traded above its July high, rallying beyond resistance in
the $46-47 area (read
here). Confirmed its technical breakout with a gain for a
new high on twice its average volume on 10/4. Holding its ground
since its considerable gap higher on 10/08/07 when it agreed to
a $6.77 billion buyout offer from Germany's
SAP. On 10/19/2007, this stock was removed from the Featured
Stocks list. |
CBEY -
NASDAQ
Cbeyond
Inc
TELECOMMUNICATIONS - Wireless
Communications |
$39.12 |
$0.30 |
5/1/2007
|
$34.78 |
+12.5% |
C
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Its closes under its 50 DMA line
have raised concerns. Its latest bullish breakout failed back
below its July high closes, raising concerns previously noted.
See detailed analysis and annotated graph in Featured Stock
Update section of the 10/01/07 CANSLIM.net After Market Update
(read
here). Its considerable gain was backed by +60%
above average volume as it is rose above its pivot point and
cleared all chart resistance in the $42 area. First featured in the May 2007 edition of the
CANSLIM.net News (read
here) as it was trading just below its pivot point of
$34.58. |
CELG -
NASDAQ
Celgene Corp
DRUGS -
Drug Manufacturers - Major |
$66.00 |
$0.92 |
10/27/2006 |
$50.85 |
+29.8% |
C
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Sell signals were triggered after
the company reported its latest quarterly results and gapped
down on 10/25/07 for a considerable loss, violating its 50 DMA
line and prior chart highs in the $66 area. The
high volume loss is a sign of distributional selling. Covered in
the 08/22/07 CANSLIM.net After Market Update with an annotated
graph (read
here). First featured in the 10/27/06 CANSLIM.net Mid-Day
BreakOuts Report at $50.85 (read
here).
|
CIR -
NYSE
CIRCOR
INTL Inc
MANUFACTURING - Industrial Equipment
& Components |
$50.23 |
$1.13 |
6/19/2007 |
$40.53 |
+23.4% |
C
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Gain on more than twice average
volume helped it close the month at its best ever close. Support
was recently found above its August highs and 50 DMA line. On
10/05/07 it gapped up and closed with a considerable gain on
nearly twice its average volume, confirming a technical buy
signal noted in that evening's CANSLIM.net After-Market Update
(read
here). It quickly climbed toward its max buy level. |
CMED -
NASDAQ
China
Medical Tech Ads
HEALTH SERVICES - Medical
Instruments & Supplies |
$46.65 |
$0.44 |
9/14/2007 |
$37.71 |
+23.7% |
C
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A string of 3
straight gains on above average volume helped it recently
trigger a convincing technical buy signal recently as it rose
from a 20-month long cup-with-handle shaped pattern. Recently
found prompt support near its 50 DMA line and prior chart highs
in the $37 area. Gapped up for considerable
gains 10/15/07 on heavy volume after Korean FDA approval of
system. Featured in yellow in the 9/14/07
CANSLIM.net Mid-Day Breakouts Report with an annotated graph
(read
here) as it was rising out of an 8-week
base on more than twice its average daily volume. Further
details provided in a CANSLIM.net Stock Bulletin on 9/16/07 with
a headline ''High-Ranked Chinese Medical Firm Showing
Strength'' (read
here). |
CMG -
NYSE
Chipotle
Mexican Grill A
LEISURE - Restaurants |
$139.00 |
$5.50 |
10/26/2007 |
$131.36 |
+5.8% |
C
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Reported solid earnings that topped
views and traded up to new all-time highs with gains on heavy
volume, nearing its max buy level. This high-ranked leader's very
strong close on 10/26/07 triggered a technical buy signal as it
rose above its latest pivot point after its earlier appearance
in the CANSLIM.net Mid-Day BreakOuts Report (read
here). Following considerable gains, its recent climb was
marked by three pullbacks of about 10-20%, a characteristic of
the ascending base pattern. Solid earnings increases of greater
than +25% in the 6 latest quarters satisfies the C criteria.
|
CPLA -
NYSE
Cappela
Education Company
DIVERSIFIED SERVICES - Schools |
$62.00 |
($0.05) |
8/22/2007 |
$49.19 |
+26.0% |
C
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Trading in a tight range for the
past 4 weeks. Due to report earnings on Nov. 1,
2007. It is extended beyond the max buy
price after its 8/17/07 breakout. Investors could have
accumulated shares as it pulled back and tested support near its
latest pivot point ($47.62). The 9/17/07
CANSLIM.net After Market Update's Featured Stock Update section
included updated analysis and a fresh annotated graph (read
here). First featured at $49.19 in the
08/22/07 CANSLIM.net Mid-Day BreakOuts Report when charging to
an all-time high with a considerable gain backed by nearly twice
its average volume. |
CRM -
NYSE
Salesforce.Com
Inc
INTERNET - Internet Software &
Services |
$56.37 |
$2.62 |
10/01/2007
|
$51.32
|
+9.8%
|
C
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Gain on about average volume for its
second best close of all-time. Bounced after testing support
near prior chart highs in the $50 area. Featured in the October '07
CANSLIM.net News (read
here). Heavy volume is a critical component of buyable
breakouts, and volume was strong as it rose above prior chart
highs near $48-50. It has been more than10
weeks since it had a loss on above average volume, meanwhile
there have been numerous up days on above average volume. |
CRNT -
NASDAQ
Ceragon
Networks Ltd
TELECOMMUNICATIONS - Communication
Equipment |
$18.21 |
($0.25) |
10/01/2007
|
$18.70
|
-2.6%
|
C
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Holding up well since posting a
considerable gain on heavy volume 10/22/07, rising from support
near its 50 DMA line after reporting its latest strong quarterly
earnings. Struggled since announcing plans on 10/02/07 for an
additional share offering - which often has the effect of
hitting the brakes. See the Featured Stock Update section of the
10/02/07 CANSLIM.net After-Market Update for additional analysis
and an annotated graph (read
here). Featured in the October '07 CANSLIM.net News (read
here). |
CROX -
NASDAQ
Crocs
Inc
CONSUMER NON-DURABLES - Textile -
Apparel Footwear & Accessories |
$74.75 |
$2.66 |
1/30/2007
8/26/2007 |
$25.99
$58.99 |
+187.6%
+26.7% |
C
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Traded to new all-time highs with a
considerable gain backed by +68% above average
volume. Following its 10/31/07 close it reported earnings and
traded considerably lower in the after-hours. Its positive
reversal on 10/22/07 was a recent sign of healthy institutional
support near its 50 DMA line and prior chart highs in the
$61 area that were once a stubborn resistance
level. Late in the 9/24/07
session it triggered a technical buy signal with action that
helped satisfy the guidelines with a new high close on gains
backed by +73% above average volume. This
lifted it above resistance it had encountered in the $60
area for the past 8 weeks. Featured in the
8/26/07 Special Report titled ''7 Stocks That Should Now Be
On Your Watch List'' with an annotated graph (read
here). |
CTRP -
NASDAQ
Ctrip.Com
Intl Adr
LEISURE - Resorts & Casinos |
$56.36 |
$2.52 |
10/29/2007
|
$56.35
|
+0.0%
|
C
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S
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Gain on above average volume for its
second best close ever, promptly bouncing after a quick pullback
under its pivot point. Number of top-rated funds owning an
interest improved from 49 in Jun '07 to
58 in Sept '07. Due to report earnings on Nov 7, 2007. CTRP triggered a technical buy
signal on 10/29/07 with a considerable gain and strong close on
+68% above average volume. It was featured in
the 10/29/07 CANSLIM.net Mid-Day BreakOuts Report (read
here). It has a solid sales revenues and earnings growth
history (good C and A). Rose from a base-on-base type chart
pattern after it recently completed additional share offerings.
|
CYNO -
NASDAQ
Crocs
Inc
CONSUMER NON-DURABLES - Textile -
Apparel Footwear & Accessories |
$38.01 |
$0.39 |
6/1/2007
10/1/2007 |
$34.92
$39.31 |
+8.8%
-3.3% |
C
A N
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L
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Due to report earnings on November
1, 2007. Concerns were raised as it recently sank under prior
chart highs near $38-39 triggering technical
sell signals, and yet it actually closed last week a penny above
its old June 20th high close of importance. Featured in yellow
in the 10/01/07 CANSLIM.net Mid-Day BreakOuts Report (read
here) as it triggered a technical buy signal by hitting new
all-time highs with gains coming on three times average volume,
rising straight up from the bottom of an approximately
11-week cup shaped pattern. |
DLB -
NYSE
Dolby Laboratories Inc
ELECTRONICS - Diversified
Electronics |
$41.46 |
$0.32 |
10/17/2007 |
$39.95 |
+3.8% |
C
A N
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Gain on more than twice average
volume for a new high. Found support recently after testing
prior chart highs in the $38-39 area, a key
support level now. Bullish action was noted in the
10/17/07 CANSLIM.net Mid-Day BreakOuts Report along with an
annotated graph (read
here). Strong earnings increases of much greater than
+25% in the past 8 quarterly
earnings comparisons versus the year earlier period thoroughly
satisfy the C criteria. Sales revenue history
is showing acceleration. Number of top-rated funds owning an
interest rose from 74 in Dec '06 to 99
in Sept '07, which shows institutional demand (the I
criteria). The Household-Consumer Elec group is ranked poorly,
however it does include at least one strong leader, Nintendo Co
Ltd Adr (NTDOY) to help satisfy the L criteria. |
EDU -
NYSE
New
Orientl Edu&Tech Ads
DIVERSIFIED SERVICES- Education &
Services |
$89.52 |
$1.61 |
9/24/2007 |
$59.96 |
+49.3% |
C
A N
S
L
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The recent gains on heavy volume
leave it very extended from a sound base. It has shown
persistent strength since its 10/15/07 gap up for a considerable
gain, when strong earnings news helped it hit a new all-time
high with volume 5 times its average daily
total. Covered in the Featured Stock Update section of the
CANSLIM.net After-Market Update on 9/28/07 (read
here), it blasted to a new all-time high on 9/25/07 after an
11-week consolidation, closing near its session
high for a gain on +94% above average volume. It
has a small float of 13.9 million shares with
management owning a 47% stake - keeping them
motivated to build shareholder value.
|
FMCN
-
NASDAQ
Focus Media Holdings Ads
MEDIA - Advertising Services |
$62.00 |
$1.12 |
5/21/2007
9/25/2007 |
$45.04
$57.00 |
+37.7%
+8.8% |
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Proposed an additional share
offering recently, then charged to a new all-time high on
10/29/07 with a considerable gain on slightly above average
volume. Recently pulled back toward prior highs, but stayed well
above important chart support in the $53 area.
The 10/08/07 Featured Stock Update section of the CANSLIM.net
After Market Update showed updated analysis and an annotated
graph (read
here). Featured in yellow in the 9/25/07 CANSLIM.net Mid-Day
BreakOuts Report as it gapped up from a 10-week
cup shaped base with a considerable gain backed by huge volume
(read
here). |
GCOM -
NASDAQ
Globecomm
Systems Inc
TELECOMMUNICATIONS - Processing
Systems & Products |
$15.44 |
$0.34 |
10/14/2007 |
$15.13 |
+2.0% |
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Continues to consolidate in a
buyable range on lighter volume above support at its pivot point
and prior chart highs. A considerable gain on 10/15/07 with
volume doubling its average daily trading volume confirmed the
recent technical buy signal. Featured at $15.13
in a 10/14/07 CANSLIM.net Stock Bulletin (read
here). |
GES -
NYSE
Guess
Inc
CONSUMER NON-DURABLES - Textile -
Apparel Clothing |
$51.39 |
$1.35 |
1/4/2007
10/17/2007 |
$33.41
$55.83 |
+53.8%
-8.0% |
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Hovering just above its 50 DMA line.
Previously noted ''Loss on about average volume raises
concerns as the stock sinks under its pivot point. It would be
healthy for it to promptly find support and not sink further
under highs in the $53-54 area.'' The
Featured Stock Update section of the 10/22/07 CANSLIM.net
After-Market Update included analysis with an annotated graph
(read
here). Bullish action was noted in the
10/17/07 CANSLIM.net Mid-Day BreakOuts Report (read
here). It traded to new all-time highs then retreated a lot,
yet had a solid gain with volume +73% above
average. Strong earnings and sales history (good C and A
criteria). Technically broke out with a heavy volume gain for a
new high on 10/15/07. The Retail - clothing /shoe group is
poorly ranked but includes several strong performing issues like Lululemon (LULU). |
GME -
NASDAQ
Gamestop Corp Cl A
RETAIL - Electronics Stores |
$59.22 |
$1.72 |
8/23/2007 |
$46.22 |
+28.1% |
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Trading in a tight range for the
past several weeks while its 50 DMA line catches up. Positively
reversed on 10/22/07 from earlier lows near its 50 DMA line.
Reassuring signs of institutional buying demand (the I
criteria) include the number of top-rated funds owning an
interest increasing from 193 in Dec '06 to
273 in Sep '07. It has also stubbornly held its
gains since its 8/23/07 breakaway gap up when it was featured in
the CANSLIM.net Mid-Day BreakOuts Report (read
here) while trading at $46.22. More details were
noted in the 8/23/07 CANSLIM.net After Market Update with an
annotated graph (read
here). Investors should avoid chasing stocks too far above
their pivot point. |
GMKT -
NASDAQ
Gmarket
Inc Ads
|
$27.08 |
$(0.26) |
10/3/2007 |
$26.85 |
+0.9% |
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Volume has generally been drying up
while it is hovering near highs following a 10-month cup-like
pattern. Its positive reversal on 10/22/07 was a reassuring
bounce from support near prior chart highs in the $24
area. Weekly chart is bullish. First featured in yellow in the
10/03/07 CANSLIM.net Mid-Day Breakouts Report (read
here). |
GOOG -
NASDAQ
Google
Inc
INTERNET - Internet Information
Providers |
$707.00 |
$12.23 |
9/21/2007 |
$560.33 |
+26.2% |
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No sound base after a steep run up.
An upward trendline connecting recent chart lows is an initial
chart support level for investors to watch, as a breach could be
a sign of a deterioration in its strong uptrend.
Featured in yellow on 9/21/07 in the CANSLIM.net Mid-Day
Breakouts Report with an annotated graph (read
here). Recovered completely from its big gap down on
7/20/07. |
GPOR -
NASDAQ
Gulfport
Energy Corp
ENERGY - Independent Oil & Gas |
$22.14 |
$0.67 |
10/1/2007 |
$23.66 |
-6.4% |
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Stayed above its 50 DMA line.
Negatively reversed on 10/29/07 for a loss on heavier than
average volume, closing near the session low, which raised
concerns. Further losses on heavy volume leading to a 50 DMA
violation would trigger a technical sell signal. It has struggled since it was
featured in the October '07 CANSLIM.net News (read
here). |
GRMN -
NASDAQ
Garmin Ltd
ELECTRONICS - Scientific & Technical Instruments |
$107.40 |
$(13.08) |
12/23/2004
6/1/2006 |
$30.69
$49.60 |
+250.0%
+116.5% |
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Gapped down and ultimately closed
near its session lows, triggering a technical sell signal while
violating its 50 DMA line with a considerable loss on volume
more than four times its average daily trading total. It
reported its latest earnings and news that it planned a
$3.3 billion bid for Tele Atlas, to top TomTom's offer.
Prompt support stepped in after considerable losses on heavy
volume had pushed it under its 50 DMA line on three consecutive
days of heavy distribution at the start of October. That bearish
action was summarized in the Featured Stock Update section of
the 10/03/07 CANSLIM.net After Market Update with an annotated
graph (read
here). Appeared in the 7/30/07 CANSLIM.net After Market Update
with an annotated graph (read
here), which included many details about prior coverage of
this long-time leader. This stock has traded up +309%
since first featured on Thursday, December 23, 2004 in the
CANSLIM.net Mid Day Breakouts Report (read
here). |
GTLS -
NASDAQ
Chart Industries Inc
|
$32.80 |
$1.18 |
9/19/2007 |
$31.30 |
+4.8% |
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Bounced at support near its 50 DMA
line, now rallying above its July highs in the $31
area. This high-ranked leader in the Oil and Gas -
Machinery/Equip Group (the L criteria) rose from a 10-week
cup shaped pattern after first being featured 9/19/07 in the
CANSLIM.net Mid-Day Breakouts Report (read
here). Strong sales revenues and earnings increases in the
3 latest quarterly financial reports.
|
HANS -
NASDAQ
Hansen
Natural Corp
FOOD & BEVERAGE - Beverages - Soft
Drinks |
$68.00 |
$1.69 |
2/1/2004
9/13/2007 |
$1.125
$50.05 |
+5944.0%
+35.9% |
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Extended from any sound base. The
Featured Stock Update section of the 10/16/07 CANSLIM.net
After-Market Update included detailed analysis and an annotated
graph (read
here). Featured in yellow in the 9/13/07
CANSLIM.net Mid-Day BreakOuts Report with a $50.08
pivot point and annotated graph (read
here). This great example to study traded up 59-fold
since it was first featured in the February 2004 issue of
CANSLIM.net News (read
here). |
HOLX -
NASDAQ
Hologic
Inc
FOOD & BEVERAGE - Beverages - Soft
Drinks |
$67.93 |
$1.00 |
2/21/2007
10/1/2007
|
$58.92
$63.19 |
+15.3%
+7.5% |
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Gain on average volume for its
second best close. Chart support is at prior chart highs in the
$62-63 area. Shareholders approved a merger with Cytyc (CYTC). Its 10/02/07 new high close with a gain on
+52% above average volume helped it rally beyond prior
(April-May) chart highs. It was previously removed from the
CANSLIM.net Featured Stocks List due to weak technical
performance on 5/22/07 but was re-featured on 10/1/2007 in the
CANSLIM.net Mid-Day BreakOuts Report while trading at
$63.19 (read
here). Its quarterly and annual earnings and sales revenue
growth have stayed very strong and it has stellar ranks that
satisfy the C and A criteria.
First featured in the 2/21/07 CANSLIM.net Mid-Day BreakOuts
Report at $58.92 with an annotated graph
here. |
ICE -
NYSE
Intercontinentalexchange
DIVERSIFIED SERVICES -
Business/Management Services |
$177.99 |
$7.07 |
1/3/2007
10/19/2007 |
$115.88
$165.97 |
+53.6%
+7.2% |
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Gain on light volume for a new
all-time high close. Sequentially, its sales revenues and
earnings growth rate show deceleration, however the increases
and ranks are still solid. On 10/24/04 it traded up with volume
above the +50% above average guideline for a
new all-time high, triggering a technical buy signal and it
quickly rose above its max buy level. Note that this previously
featured stock fell more than -20% within
3 weeks of 7/24/07 when it was last noted and
removed from the CANSLIM.net Featured Stocks List. ICE was first
featured in the 1/3/07 CANSLIM.net Mid-Day BreakOuts Report at
$115.88. |
ICLR -
NASDAQ
Icon
Plc Ads
DIVERSIFIED SERVICES - Research
Services |
$58.00 |
$(0.02) |
4/24/2007
9/18/2007 |
$45.50
$51.13 |
+27.5%
+13.4% |
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Quiet trading after it was down on
very heavy volume 10/29/07. Extended from any sound base after
considerable gains. On 10/23/07 it gapped up for gains on heavy
volume following another strong quarterly financial report
showing solid growth in sales and earnings. It was featured in yellow at $51.13
in the 9/18/07 Mid-Day BreakOuts Report as it triggered a
technical buy signal (read
here). Covered in the 9/21/07 CANSLIM.net After Market
Update in more detail with an annotated graph (read
here). |
ISRG -
NASDAQ
Intuitive
Surgical Inc
HEALTH SERVICES - Medical Appliances
& Equipment |
$326.87 |
$3.28 |
7/27/2004
9/19/2007 |
$20.68
$270.88 |
+1480.6%
+20.7% |
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Extended well beyond the max buy
level, yet holding its recent gains stubbornly. Featured recently in the 10/19/07
CANSLIM.net Mid-Day BreakOuts Report after it gapped up to new
all-time highs, breaking out of an ascending base pattern after
its latest strong earnings report (read
here). Following considerable gains, its recent climb was
marked by three pullbacks of about 10-20%, a characteristic of
the less common ascending base pattern. Solid earnings increases
of greater than +25% in the 3 latest quarters satisfies the C
criteria. This stock is up more than 11 fold
since it was first featured in yellow in CANSLIM.net report in
July-August 2004. |
ITC -
NYSE
I T
C Holdings Corp
UTILITIES - Electric Utilities |
$57.24 |
$(0.08) |
8/8/2007 |
$47.96 |
+19.3% |
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Reported earnings after the 10/31/07
close that fell short of the year earlier numbers by
-13%, a fundamental disappointment to investors who
expect increases of +25% or more.
First featured in the 08/08/07 CANSLIM.net Mid-Day BreakOuts
Report while it was trading at $47.96 (read
here), rising on very heavy volume. |
JST -
AMEX
Jinpan
International Ltd
ELECTRONICS - Diversified
Electronics |
$28.85 |
$(0.03) |
10/11/2007
|
$29.57
|
-2.4%
|
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Rose with above average volume from
a 9-month cup-with-handle type base pattern.
The 10/11/07 Featured Stock Update section of the CANSLIM.net
After-Market Update includes analysis along with an annotated
graph (read
here). It has decent ranks and a solid annual and quarterly
sales and earnings growth history with but one flaw - its March
'07 earnings comparison was flat with lower sales.
It has recovered well since its 10/22/07 gap down for a
loss on above average volume raised concerns. Healthy stocks
typically do not fall more than 7% below their pivot point. |
LIFC -
NASDAQ
Lifecell
Corp
DRUGS - Biotechnology |
$44.06 |
$0.45 |
4/26/2006
9/12/2007 |
$26.64
$35.91 |
+65.4%
+22.7% |
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Extended from any sound base. Traded
up +25% since featured in yellow on 9/12/07 in
the CANSLIM.net Mid-Day BreakOuts Report (read
here). High ranks and solid sales revenues and earnings
growth help satisfy the C and A
criteria. Price/volume pattern looks bullish on both its daily
and weekly charts. Long time CANSLIM.net members may recall when
LIFC was first featured at $26.64 in a 4/26/06
Stock Bulletin (read
here), after which it made limited progress and then went
through a deep correction under its 50 and 200 DMA lines.
|
MEAS -
NASDAQ
Measurement
Specialties
ELECTRONICS - Scientific & Technical
Instruments |
$27.74 |
($0.17) |
8/26/2007 |
$24.50 |
+13.2% |
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As previously noted, ''Watch for
a lighter volume pullback toward support at its prior chart
highs in the $25 area.'' The Featured Stock Update section
of the 9/11/07 CANSLIM.net After Market Update included updated
analysis and a new annotated graph under the headline ''Breakout
Getting Extended Beyond Max Buy Price Now'' (read
here). Featured in the 8/26/07 Special Report titled ''7
Stocks That Should Now Be On Your Watch List'' with an
annotated graph (read
here). Its weekly chart features several up weeks on heavier
than average volume versus only one down week on heavy volume,
which is a bullish sign. It may face some resistance due to
overhead supply from earlier highs near $30 in
May of 2006. |
MICC -
NASDAQ
Millicom
Intl Cellular
TELECOMMUNICATIONS - Telecom
Services - Foreign |
$117.48 |
$9.35 |
5/30/2007
9/3/2007 |
$84.97
$64.52 |
+38.3%
+82.1% |
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Considerable gain on more than
double its average volume has it extended well above its max buy
level. Recently covered in the 10/24/07 Featured Stock Update
section of the CANSLIM.net After-Market Update with detailed
analysis and an annotated graph (read
here). Breakaway gap up on 10/23/07 for new all-time highs
after reporting solid sales revenues and earnings increases for
the latest quarter. It was featured in yellow in the 10/23/07
CANSLIM.net Mid-Day BreakOuts Report (read
here). First featured in the June '07 CANSLIM.net News (read
here) and made some progress, then went through a deep
consolidation where any disciplined investors would likely have
sold. |
MORN -
NASDAQ
Morningstar
Inc
FINANCIAL SERVICES - Asset
Management |
$74.42 |
$1.37 |
9/3/2007 |
$64.52 |
+15.3% |
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Positive reversal from its 10/31/07
low for a new all-time high close, and volume picked up behind
the gain. Positive reversal on 10/22/07 from support at prior
chart highs was a sign of healthy institutional support. It was
highlighted in the 10/04/07 CANSLIM.net Mid-Day Breakouts Report
(read
here) and went on to close at a new all-time high with
volume nearly triple its average daily total. That action
triggered a much anticipated technical buy signal. Featured at $64.52 in the September '07
CANSLIM.net News with an annotated graph
here. Watch for a new proper technical buy signal to be
triggered with convincing gains on at least +50%
above average volume before initiating any new positions.
|
MR -
NYSE
Mindray
Medical Intl ADS
HEALTH
SERVICES - Medical Appliances & Equipment |
$39.76 |
$0.95 |
2/22/2007
6/1/2007 |
$27.63
$29.80 |
+43.9%
+33.4% |
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Hovering above its 50 DMA line. Due
to report earnings on November 1, 2007. The Featured Stock
Update section of the 10/18/07 After-Market Update had detailed
analysis and an annotated graph (read
here). Featured at
$29.80 in the June 2007 issue of CANSLIM.net News with an
annotated graph and extensive details (read
here).
|
NCIT -
NASDAQ
N C
I Inc CL A
COMPUTER SOFTWARE & SERVICES -
Information Technology Services |
$19.09 |
$0.03 |
8/24/2007 |
$16.91 |
+12.9% |
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Announced on that it was awarded a
$4.8 million USAF order after the close on
10/31/07, which was a very quiet session after yet another solid
earnings report. Basing in a tight range for the past 7
weeks Its 9/06/07 breakout and bullish characteristics were
covered in more detail in the 9/07/07 CANSLIM.net After Market
Update (read
here). First featured in the 08/24/07 CANSLIM.net Mid-Day
BreakOuts Report (read
here) while trading at $16.91. Strong sales revenue
and earnings increases in its past 3 quarterly
comparisons satisfy the C criteria. Insider
buying in recent weeks is another reassuring sign. Small supply
of only 6.46 million shares in the float could contribute
to volatility. Limited annual earnings and sales history, or
A criteria, is less than ideal since it began
trading publicly. |
NDAQ -
NASDAQ
Nasdaq
Stock Market Inc
DIVERSIFIED SERVICES -
Business/Management Services |
$46.70 |
$0.62 |
10/24/2007 |
$42.66 |
+9.5% |
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New high close on 10/31/07 with a
small gain on average volume. The Featured Stock Update section
of the 10/26/07 After Market Update included detailed analysis
and an annotated graph (read
here). Gain on 10/25/07 with +55% above
average volume triggered a technical buy signal as it rose and
closed above its pivot point. Featured in the 10/24/07
CANSLIM.net Mid-Day BreakOuts Report (read
here). Rising above the handle following a 11-month
cup. It has a strong earnings and sales growth history and high
ranks.
|
NTCT -
NASDAQ
Netscout Systems Inc
COMPUTER SOFTWARE & SERVICES -
Business Software & Services |
$15.46 |
$1.02 |
8/1/2007
9/24/2007 |
$9.71
$10.19 |
+59.2%
+51.7% |
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Gain on heavier volume has it even
more extended from its prior base. Updated analysis and
annotated chart were in the 09/24/07 CANSLIM.net After Market
Update after this high-ranked leader from the strong Computer
Software - Enterprise group triggered a fresh technical buy
signal (read
here). Strong since its 9/20/07 gap gain on more than twice
its average volume helped it close above its 50 DMA line and
challenge its 2007 high. First featured in the August '07 CANSLIM.net News
(read
here). |
NVT -
NYSE
Navteq
Corp
COMPUTER SOFTWARE & SERVICES -
Business Software & Services |
$77.20 |
$0.93 |
9/12/2007 |
$68.94 |
+12.0% |
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Featured at $68.97
in a detailed Stock Bulletin (read
here). Based on the proposed deal NVT is not considered a
tempting buy candidate now, however there are traders who might
wish to speculate (not suggested) on a bidding war. It was
removed from the CANSLIM.net Featured Stocks list on 10/18/2007. |
OMCL -
NASDAQ
Omnicell
Inc
COMPUTER HARDWARE - Computer Based Systems |
$26.40 |
$1.50 |
9/10/2007 |
$25.37 |
+4.1% |
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Gain on average volume has it
approaching its 50 DMA that was violated after its 10/19/07 gap
down. Further losses on high volume would raise greater
concerns.
The 9/13/07 CANSLIM.net After Market Update included a more
detailed summary and new annotated graph (read
here). Number of top rated funds owning it rose from
62 in Sept '06 to 99 in June '07,
which is encouraging news concerning the I
criteria. |
ORB -
NYSE
Orbital
Sciences Corp
AEROSPACE/DEFENSE -
Aerospace/Defense Products & Services |
$25.53 |
$0.10 |
5/1/2007 |
$20.87 |
+22.3% |
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Perched near highs with volume
drying up. High-ranked leader holding up well after its latest
strong quarterly report showed accelerating sales revenues and
earnings growth for the latest quarter. It recently rose from an
11-week cup shaped pattern. It has not made
very substantial progress since featured in the May 2007 edition
of the CANSLIM.net News (read
here) |
PAY -
NYSE
Verifone Holdings Inc
CONSUMER
DURABLES - Business Equipment |
$49.43 |
($0.13) |
12/5/2005
9/26/2007 |
$24.89
$42.53 |
+98.6%
+16.2% |
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Recovered from the 10/31/07
session's early lows to close with a small loss. Encouraging
positive reversal on 10/22/07, finding support near prior chart
highs in the $42 area that are now a key
support level. Featured mid-day 9/26/07, followed by a more
detailed write-up in the Featured Stock Update section of that
evening's CANSLIM.net After-Market Update with an annotated
graph (read
here). It gapped up and extended its gains following a
technical breakout late in the session on 9/25/07. Sales and
earnings have been up strong, satisfying the C and A
criteria.
|
PRFT -
NASDAQ
Perficient Inc
COMPUTER SOFTWARE
& SERVICES - Business Software & Services |
$18.85 |
$0.36 |
9/8/2006 |
$14.18 |
+32.9% |
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PRFT was removed from the
CANSLIM.net Featured Stocks list on 10/10/2007 after being down
sharply for a second consecutive session after an analyst
downgraded the stock due to slowing organic growth. It broke
under its 200 DMA, and only has prior chart lows in the $18 as
remaining support. Recent gains came on average to light volume
but today's loss was on high volume. After buying privately held
BoldTech for $21 million, it fell for a
considerable loss on 9/21/07 on more than 3
times average volume, but promptly recovered |
PRXL -
NASDAQ
Parexel Int
Corp
DIVERSIFIED
SERVICES - Research Services |
$46.00 |
$1.10 |
6/28/2007 |
$42.38 |
+8.5% |
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Hovering above prior chart highs in
the $44-45 area. Due to its light volume, note
that it did not trigger a proper buy signal on the latest
breakout. Volume is a critical component of buyable breakouts.
Featured with a new pivot point of $43.64 in the August
'07 CANSLIM.net News (read
here). This is a good example of why patience and discipline
are important |
RIMM -
NASDAQ
Research In Motion LTD
TELECOMMUNICATIONS - Diversified
Communication Services |
$124.51 |
$4.70 |
12/3/2003
2/26/2007 |
$7.62
$48.46 |
+1534.0%
+156.9% |
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On 10/23/07 it announced a pact with
Alcatel-Lucent. After a steep run up it is extended from any
sound base and way above its max buy price. Big gap up gains on
10/05/07 came with more than 3 times its
average volume following its latest strong earnings results. This high-ranked leader was noted in 8/17/07 CANSLIM.net
After Market Update's Featured Stock Update section under the
headline 'Prompt Repair Of 50 DMA Line Violation'
with an annotated graph (read
here). This long-time favorite has risen 15-fold since first featured in the
December 2003 issue of our monthly newsletter, CANSLIM.net News
(read
here). |
SCRX -
NASDAQ
Sciele
Pharma Inc
|
$25.44 |
$(1.10) |
9/26/2007 |
$26.22 |
-3.0% |
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Gapped down on 10/31/07 and closed
with a loss on more than 6 times average volume
following its latest earnings report that showed only an
+8% earnings increase over the year earlier. Its 50 DMA
line violation was a classic technical sell signal, and an
example of how fundamental news can quickly impact share prices.
Key chart support near its prior highs in the $26
area was also clearly violated. Concerns were raised by its
close on 10/30/07 just under its pivot point. Its 10/02/07 gain
on +74% above average volume for its best close
ever met the guideline for a proper technical buy signal. First
featured in 9/26/07 Mid-Day BreakOuts Report as it challenged
prior chart highs in the $26 area (read
here). |
SLT -
NYSE
Sterlite
Inds India Ads
|
$25.97 |
$1.02 |
9/27/2007 |
$18.65 |
+39.2% |
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It reported sales and earnings
increases below guidelines on 10/29/07, raising concerns, yet it
is holding up fine. Gapped up on 10/23/07 for a solid gain, and
now it is extended from a proper buy point. Positive reversal on
10/22/07 was a sign it was finding prompt support near prior
highs in the $18 area. Featured in the 9/27/07
CANSLIM.net Mid-Day Breakouts Report with an annotated graph
(read
here). |
SPN -
NYSE
Superior Energy Svcs
ENERGY - Oil & Gas Equipment &
Services |
$37.08 |
$2.64 |
7/25/2005
3/27/2007 |
$20.48
$34.42 |
+81.1%
+7.7% |
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This stock was removed from the
Featured Stocks list on 10/11/2007 after a loss on heavy volume
led to a close under its 200 DMA line. Its Relative Strength
rank had dropped under the 80+ guideline,
raising more concerns. As previously noted, ''a break below
chart support near $35 or its 200 DMA line would be
worrisome technical sell signals.'' It failed to rally
above its downward sloping 50 DMA line week after week. The new
pivot point of $41.79 (6/20 high of $41.69 +
$.10) was noted on 8/1/07, but it did not trigger a proper
technical buy signal since, making this an example of why
patience is so important. Strong C and
A criteria based on great earnings growth history. This
company's fundamentals remained strong, but it had a very bumpy
ride while more than doubling since it was first featured in the
7/25/05 CANSLIM.net Mid-Day BreakOuts Report (read
here). |
SPWR -
NASDAQ
Sunpower Inc
ELECTRONICS - Scientific & Technical
Instruments |
$126.46 |
$7.40 |
3/28/2007 |
$46.58 |
+171.5% |
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Recently noted repeatedly- ''It
is now too extended from an ideal buy point.'' This
high-ranked solar energy firm has traded up +102.7%
since it was featured in the 8/26/07 Special Report titled ''7
Stocks That Should Now Be On Your Watch List''' with an
annotated graph (read
here). It has traded up +170% since being
featured at $47.60 in the 03/28/07 CANSLIM.net Mid-Day
BreakOuts Report with an annotated graph (read
here). |
STP -
NYSE
Suntech
Power Hldgs ADS
ELECTRONICS - Diversified
Electronics |
$58.89 |
$(0.11) |
7/10/2007 |
$39.83 |
+47.9% |
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Pulled back on lighter volume after
big gains on heavier volume for 3 consecutive sessions. Gapped
up on 10/25/07 rallying for considerable gains after announcing
a contract to purchase Polysilicon. Recently broke out and then
tested support near prior chart highs in the $44
area, giving disciplined investors the chance to accumulate
shares within guidelines, but now it is extended from a proper
buy point. A strong close and new all-time highs on 10/18/07
with gains backed by +63% above average volume
confirmed a technical buy signal. The Featured Stock Update
section of the 10/17/07 After-Market Update provided detailed
analysis and an annotated graph (read
here). |
TDG -
NYSE
Transdigm Group Inc
|
$45.45 |
$0.22 |
9/24/2007 |
$42.57 |
+6.8% |
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Recently found support at its 50 DMA
line. Positive reversal on 10/22/07 was encouraging after
briefly violating its 50 DMA line intra-day. Recent closes under
its July chart highs in the $43 area raised
concerns by negating its latest breakout. The Featured Stock
Update section in the 10/05/07 CANSLIM.net After Market Update
provided fresh analysis and a new annotated graph (read
here). The 9/26/07 CANSLIM.net Stock Bulletin provided a
detailed look at this high-ranked leader along with an annotated
graph (read
here). |
TRAK -
NASDAQ
Dealertrack Holdings Inc
COMPUTER SOFTWARE & SERVICES -
Application Software |
$49.09 |
$1.01 |
8/26/2007 |
$37.85 |
+29.7% |
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Hovering near its all-time highs
since it recently completed an additional share offering. When
announced, the offering news resulted in a test of support near
its 50 DMA line and prior chart highs in the $40
area where it promptly bounced. Featured in the 8/26/07 Special Report titled ''7
Stocks That Should Now Be On Your Watch List''. That report
included annotated graphs and commentary including our detailed
CANSLIM.net Profile, What To Look For And What To Look Out For,
and Technical Analysis summaries (read
here). |
VOCS -
NASDAQ
Vocus
Inc
INTERNET - Internet Software &
Services |
$35.98 |
($0.62) |
4/5/2007 |
$21.64 |
+66.3% |
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It is extended from an ideal buy
point since its gap up on 10/24/07 lifted it above its max buy
level. VOCS has traded up as much as +72% in
the almost 7 months since first featured in
yellow in the 04/05/07 CANSLIM.net Mid-Day BreakOuts Report with
an annotated graph (read
here) while trading at $22.05. |
VSEC -
NASDAQ
V S
E Corp
DIVERSIFIED SERVICES - Technical
Services |
$59.29 |
$1.46 |
10/9/2007 |
$55.53 |
+6.8% |
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Held up well since its gap down
10/22/07 for a considerable loss. Bounced after finding prompt
support near prior chart highs in the $51 area.
Detailed analysis provided in the Featured Stock Update section
of the 10/09/07 CANSLIM.net After Market Update (read
here). Featured in yellow at $55.53 in the
10/09/07 Mid-Day Breakouts Report after it gapped up from a
choppy cup-with-handle which has a steep left side based on
swift declines in August. It quickly rose above the high of the
handle by more than 5% with volume almost twice
its average daily volume. It has a small supply of shares
outstanding and high ranks based on strong sales revenue growth
and solid earnings history (good C and
A criteria). |
WBD -
NYSE
Wimm
Bill Dann Foods ADR
FOOD & BEVERAGE - Beverages - Soft
Drinks |
$119.75 |
($0.25) |
6/3/2007
|
$89.50 |
+33.8% |
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Quiet trading since its gap up
10/29/07 for a new all-time high. It rallied above its pivot
point, but volume behind the gain was below average - a sign of
questionable institutional buying demand. Considerable gain on
10/17/07 with volume near twice its average pace as it traded
above its pivot point and hit a new all-time high, triggering a
technical buy signal. Found prompt support near its 50 DMA line.
This high-ranked leader with strong earnings and sales increases
traded up as much as +39.6% after it was featured in the
June '07 CANSLIM.net News at $89.50 with an annotated
graph (read
here). |
WBMD -
NASDAQ
Webmd
Health Corp Cl A
COMPUTER SOFTWARE & SERVICES -
Business Software & Services |
$45.97 |
$0.35 |
9/12/2007 |
$56.16 |
-18.1% |
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It was removed from the Featured
Stocks list on 10/17/2007. Gapped down 10/17/07after earnings
and forecast release. Technically it negated the recent breakout
and also violated support at its 50 DMA line, triggering sell
signals. Closed under its 200 DMA line.
|
WFR -
NYSE
M E
M C Elec Materials ELECTRONICS - Semiconductor - Integrated
Circuits |
$73.22 |
$0.30 |
1/26/2006 |
$51.61 |
+41.9% |
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Stubbornly holding its gains since
its 10/26/07 breakaway gap up triggered a fresh technical buy
signal as it reported its latest quarterly earnings and
important new fundamental news (the N criteria). Based on
the new bullish developments, daily coverage was immediately
resumed after it was briefly dropped from the Featured Stocks
list after a weak close on 10/25/07. First featured in the
1/26/07 CANSLIM.net Mid-Day BreakOuts Report at $51.61.
|
WHQ -
NYSE
W-H
Energy Services Inc
ENERGY - Oil
& Gas Equipment & Services |
$57.56 |
($0.08) |
11/28/2005
7/20/2007 |
$32.80
$65.66 |
+76.2%
-12.3% |
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It was removed from the CANSLIM.net
Featured Stocks list on 10/16/2007. Loss on heavy volume had it
testing the next chart support at its 200 DMA line and old
chart highs in the $56-57 area. On 10/12/07 it gapped down under
its 50 DMA line and violated support at prior chart highs,
triggering technical sell signals which were noted in that
evening's CANSLIM.net After-Market Update (read
here). It was downgraded at two brokerages as the
oil-services firm announced that slowdowns in the Gulf of Mexico
and in its coil-tubing business for oil and gas extraction will
bite into earnings. |
WMS -
NYSE
W M
S Industries Inc
ELECTRONICS
- Diversified Electronics |
$34.67 |
$0.36 |
8/26/2007 |
$29.61 |
+17.1% |
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Consolidating above support at its
50 DMA line. Its 9/18/07 gain on
+53% above average volume for a new high close
triggered a technical buy signal. This high-ranked gaming issue
was featured in the 8/26/07 Special Report titled
''7 Stocks That Should Now Be On Your Watch List'' with
annotated graphs and commentary including our detailed
CANSLIM.net Profile, What To Look For And What To Look Out For,
and Technical Analysis summaries (read
here). |
WYNN -
NASDAQ
Wynn
Resorts Ltd
LEISURE -
Resorts & Casinos |
$161.43 |
($6.47) |
8/26/2007 |
$123.13 |
+31.1% |
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Gapped down for a considerable loss
on above average volume following its latest earnings report.
Technically it may find support at an upward trendline, while
prior chart lows near its 50 DMA line would be the next
important support level to watch. Recently noted that it was
extended from a proper buy point. Its 10/29/07 breakout gain was
noted to have come on just +33% above average
(below the +50% minimum guideline for buyable
breakouts) volume after basing several weeks above a recent
support level near $150. Traded up +43%
since it was featured in the 8/26/07 Special Report (read
here). |
ZUMZ -
NASDAQ
Zumiez Inc
SPECIALTY
RETAIL - Apparel Stores |
$41.86 |
$0.69 |
10/11/2007 |
$52.55 |
-20.3% |
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Gapped down for a considerable loss on heavy volume on
10/30/2007 and based on the weak action it was removed from the
Featured Stock list. Previously noted ''Its recovery
attempt stalled at its 50 DMA line. Found support near prior
chart highs in the $42 area. Further damaging losses would
trigger additional sell signals.'' Triggered earlier
technical sell signals on 10/18/07 as it violated support at its
50 DMA line with a gap down and loss on more than twice its
average daily volume. Remember that disciplined investors always
sell when a stock falls 7-8% from their buy point to
eliminate the chance of even greater losses.
It had been featured in yellow on 10/11/07 in
the mid-day report (read
here). |
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EDITOR'S |
LETTER
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Why Quality Of Content Sometimes Takes
Priority Over The Clock
- Frank DeBold
We have heard from a few subscribers
relative to the timeliness of certain CANSLIM.net reports. We have
always aimed and continue to strive to have the Mid-Day Breakouts
Report published near 1pm and the After Market Report published by 8
PM. There really are a couple of very important things that
subscribers should know about CANSLIM.net services that should help
to put our reports and their timeliness into the proper context.
Please allow me to explain things better, since obviously we are
aware that the reports have occasionally been lagging behind the
desired schedule lately. Know that we are constantly striving to
make things at CANSLIM.net better in both content and timeliness.
Each improvement comes from the vital feedback we receive from
members, so I truly appreciate suggestions if you have any.
The simple fact is that market
conditions in recent months have actually been more conducive to our
approach. This has often been resulting in an expansion in the
number of high-ranked stocks coming up under the typical screening
parameters that are used to produce the CANSLIM.net Reports. You
might note that the Featured Stocks list has risen from about
20 stocks to about 60 stocks over
the past 2 months, and there have been many huge
winners pinpointed during this time! We are, as always, doing our
very best to hand pick the most action worthy ideas for you and
provide our members with a thorough analysis from the best stocks.
And anything that comes halfway close, you'll see noted in the
bottom section of each Mid-Day Breakouts Report (below the most
noteworthy yellow stocks and previously featured green stocks
highlighted in the top portion of the report).
To help expedite the availability of
the Mid-Day Breakouts Report, you may notice that the screen
parameters are occasionally adjusted. This whole report starts by
sorting the CANSLIM.net Leaders List at about 12:15pm (the mid-point
of the trading day), based usually on stocks within close range (5%)
of their 52-week highs or hitting new 52-week highs with volume on
pace to be "above average". Instead of screening for stocks that
have traded 75% of their average volume at that
time, we can raise the bar to something higher like 85%
and the result would be a shorter list of stocks that would probably
be available to you sooner. Or, we could screen based on stocks in a
closer range of the 52-week high to also shorten the list. Our staff
has honestly been doing their best to not be accused of "skimping",
but the greater number of stocks has delayed the publishing.
Just a few years ago, the CANSLIM.net
Mid-Day Breakouts Report was invented as a new way for us to
demonstrate the CANSLIM.net Leaders List Screening Tool. The report
was literally created for members who were looking for ways to find
fresh ideas in between the monthly issues of CANSLIM.net News we
publish. Please be advised that any member can do their own
screenings any time they want to here ->
http://premium.canslim.net/leaders/ss1.asp
A link to the Screening Tool is also located on the left (green)
side of the Home Page at
www.canslim.net
So, anyone wishing to get a jump on the ideas (ahead of our staff
taking the necessary time that it does take to publish the report)
can use the screening tool available. The site was designed so that
the screening tool could be used to spot high-ranked stocks before
they showed up highlighted in bold in the newspaper the next day,
and we still use it to do just that, every day!
While we took on the challenge of
delivering more timely day-to-day content, and CANSLIM.net grew from
our original pay service of a simple monthly newsletter, we find
ourselves often am forced to question the wisdom of the gradual
expansion to our now twice-daily reports, mainly because countless
subscribers complain that, with the CANSLIM.net membership, they are
getting bombarded with "too much" information, "too often" and they
frequently have trouble narrowing down the ideas.
I would like to take a moment to
point out something about some recent winners you may have seen.
Suntech Power Holdings (STP) has traded up about 50%
since it was first featured in the July 10th 2007 Mid-Day Breakouts
Report (
http://premium.canslim.net/cnnews/middaycbor/middaybreakoutstodaypay071007.asp
) Now, we would never be able to get away with glossing over the
fact that it initially made headway and then it went through a very
tough correction where disciplined investors would have been
prompted to sell. But CANSLIM.net reports provided day-to-day
coverage of the ongoing action and called attention to the stock
again later when it broke out and really sprinted.
Other winning examples to look at
might include Morningstar (MORN), which was published in the
September 2007 CANSLIM.net News
http://premium.canslim.net/cnnews/cnn090307.asp#MORN
or Crocs Inc (CROX), which was published in the February 2007
CANSLIM.net News. MORN took another month's time basing before it
later broke out on 10/04/07 and triggered a buy signal, and it has
done pretty well since. CROX sprinted for a couple of days after its
coverage; then also went through a tough correction where
disciplined investors would have been prompted to sell. It was tough
to feature as a solid buy candidate after its 5/04/07 gap up put it
way above its prior chart highs, yet CANSLIM.net's ongoing reports
provided day-to-day coverage of the action and called attention to
the stock again and again later when it flashed buy signals. In
these examples, calling early attention to high-quality buy
candidates was the most important value we could add, not
necessarily the timeliness of a single report. My main point is
that members should never inappropriately dismiss the information as
"too old to be of value to me" if it is only a few hours or even a
few days old. The fact is that a great deal of research has been
done by CANSLIM.net experts to identify the most appropriate
companies for your consideration in the days, weeks, and months
ahead.
We truly care about our members'
success!
As always, we remain
dedicated to your investment success.
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Comments contained in the body of this report are
technical opinions only and are not necessarily those of
CANSLIM.net. The material herein has been obtained
from sources believed to be reliable and accurate,
however, its accuracy and completeness can not 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.
This is an unsolicited opinion, and CANSLIM.net has not
been compensated in any way by the company(s) mentioned
in this report.
If you know someone who might find this report or the features on our
website useful, please tell them about
http://www.canslim.net/. As CANSLIM.net's
subscriber base grows we are able to offer additional resources to help
you become a more successful investor. We appreciate hearing any
feedback that you may have. Please submit any questions, comments or
suggestions
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