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All,
I closed out my DE position at 54 3/4 for a 12% gain this afternoon. I
had set my target on this one near the top of the Short Term Up Trend Channel
at 58. However, that was above the top of the Intermediate Term Up Trend
Channel which was at 55 today. That top had held a few weeks ago and when DE
hit 55 and started to inch back, I thought it looked like it might hold again.
Besides, I could use the funds to continue my move to smaller cap stocks and
get a foothold in the gaming and health care industries which I didn't have
any stock is. To do this, I opened a position in IVAX Corp (IVX) at 11 5/8
and Trump Hotel & Casino Resorts (DJT) at 11 3/8.
IVX closed at 11.062 yesterday. It is in a Short Term Up Trend Channel
(STUTC) with the top at 12 1/2 and the bottom at 10 5/8. It broke out of an
Intermediate Term Down Trend Channel (ITDTC) on 5/30/97. I got a MetaStock
ROC, ADXR, S/C buy signal about a week before the breakout. IVAX Corp is
engaged in R&D, manufacture, marketing, and distribution of health care
products including generic and branded pharmaceuticals. It has a market cap
of 1,245.232 million and it's fundamentals are good with a PSR of 1.13,
Debt/Equity of 0.63, and 30% insider ownership. It dropped from a 52 week
high of just over 30 about a year ago and was mentioned on CNBC as a turn
around candidate a few days ago. I set my target just under the old high at
30 and my stop just under the STUTC at 9 3/4.
DJT closed at 11 1/8 yesterday and has a pattern very similar to IVX
except it broke out of a Long Term Down Trend Channel. The top of its STUTC
is at 12 1/2 and the bottom at 10 1/2. The MetaStock buy signal was given on
6/3/97. Its market cap is 238.383 million and it also has good fundamentals
with a PSR of 0.27, Debt/Equity of 3.35, and 40% insider ownership. It was
also mentioned as a turnaround candidate on CNBC. It dropped from a 52 week
high of a little over 35. I set my target at 35 and my stop at 9 3/4.
Jim
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