Just noticed EVOL recently after is Xmas eve huge 28% rally and quite impressive breakout. Looking at the past 3 years EVOL has been fairly unsuccessful at maintaining profitabiltiy until they pulled out a small annual profit of .06 eps in 2006. It appears they will report around .16 eps for the year of 07′ and analysts are expecting earnings of .27 in 2008. Given these estimates EVOL is fairly valued within its industry at around 9.18/share compared to todays closing price of 3.06. This gives us upside potential of nearly 200%.
Technically this stock has been in a downtrend ever since the tech bubble of 99/00 . Recently in 07 price has stabilized and as of dec 24th this stock has returned to the favor of a bullish trend and a hot looking stock chart. Price broke through the double top resistance on heavy volume and a strong 28% rally. With such a strong move we should expect some profit taking into tomorrows session. I think it will provide us with a good opportunity to pick up some shares around 2.80 - 2.40.
