Two New CANSLIM Swing Longs And Eight New Speculative Swing Longs For Friday

March 22, 2007

new CANSLIM swing longs: RVSN LHCG

RVSN is breaking out of a very nice base on base formation, on extremely strong volume. This stock first moved out of a very long round cup pattern in October, on strong volume. That led to the next base that RVSN broke out of in February. On that breakout volume jumped significantly after a very low volume base, and BOP made a surge into green territory. This base was very good, considering the market we went through. There were many days where you can see huge surges in volume, indicating support, at the 50 day moving averages. On the days where you see the stock breaking below both moving averages, it always rebounded to close in the upper half of its intraday price range. During this base, with all that movement, BOP stayed a high level to max green. Today’s breakout, along with the overall price/volume/BOP action, makes this a very pretty stock. The fundamentals are very impressive, but they are slowing. EPS has grown between 17% and 267% the past eight quarters. Sales grew 11% to 26%, during that time. The only problem with this stock is the fact that as of right now the stock is a bit extended from the pivot point and 50 dma, for a newbie. However, a low volume pullback, would make it perfect to jump on. Cut your loss with a close below the 50 dma, if the stock does not follow-through immediately.

LHCG is bouncing off support and the 50 dma, on very strong volume. This stock has been in a steady uptrend, never touching the 200 dma, since the late May breakout last year. Even before the breakout BOP was in max green territory, indicating there was systematic accumulation even before the move started. Since then it has been high volume rallies and low volume pullbacks, until January of this year. That started an ugly base that was fixed at the end of February on very strong volume and green BOP. The stock has since pulled back on lower volume, leading up to today’s move. The overall chart pattern is very pretty and green (except January). The fundamentals are very impressive, as both EPS and sales are accelerating every quarter. EPS has grown 136%, 45%, and 100% the past three quarters and estimates are for 20% gains this year and next year. Sales have grown from 19% to 50% the past six quarters. Fund ownership is extremely impressive too, increasing from 24 to 43 to 50 the past three quarters. This stock is a bit sketchy for new emotional traders, as just like RVSN, it is a bit far away from the 50 dma. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through immediately.

new speculative swing longs: PKD SNCI ASTI TGX VTO SRVY PAE URZ

PKD is bouncing off the 50 dma and breaking out past the February highs, on very strong volume. This stock has been in a steady uptrend since the 2002 lows and looked to have topped in January of 2006. However, after the selling was over in October the stock resumed its uptrend. At the end of February the stock started to show a significant increase in volume to the upside (accumulation) in comparison to the volume in the pullback. Since then BOP has gone green and stayed green, prices are rounding out for a breakout, and the stock continues to receive very impressive accumulation while suffering very little selling. The fundamentals are a bit mixed with EPS growing again after being in the red for one quarter; sales are slowing and now have entered the red zone. Fund ownership is falling too, with only 70 funds owning it compared to 81 in March of 2006. Cut your loss with a close below the 50 dma, if the stock does not continue to follow-through on this move immediately.

SNCI is breaking out of a very beautiful flat base, on very strong volume. This stock has been part of an uptrend since November 2005-where it started on a HUGE surge in volume. After a bit of a nasty pullback, the stock blasted off the October 2006 lows on very strong volume and max green BOP. After that the stock steadily and in beautiful fashion move higher into what appeared to be a climax run that ended at the beginning of February. However, SNCI began a flat base with BOP holding the zero line and spending a lot of time in the green zone and with volume really drying up at the end. Today’s breakout on the price, volume, and BOP surge, along with the price/volume/BOP action the past two years, makes this a pretty chart (more green BOP would make it near perfect). The fundamentals were horrible, until the most recent quarter when they grew 103% to .03 cents a share; estimates for 2008 are for a 157% increase. Sales growth also has gone from flat to a 24% jump this quarter. Fund ownership has also increased from 17 to 20 the past four quarters. So there is some fundamental reason for more price gains. Still this stock is a bit risky for new emotional traders as the stock is extended from the proper cut loss area and the fundies are only now getting good. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through on its breakout.

ASTI is breaking out of a short cup pattern, on very strong volume. I have missed a 99% move from the day I wanted to go long. I decided to pass due to the overall market (3/12) condition. In hindsight, I made the wrong choice. This stock has been in a steady uptrend since the October move, on volume and with BOP going very green. It pulled back in December to February but then retook the 50 dma on good volume (that is when I first started flagging this; forums) and with BOP going max green. In mid/late February this stock exploded to the upside on 2/23 but was over 40% extended from the most logical cut loss point (50 dma). After that explosion it pulled back for two day then exploded again (flagged it there too) and again. The recent huge rally on 3/14 has set up the five day base that the stock is breaking out of today. This stock is extremely pretty with all the max green BOP on the chart but this breakout sure comes very late and seems a bit too obvious–this stock was talked about all day in the chat rooms. The fundamentals are horrible and DO NOT EXIST. This is purely a momentum stock that NEVER sets up in proper bases. The quick explosions and no bases setting up for real investors to get in makes this a horrible long for my style. I would avoid all newbies to avoid this stock completely. However, I want to own a few shares. Cut your loss with a close below the 7.39 price, if the stock does not follow-through immediately.

TGX is breaking out of a nice round base, on very strong volume. The stock has been in a steady downtrend until October of last year. There the stock finally bounced higher on strong volume with BOP going green. The stock slowly drifted up but still had another small sell-off in December. Right after that, though, this stock exploded higher in January on very strong volume and max green BOP. The stock then created a very deep base, pulling back to the 50 day moving average, on lower volume. BOP stayed green the entire way and after the Feb 27 sell-off the stock recovered completely. Today’s breakout on an extremely strong volume surge and with BOP going back to max green, along with the action since January, makes this a very pretty chart. The fundamentals look like they have finally turned around and there is now some decent growth showing up. The EPS growth the past five quarters has been 125%, 200%, 200%, 106%, and 999% the past five quarters. Sales are slowly picking up again, gaining between 11% and 45% the past eight quarters. Fund ownership finally ticked up again in the most recent quarter rising from 45 to 47. This stock is not really a good long for emotional newbies as this stock is very volatile and has wide price swings. The fact that the safest cut loss is 20% away just makes this too dangerous for a new traders portfolio. Cut your final loss with a close below the 50 dma, if the stock does not follow-through immediately.

VTO is breaking out through the 50 dma, on strong volume. This stock has been in a strong uptrend since the June lows last year. Since those lows, the stock has rallied on big days of accumulation that are always followed by low volume pullbacks. The uptrend really got into gear in December as the stock broke out on huge volume and max green BOP. That rally was full of HUGE accumulation, max green BOP, and low volume pullbacks. The stock then started a pullback in late February but after the selling stopped volume went dry and quiet. That indicated that there were no more sellers left in the stock after such a big dip in late February. Today’s move above the 50 dma on a surge in volume with BOP still green, along with the overall previous action of the chart, makes this a very pretty green chart. Cut your first loss with a close below the 50 dma and your final loss with a close below the 5.48 level, if the stock does not follow-through immediately.

SRVY is bouncing off the 50 dma, on above average volume. This stock has been in an uptrend since December of 2005, making steady gains on strong volume and pulling back on lower volume the entire way. This stock has been acting just perfectly as it moves up the right side of the chart. The 250% run has come on good accumulation and with max green BOP sporadically all over this chart. After the powerful November breakout on strong volume and max green BOP, the stock made a series of ascending bases (article in IBD about these today) leading to the current base. This base is tightening up and looks to be coiling for a potential breakout soon as the intraday price ranges narrow. Today’s bounce, along with all the green all over this chart, makes this a very pretty chart to be long. The fundamentals were not good until recently and sales is still a bit lackluster. The EPS has been growing by 17% and 104% the past two quarters and estimates are for a 30% increase this year and a 21% increases next year. However, the sales are pretty lame. Fund ownership is all over the place going from 28 to 23 to 19 to 22. So overall there is nothing special here. Since the stock is so close to a safe cut loss with such huge potential, I believe this stock would be alright for everyone. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through immediately.

PAE is bouncing off the 50 dma and breaking out of a cup pattern, on very strong volume. This stock has been in an uptrend since January 2006, with high volume rallies and low volume pullbacks. The rally into the May 2006 was on a ton of volume and lots of green BOP. The pullback that happened right after that strong run-up was on much lower volume than the volume on the way up. Around October the stock started upwards again with BOP going green again with plenty of accumulation returning. The price move today on a volume and BOP surge, along with all the green on the chart back to early 2006, make this a very pretty chart. The fundamentals have had a major turn around the most recent quarter, after a long string of flat and negative EPS performance. EPS came in at .01 cent a share last quarter for a 125% gain. But sales have been growing 114%, 106%, 376%, and 999% the past four quarters, giving a fundamental reason for the stocks current price action. This stock is not a good long for new emotional traders as the stock is very volatile (nearest cut loss is 13% away) and the stock is too thin to be a safe long. Cut your loss with a close below the 50 dma, if the stock does not follow-through on the breakout immediately.

URZ is breaking out of a short consolidation, on very strong volume. This stock has been in a steady uptrend since the October lows last year. Along the way it appeared to put in a significant top in late November in huge volume. However, the sell-off came on lower volume until it appeared the stock broke down in mid January. The volume surged and BOP went red but price soon recovered and went on a powerful run in February. Seven straight days of gains on huge volume and green BOP shaped up the chart. It has since then consolidated those gains in a nine day short cup. The cup is very short but the volume dried up so much that today’s breakout looks good. This stock is not for new emotional traders/investors as the fundamentals do not exist. This is a story stock; the story is uranium. Cut your first loss with a close below the 4.50 level and your final loss with a close below the 50 dma, if the stock does not follow-through immediately.