Small Cap Stock Picks Technical Analysis: 7/28/08
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Small Cap Stock Pick #1
???? has an awesome looking stock chart price broke out from the horizontal resistance mark around $10/share monday on heavy volume in the face of a collapsing market. This breakout suggests a possible move to fill the gap in the low 13 area which implies a possible 30%+ potential gain here. Looking at ???? #’s they expect some very strong earnings growth nearly 75% in 09′ which is quite significant as i don’t see these kind of estimates very often in this weak ass economy we’re stuck in currently. Analysts are expecting .68eps in 09′ which gives ???? a future fair value among its industry peers of $16.10/share compared to its closing price of 10.17 monday. We alerted our members of ???? near the close Monday and entered a position at 10.06.
Technical Analysis:
Small Cap Stock Pick #2
??? has been making a huge run in 08′ starting off the year around 2.50 and currently closed at its all time high of 8.87 Monday on an excellent looking ascending triangle pattern with heavy volume confirmation. This is a very bullish pattern as price broke out of a strong pattern to all time highs on volume with nothing but blue skys and no resistance ahead. And this stock is still undervalued at these prices. Taking a look at the analyst estimates for ???’s forward earnings of .85 and an industry average earnings multiple of 19.33 this suggests that ??? carrys future fair value among its industry peers of $16.43/share compared to todays closing price of 8.87. We alerted our members of this stock near the close Friday and entered long at 8.94.
Technical Analysis:
Small Cap Stock Pick #3
???? has one of the most impressive undervaluations ive seen in a while and i still don’t understand why this stock has been beaten down so much other than this dry economy and bearish sentimented market. But Things look like they might be making a turnaround for the better as ????’s stock chart is shaping up nicely from a technical analysis point of veiw with a strong bottoming ascending triangle pattern and large volume spikes in play. This stock is deeply depressed in value among its peers in the specialty chemicals industry as they are expecting a 65% increase in revenues for 08′ on .25eps and looking forward they expect to report .31eps giving this small cap a very attractive forward p/e ratio of just 2.52x compared to the industry average trading multiple of a whopping 34x earnings! Given these estimates, theoretically ???? is fairly valued among its trading peers with a share price of .31eps x 34 P/E = $10.54/share or 1250% above Mondays closing price of just .78. I alerted my members to go Long ???? at .84.
Technical Analysis:






