Tuesday, October 09, 2007
Stock from Monday 10-08...
Good candidate in SSYS, like all the info and the business. Nice small cap name with increasing sales, net income, EPS, reasonably stable margins (with enough growth to 'hide' any margin contraction leading to growing year-over-year EPS), and no debt. Marginally high share count dilution, but for a company in this space it is not surprising and EPS growth still outpasses dilution. Institutional ownership is huge, but with 20% shares short, it is probable some of the ownership is overcounted. Also read: possible short squeeze with good earnings in the next couple quarters...
The chart worries me a little, the stock has doubled in the past year and I am always concerned finding candidates at the top. I am waiting for a pullback to $26 (50dma) before considering taking a position. I would consider a pullback to $23 reasonable as there is huge support and it would bring P/E down to a more mangable level. I would have to recify how to handle a pullback that deep as my traditional 7.5% stop loss on $26 is $24.05...I'll worry about crossing that bridge if I ever reach it.
For now, my alert is set and I am waiting.
Masterjaz out
The chart worries me a little, the stock has doubled in the past year and I am always concerned finding candidates at the top. I am waiting for a pullback to $26 (50dma) before considering taking a position. I would consider a pullback to $23 reasonable as there is huge support and it would bring P/E down to a more mangable level. I would have to recify how to handle a pullback that deep as my traditional 7.5% stop loss on $26 is $24.05...I'll worry about crossing that bridge if I ever reach it.
For now, my alert is set and I am waiting.
Masterjaz out
# posted by Masterjaz Out @ 3:29 PM 
