No New Long Positions And Two Stocks I Am Adding To My Existing Positions

July 24, 2007

It is time to stop going long stocks, for now, if you are a newbie. Just sit back and watch me trade, unless you are completely experienced at this. The market needs to restart an uptrend before newbies can even consider going long stocks. If you are not checking out the short candidates that I have been posting on my “new shorts” section, you need to start doing that. They are all working; that is bad for longs.

I really like DBTK as a company and today’s purchase will be my third buy which clearly shows that I am more than interested in accumulating this stock and that it is pyramiding like a champ despite a weak market. If this chart had max green BOP and the market was acting better I would love to advise everyone to buy some. But the market is just too skittish right now for me to feel confident in telling you to go long. Most gold members know how much I like the company, so this is nothing new for them.

adding to existing speculative/speculative CANSLIM long positions: HUB.A DBTK

HUB.A is bouncing off support near the 50 day moving average and breaking out to new 52-week highs from a two-week tight base, on extremely strong volume. This is a beautiful chart going back to April, with all the great daily intraday price action, the excellent and huge accumulation along the way with low volume pullbacks, and the green to max green BOP all the way long (except two days). What makes the chart more perfect, in the short term, is that on the recent bounces BOP has gone max green from a high green. This makes this chart near perfect. The only problem I see with this chart is that today’s action had such a powerful move higher but was thrown back well below the mid point of the daily range that it could be a possible bearish reversal. However, most of the volume was before the move higher, instead of on the move lower so that is some slight comfort. It is also more risky with the low average daily volume of ONLY 9k a day. So newbies should use limits and not load up on this one. The fundamentals are pretty darn good, with EPS growing 6% in the most recent quarter, sales growing between 3% and 18% the past eight quarters, and a ROE of 16%. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

DBTK is bouncing off recent support at the pivot point area of the July breakout from the cup with handle pattern, on strong volume. This is a pretty chart with the nice stair-step price pattern since the IPO, the nice intraday daily price action since the middle of June, the strong accumulation off the June bottom, and the green BOP in the chart since late April. What is a negative about this chart is the fact that BOP isnâ€™t fully green to max green during the base from May and this base is still very short and the stock might not be ready to run. The fundamentals are very good, with EPS growing between 92% and 999% the past eight quarters, sales growing between 49% and 68% the past eight quarters, cash flow of $.64 a share, and YOY earnings estimates for 2007 and 2008 for gains of 2% and 20% respectively. Fund ownership is growing nicely from 31 to 36 funds the past three quarters and management owns 35%, clearly showing that the smart money is interested in this stock moving higher. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

No New Long Positions And Two Stocks I Am Adding To My Existing Positions

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