Tuesday, September 25, 2007
Stock from Monday's downgrades...
I found CUB using my usual Barchart downgrade's methodology on Monday after the close. Good looking stock in general, but I am concerned about valuation as it has just exploded in the last 6 months. Okay, the rundown:
Stock down on a downgrade--PERFECT!
Total Revenue--Great
Net Income--Started early 2000's nice, but hit an air pocket in 2005 and are now trying to come back
EPS--Follows net income
Margins--Rising since 2005, but below 5 year high
Debt--Being paid down
Share count--Flat
Year-over-year--Looking great, almost 100% increase
Dividend--Nice to see, a little low
Institutional Ownership--Nice at 40%
Short Stats--~9% in August, 5.2 Ratio,
Earnings--Good history of beating earnings although some major misses, good y-o-y growth since 2005.
In short, I like it. It took off this afternoon, but I am not going to rush into this trade given the stock's lofty run of recent. Looking for $39.50, although ultra-conservative would be ~$34. That would give me an initial stop loss around $36.50 and first target of $49.375. I'll enter alerts and see what happens...
For now,
Masterjaz out
Stock down on a downgrade--PERFECT!
Total Revenue--Great
Net Income--Started early 2000's nice, but hit an air pocket in 2005 and are now trying to come back
EPS--Follows net income
Margins--Rising since 2005, but below 5 year high
Debt--Being paid down
Share count--Flat
Year-over-year--Looking great, almost 100% increase
Dividend--Nice to see, a little low
Institutional Ownership--Nice at 40%
Short Stats--~9% in August, 5.2 Ratio,
Earnings--Good history of beating earnings although some major misses, good y-o-y growth since 2005.
In short, I like it. It took off this afternoon, but I am not going to rush into this trade given the stock's lofty run of recent. Looking for $39.50, although ultra-conservative would be ~$34. That would give me an initial stop loss around $36.50 and first target of $49.375. I'll enter alerts and see what happens...
For now,
Masterjaz out
# posted by Masterjaz Out @ 2:30 PM 
