DJIM hold/hit list #13

Back in October, we stated that November is seasonally a strong quarter for small caps.     Near the end of October, we stated that we just could not wait till the small cap earning season to start.    Well, we aren't disappointed, so far.       Maybe  it seems that all we had to do is to come back from a 8 month vacation and trade from November till February.    Now that would just be too easy plus we could have missed all the DJIM action from late August..just go to the Journal Archive.  The truth is, without the hard grind of the summer, without going through the emotional roller coaster with the market from the first trading day of the year, none of us would stay as focused, or sharp when the time mattered the most.     Well, here we are now.   We have had literally a stream of awesome small cap action last few days and we are trying our best to make the most out of it.    It means all out for us.    Folks, if you hadn't committed much time, energy, capital or effort into the market last few days, we'd say you are gonna be sorry a few months down the road.     Here are some plays we really like that showed up last little while...

ATNI, this is definitely not a flashy stock like some of the other heavy hitters.    It has very good earnings and it moves in stealth mode.   Before you know it, this thing can move 20% without making any kind of headline.    It broke out on Friday and we are keeping a close eye on this one. We added back. Friday looked like the day it would break all those candle wicks on the daily. http://djmarkets.squarespace.com/journal/2006/11/1/atni-atlantic-tele-network.html

GMKT, this stock had a very powerful move on its earning day and it smelled lots of institutions stepping in to bid it up.    A very sexy business and a dominant player in its area and with the holiday coming up, we think this one is gonna be in play for a while.

DLB, wow what a report this one had.   Ok, this isn't exactly a small cap but man you gotta give those guys a thumb up on their execution.   It took out multi year high, literally in one day of trading.    Now it may not give you another 33% gain day anymore but we bet it caught lots of people's attention on Friday.

Reports Q4 (Sep) earnings of $0.22 per share, $0.11 better than the Reuters Estimates consensus of $0.11; revenues rose 29.4% year/year to $102.1 mln vs the $83.8 mln consensus. Co issues upside guidance for FY07, sees EPS of $0.83-0.92 vs. $0.75 consensus; sees FY07 revs of $420-450 mln vs. $405.67 mln consensus.

MEK, it made it to IBD #5.   How will trade from now on?   We think it could trade with the group but with a better beta action.   Other plays we also consider in the same genre include BTJ ALY FTK. 

TRT, ah ha!    This one is not an unfamiliar name, far from it.     The latest quarter simply confirms the status of the stock, it's not going to be a micro cap anymore.   Bring it on Zeff boy!.  Nothing new to say, just scroll down our pages or go to the archives to get your TRT fill.

EDU, didn't we say this one could make some easy money?  Lol  Ok, nothing is easy in this business.   What this stock did the last few days, is simply giving back to all the believers and followers of DJIM site. Same as TRT, you can find your fill of EDU write ups as it seemingly has been with us since day one.....3 rides now!..Recycle, recycle we say. If EDU doesn't cut it one day....MR has picked up the slack and vice versa.  Late this week MR hit a new high 20.57. DJIM's Super Ninja's are sure to provide more excitement.

FSYS, this play is new and we think it can get some legs out of its report. We put an eye out on it early Friday morning in MC, its action perked up and we entered.Reported Q3 EPS of $0.22 vs -$0.63 in 3Q05; (est.$0.13c), revs rose 13% YoY to $55.4 mln vs.44.1 mln est. Co' raised 2006 rev guidance to at least $210 mln, up from previous guidance of $200 mln.  This alternate fuel segment needs some new trading blood, maybe Fuel Systems Solutions will be it.

AAON, we introduced this earning gem Wednesday morning. Not only did it take out the $25 we spoke of, it took on $26 Friday. Definitely, a A-Team member!

GLDN, we also introduced back some Russian blood with this Telecom/Internet provider. Volume has really picked over October and into early November with its earning release. 35% revenue growth, 40% net income YOY, 16% revenue, 7% net sequential growth.

RIMM, yep...we raised the RIMM flag as it became the 11th 25+% move in 12 weeks of DJIM. The action Thursday left it with a little toppy action. Every other day they seem to have a need to strike a blow into RIMM, Friday it was MOT's deal with Good Tech. This has been going on endlessly and RIMM just keeps making new highs. Nothing is wrong with RIMM for those wanting to play it out further, but we feel there are better chances of a finding another 25% move elsewhere...faster. We'll still keep a close eye on it as it's in the Constitution of Canada to do so;)

EFUT, is one we are trading as the Yahoo's are all over it. Definitely not for those that plan to have many bathroom breaks during the day.

It was just on Halloween that we took a cautious stance as many of the DJIM stocks felt toppy, by the close of Friday November 3rd we started to use up the cash with 6 or 7 buys. The names are changing, growing fast and furious during the past week. Buy the strength and don't sit on the UCTT's that are clearly lagging the uptrend.  Honestly, what are you waiting for?  You also have plenty of oil/energy names to rotate in and out of depending on the oil picture. If you have your DJIM list close by and have created a watchlist/buy list of these stocks, last week was a very fruitful one.  For more DJIM names read the commentary of the past week plus glance over the charts for ideas to trade.

Jon/ Demi

December...bring it on!

The faces, the symbols may change but one thing that doesn't change is trading the probabilities that are in our favor. This simply means going with where we see momentum. Yesterday was day 1, today was day two in trading where the probabilities for profits were in our favor.  One theme that emerged yesterday was the Russian telcos, we didn't see it in print or hear anything about it later, so may we were a little delusional at the onset yesterday.  But then the action spoke as MBT's earning really spilled into other names, one being VIP.  If the premise is correct, one Russian bear does well, so should the other. You all know how this works when ones news vibrates to another.  Well, VIP did not disappoint,  beating handily today  Vimpel Comms beats by $0.27 (VIP)  :Reports Q3 (Sep) earnings of $1.32 per ADS, $0.27 better than the Reuters Estimates consensus of $1.05; revenues rose 21.2% year/year to $1.36 bln vs the $1.29 bln consensus. If you believed and later saw the probabilities of these companies piggy backing off each others EPS numbers, then you have been quite the point collector..as many as 8 or 9 pts off the two in two days.  The other trend widely seen is that of oil related plays. You simply go where the momentum goes and what happens is you increase the odds tremendously in favor. It's not rocket science and we're definitely no rocket scientists but just like one must have street smarts to survive... playing into human nature, the psychology of the trader/investor takes you to where the herd is, better yet where its going to be. There is 63 dollar barrels of oil on the wall.....63 barrels of oil...literally as this is the area of resistance and we are at it.  If this is wiped clean soon, a new trend most likely emerges and that is Oil clicks on.  The last few days run into this resistance area was capped today by a beautiful move out of ALY.  DJIM has its oil stocks and ALY has been here since day 1 to trade in this segment, today was its long awaited graduation as it popped 10% to $21.  If you are new here, last night Journal entry noted DJIM stocks we like to trade when this segment gets interesting. The foreign telcos, the Oils are two trends we traded in our favor...the probabilities were in our favor to finish the days... green not red!......

A few others from today...

FSYS, a DJIM alert note in the morning just before the open, spiked early from $18.4 to 19.40 before consolidating for most of the day. Volume perked up nicely after noon. We like the chart on the daily for possibly more from this recent earning play.

RVBD continues to be the resilient tech. This was noted in the morning as it tried for highs at $34 in a not so happy market. We liked the volume action as it broke $35 late in the day, even if you flipped today that's as much as 3%. We like the chart too much to flip, instead we added as the day progressed into another NCH.

CMT, a DJIM alert pick up last week continued to paint a quiet, yet nice chart closing with another NCH

BIDU, RIMM, FTEK all these had some spark from news, rumors and are looking good.  We are a bit more comfortable with the market and have increased our buying, trading the probabilities that are in our favor as we closed off November.

....Crazy Genes...

..We didn't ask for much this week...or did we?.....We just wanted to keep our 2006 gains in check and give us and you a XMAS bonus without risking much at all.....1000 shares of ESCL yesterday at say $7 & and change on the break of alert, fetched you maybe 8k, 9k, 10k,11k,12..maybe 13K back in less than a day of trading.  You know we are not of the speculative lot here at DJIM,  we don't throw spec stocks out randomly or give a stock a headline like last night for no reason.   It's not our game to risk our money or get you to risk yours... Going into this week, we said what we were looking for as DJIM stocks came off their highs ...we weren't about to start buying the dips and instead wanted to concentrate on some holiday shopping with a good return policy.   We would've been happy with $10..11 as we were happy with some $9 the day before on ESCL,  but the difference is we didn't calculate its holiday trading week (even if that was the premise heading into the week) and ESCL could even do more than last time!.   Most the day was occupied with this baby...momentum is momentum...slice it any which way...volume, exuberance equals momentum and this one definitely had the crazy genes in it to replicate its May run.   Turned out not to matter if you bought yesterday at  $7's..8's or if you had started to play it today...either way...you should be ho' ho..tonight.   Traders can decipher momentum easily, starters can just as easily...it's all about volume!.  If you're a rookie, you're not at such a disadvantage...volume is volume...all can read that!.  If you want a short term trade, 20-40k ain't going to cut it like in EVST.

The bias has been SHORT TERM trading this week. If a FFHL goes from $10 to $12 after alert in 1hr of regular trading,  we are happy for those that closed 20%+, but we are not so happy to hear one DJIM reader closed on another.. but that's the game of trading, folks.   If you believe enough to buy a stock at $12 from a IPO price of $8 ......be ready to suck it up if it turns against you for a bit.  You're playing the game, so be prepared.  Still a day doesn't make a stock, up or down the day after the IPO.

Kinda happy for all those that have held onto FSYS, a good stock that just isn't discovered. Today was a little redemption...

RVBD fought back because of TW comments premarket, still the NASDAQ needs to WAKE UP before we get excited about DJIM techs again.   Hey Cramer only brought GMKT a little further than we did..no biggie, we were there first.....POWL has kissed $33+ from our 28,  OPTM hanging in with a mildl NCH as well.

Still beyond the plays and the playas'...OEH was a nice pick up this morning for DJIM.  We've been watching for a few days and bought early today off yesterdays NCH.  If we didn't think there was more potential at $45.50's, we wouldn't have mentioned it...make a long story short...1.2mln after 60k volume alert and a high of 47.82 on the day.  First million plus volume day probably in a year for OEH (200k yesterday),  not the first record volume day for a stock after a DJIM mention without news.

Charts updated include: FSYS OEH OPTM POWL REXI and ESLC for the remaining nutbars left in it;)

..Spinning

..and getting nowhere!...Selling remains the order of the day on the indices as we close off the week.  Despite the Nasdaq now closing on a weeks low, DJIM closely followed are holding up quite well.  Unfortunately, any further breaks are stopped in their tracks by the bigger picture. If we do get a late bump up, these might be the first place to look for an extension of their highs.

OPTM is one the best acting out there and finished with another NCH after testing $27. Not a bad run from the recent alert buy at $23. We 're still adding along the day.

GLDN has been doing some xmas shopping this week and looks poised to move on. A little volume and we could see new highs again. It's slower cousin, ROS made another NCH and big bidder is still lurking around slowly walking it up.

ZOLL made another NCH and continues to slowly creep higher. It to just needs volume , but thats a hard thing to find in holiday trading.

FSYS picked up on yesterday late day spurt with more volume today. Maybe this base it broke out of yesterday is similar to the one it broke out of in early November. This one has a way of disappointing, so we're cautious here.

OEH flat lined on nice volume after its big day,  FFHL is turning over the inventory, you're in it to trade it.  Having WBHambrecht at the IPO helm should provide a trade here. They of the pump FNET circuit can get this in play.

RIMM, want to see the analysts price targets go up tomorrow..lol....before buying this back at the high 140's.

One last good day is not too much to ask for tomorrow, is it?.   You can't live on the ESCL daily.. that sort of trading stuff wipes, drains you out !

...Triple play!

Just your typical DJIM triple play;)... ..What was the question today about a 3rd wave in chat?.  Well, we really don't know what it is either and are thankful we have BT to kick it up in picturesh what we feel...  A 3rd wave seems to be wax up your 'board Bodhi...we've got a killer big wave to ride on DJIM's 3rd  FFHL alert.lol   Today was pure adding on STRENGTH all day,  if you see 'it' forming in the HMIN, FFHL, GROW's stocks...you should be attacking it!!!.  This is all we were doing today literally, we are oblivious to the market outside of our DJIM index.  Some of you must think we are nuts adding late in the day on stocks that are up 5% already like yesterday with GROW, lesser extend HMIN...but you know what!..Don't knock till you try it!..

Anyways last night,  we highlighted GROW and wanting to go 3 for 3 on the last 3 buy calls...$67's to todays $72+ is a damn good start!. There will be some hiccups along the way, but we definitely still think this baby has lots left in her.

HMIN......"No...but we did stay at a HMIN express last night"...we must've cause our dreams of HMIN being discovered were answered at the bell from last nights Journal.   Actually....last night was hardly the first time we were lovin' HMIM.  We truly think this must wear the DJIM China championship belt for a while..MR EDU can rest. Speaking of ...

MR...we think it might be ready to resume and we started adding back today.

FFHL..what can you say?.. Here come the $20, 30, 50 dollar projections..lol.  The worst part is we aint getting a day off in 2006, we thought maybe tomorrow we could sleep in on the last trading day....but ...nooooo ...this thing will be busy premarket but we have sold some AH....call us crazy after 4 points today..lol

You are always gonna get pullbacks , profit taking after nice runs and this will happen with these, but if you believe in your stock and its story you should be accumulating some for the next bump up.....

FSYS is a good example today of maybe picking some up you might've missed yesterday. Very nice day for it!. Sometimes the profit taking will will happen the next day as early today with FSYS,  sometimes the same day as you all saw recently with FFHL. 

Hopefully the last 2 weeks went to plan, the premise here was ADD to your gains of 2006 and not risk it foolishly...We think we've provided what we promised to look for...hopefully your accounts show it. 

We're sorry we haven't got back to those requesting email of the doings on DJIM.   We will have an update on this and more on DJIM 2007 tonight.