One New Speculative CANSLIM Long Position, Four New Speculative Long Positions, And One Stock I Am Adding To My Existing Position

June 27, 2007

NONE, AND I MEAN NONE, OF THESE STOCKS ARE REALLY WORTH GOING LONG, UNLESS YOU REALLY JUST MUST GO LONG FOR PERFORMANCE REASONS. NONE OF THESE CHART PATTERNS ARE CLOSE TO PERFECT. THE CLOSEST ONE IS AWH. THE BEST STOCK WITH STRONG FUNDAMENTALS IS DV. THE REST ARE BASICALLY MEDIOCRE TO GOOD CHARTS. REMEMBER, NEWBIES, THIS IS NOT THE BEST TIME TO BE GOING LONG STOCKS, WITH THE CHOPPY MARKET THE PAST FOUR WEEKS. IT IS PROBABLY BEST IF NEWBIES AVOID TAKING BIG POSITIONS IN ANY NEW LONG. CHARTS AND FULL ANALYSIS BY 4AM EST.

new speculative CANSLIM long position: DV

DV is bouncing right off the 50 day moving average, nearing a new 52-week high, on strong volume. This chart is very nice with all the green BOP that is sporadically in the chart, the strong accumulation in 2007, and the green BOP with great price action since the April move. What I do not like about this chart is that the it violated the 50 dma in February, the red BOP in March, and the lack of huge volume and max green BOP on today’s bounce. However, this is still a pretty good chart near a clear cut loss area. The fundamentals are very good, with EPS growing between 45% and 999% the past seven quarters, sales growing from 4% seven quarters ago to 13% now, ROE of 8%, debt of only 12% of shareholder equity, and YOY earnings estimates for 07 and 08 for gains of 52% and 33% respectively. Fund ownership has gone from 102 funds to 128 the past four quarters, showing that the big boys are interested in this stock. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative long positions: GEL XIDE NOVB PTP

GEL is breaking out of a three-week tight pattern, on extremely strong volume. This breakout and volume refers to yesterday’s move that somehow I missed. I am not sure why or how I could even miss something this nice. I am not sure if I scanned right over it or if maybe something was missing yesterday and caused it to be excluded from my scan. However, I found it today and that is all that matters, especially since it still within a safe buy range. What makes this chart pretty is all the max green BOP during April and May, the nice solid uptrend since 2005, the strong accumulation that has started coming in around April, and the surge in BOP to near max green and volume on the 6/26 move. The fundamentals are not good, with EPS bleeding red ink the last two quarters, sales showing negative growth for four quarters in a row now, ROE of 11%, debt of 9% of shareholder equity, and YOY earnings estimates for 07 and 08 for 9% and 64% gains respectively. Funds are not really interested in this stock, with only 3 funds owning the stock up from 2 four quarters ago. This is not a good long for newbies due to the poor fundamentals and low average daily volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

XIDE is bouncing off of support, near the 50 day moving average, and breaking out past recent resistance, on above average volume. This move is a confirmation move off the 50 dma on huge volume on 6/22. This chart is very nice with all the green to max green BOP in this chart since late October, all of the strong accumulation with low volume pullbacks since November, and the decent action this stock shows around the 50 dma. What I do not like about this chart is that it sells off on low volume beyond logical support levels, making it very hard to hold. This is why I am buying it new again, instead of adding to my position. Early June shook me out. And that is what is not attractive about this chart. Also not having BOP green to max green during the May period also hurts. The fundamentals are not very good, with EPS just hideous, sales growing 5% and 10% the past two quarters, and debt of 202% of shareholder equity. Despite that, fund ownership has grown from 9 to 10 the past four quarters. This is a very pretty chart but still does not make a good long for most traders due to the very poor fundamentals and the very speculative nature of this stock. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

NOVB is breaking out over the 50 day moving average and breaking out to new three-month highs, on below average volume. This stock is very pretty but the volume has been way too small for anyone to really care. In September the stock started to move higher on max green BOP which led to the early January 2007 breakout. That breakout on large volume with BOP going max green again led to the most recent powerful rally and base. The recent base has come on very low volume leading to todayâ€™s breakout. Todayâ€™s bounce with BOP being max green, along with the chart pattern going back to October, makes this a very pretty chart. The fundamentals are very solid, with EPS growing between 7% and 26% the last four quarters and sales growing between 7% and 32% the past eight quarters. However, EPS and sales are slowing. The low sales growth combined with the lack of fund ownership increases, along with the very illiquid stock (only averages 23k a day), makes this too risky for newbies. The other thing about this stock is that I would make this a limit order ONLY. Do not overpay for this stock. Cut your loss with a close below the 23.42 level, if the stock does not move higher immediately.

PTP is bouncing off the 50 day moving average, on above average volume. This move confirms the move off the 50 day moving average from 6/22. I am not that stoked on this chart. I do, however, like the great price action with support at the 50 dma, the recent green BOP showing up in the chart, and the recent accumulation that has been showing up. I do not like that there is not more huge accumulation days in this chart and there is not a long stretch of green to max green BOP anywhere on the chart in 2007. It is nice that BOP recently went max green but it has not stayed that way so I am not going to get too excited. The fundamentals are not good, with EPS bleeding red again, sales bleeding red the past five quarters, debt of 16% of shareholder equity, but ROE is a strong 19%. This is strictly a play on the chart and is not a good long for newbie traders. If you do go long this stock (this goes for everyone), make sure you keep it small. I am not that impressed, but it does appear that it is going higher. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

adding to existing speculative long position: AWH

AWH is bouncing right off the 50 day moving average, confirming the move from three days ago, on extremely strong volume. This chart is pretty with all the green BOP from September to October of last year, the solid base that led to the uptrend in April, the green BOP during th April to June move, the heavy accumulation since the May move, and the nice BOP surge to max green with volume and price the past four days. This chart is nowhere near perfect but the move today is very pretty. Definitely worth a poke. The fundamentals are a bit mixed, with EPS growing between 11% and 999% the past five quarters, sales growth all over the place the past eight quarters, ROE of 26%, and outstanding debt of 22%. Earnings estimates for YOY growth for 2007 and 2008 are for drops of 14% and 1% respectively. The poor fundamentals are enough reason to keep this one small. Cut your loss with a close below the 50 day moving average if the stock does not move higher immediately.