One New Speculative CANSLIM Swing Long, Five New Speculative Swing Longs, And Four Stocks I Am Adding To My Existing Positions

February 20, 2007

New speculative CANSLIM swing long: TWIN

TWIN is breaking out of a very tight flat base, on very strong volume. This comes after an uptrend full of accumulation, low volume pullbacks, and max green BOP. The fundamentals are great with EPS growing 48% or better the past 6 quarters and sales rising 14% or better the past four quarters. This is not recommended for newbies, due to the volatility and low average daily volume. Cut your loss w/ a close below 42.33, if the stock does not follow-through immediately.

New speculative swing longs: XNPT RDCM ESCH EVVV SHPGY

XNPT is bouncing off support on strong volume. This bounce off support comes after an explosive gap up on huge volume. This base has been on low volume with BOP at max green the whole way. This bounce along with the prior price, volume, and BOP action makes this a pretty chart. This stock is not for newbies as there are no earnings. Sales are growing huge, up 607% the most recent quarter. Cut your loss w/ a close below the 27.06 level, if the stock does not follow-through immediately.

RDCM is bouncing off support and the pivot point of the early Feb. breakout, on very strong volume. This stock has rallied off the July lows on strong accumulation, low volume pullbacks, and strong BOP. BOP has been max green during this entire basing period and today’s price jump on volume with BOP staying max green makes this a very pretty chart. This stock is not a great long for newbies, due to the longer-term overhead resistance on the chart. The EPS is getting better with growth of 33% or higher the past 3 quarters. Sales are growing 14% or higher the past 3 quarters. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through immediately.

ESCH is breaking out of a tight flat base, on very strong volume. After a beautiful uptrend full of accumulation and strong BOP, ESCH started a pullback. This pullback came on lighter volume and with BOP going to a high green level. Today’s breakout, with a volume and BOP surge, along with all the previous action, makes this a beautiful chart. This is not the best long for newbies due to the low average daily volume and negative EPS (though it is turning around and estimates are for .55 this year). Sales have been growing at a 10% or greater clip the past 7 quarters. Cut your loss w/ a close below the 22.70 level, if the stock does not follow-through on this breakout immediately.

EVVV is breaking out of a short consolidation flag pattern, on strong volume. This stock has been in a steady uptrend full of accumulation, low volume pullbacks, and strong BOP. After breaking out on huge volume in early Feb, the stock has based on low volume and with BOP near max green, the entire way. Today’s breakout on a volume surge, along with the previous chart action, makes this a pretty chart. This is not the best stock for newbies, however, due to the fact that there are no earnings (estimates for 2008 are for .70) and it has a choppy trading history. Cut your loss w/ a close below the 19.22 area and/or the 50 dma, if the stock does not follow-through immediately.

SHPGY is bouncing off the 50 dma and breaking out of a consolidation pattern, on very strong volume. This stock has been in a steady uptrend for a long time. During the uptrend there has been steady accumulation and low volume pullbacks. BOP has strengthened again, into the recent price rise. The current base was built on very tight price action and low volume. Today’s breakout, with a volume and BOP surge to the green territory, along with the previous price/volume action makes this a very pretty chart. This stock is not great for newbies, due to the horrible EPS growth (all red for the past 8 quarters) and the weakening sales growth. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through immediately.

Adding To existing postions: CROX SGIC ONT SPPI

CROX is bouncing off of support and closing above the previous six days closes, on extremely strong volume. This is a continuation buy of CROX, as the two best times to buy this stock are long gone. This stock has been in a steady uptrend since June, with tons of accumulation and green BOP the entire way. This bounce here appears to be the start of another uptrend leg, as CROX rarely makes it to the 50 dma line. The bounce off the 50 dma in early Jan was perfect and the stock has been acting perfect since then. This beautiful stairstep pattern, along with all the accumulation and green BOP make this a beautiful chart. The scary part is that earnings are coming up shortly but with 36% of the float short I am not too worried. EPS and sales growth are incredible. EPS has grown 267 800 999 650 240 333 179% in the past seven quarters. Sales have are declining but have grown from 999-191% during the past eight quarters. On this purchase here, cut your loss w/ a close below the 50 dma, if the stock does not continue to move higher immediately.

SGIC is breaking out of a high tight short flat base, on avg. volume. This is the breakout that was hinted at two days ago on the HUGE volume bounce that had BOP go to the max green territory. BOP is still at the max green level after today’s breakout. Take that, along with the current price, volume, and BOP action, and you have a very pretty chart. This stock is not for newbies as the average daily volume is too low, EPS does not exist, and sales growth is going in the wrong direction. Cut your loss w/ a close below the 26.20 area, if the stock does not follow-through on the breakout immediately.

ONT is breaking out above the mid-Jan and February highs, on very strong volume. After the previous uptrend, full of accumulation and max green BOP, ONT decided to take a break. The pullback that started in January came on very low volume, with the stock finding support right at the 50 dma. BOP stayed max green almost the entire way. Today’s breakout on a surge in volume and with BOP going back to max green, along with the previous chart action, makes this a very pretty chart. This is not a good long for newbies, as the stock is very volatile and there are no earnings. Sales are growing 233% or better the past four quarters. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through immediately.

SPPI is breaking out of a short cup pattern and longer-term base on base pattern, on strong volume. This stock has been in a powerful steady uptrend after the September breakout gap-up on HUGE volume. The stock has been under steady accumulation on every rally and has had very little to no selling the entire way up. BOP has remained above the zero line and has been near the max green territory since the breakout in late January. Todayâ€™s move on a spike in volume and a slight jump in BOP, along with all the previous action, makes this a very green and pretty chart. Besides this chartâ€™s beauty, sadly, there is nothing else. The EPS is loaded with red ink and sales simply really donâ€™t exist. This stock is not for emotional traders. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through from this move immediately.