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All,
I was stopped out of SMOD and EGRP stock and HM LEAP calls during
the week so I have plenty of buying power. That left me with IFMX,
INTC, IOM, PAYX, RDC, and SPF stock, BTTRX bonds, and LEAP calls on
CPQ and MADGF. This week I want to add another high tech stock, but
have decided to go with a lower priced small cap since I now have
mostly large cap positions. I had a hard time choosing among Adept
Technology Inc (ADTK) and Cymer Inc (CYMI), but finally choose ADTK
because it was smaller, lower priced, and had given a MetaStock
Coppock Curve buy signal. Maybe CYMI will be ready next week. ADTK
makes "intelligent automation hardware" or for the sci-fi fan in all
of us, robots. They are designed to handle, assemble, and package
products in the electronics, appliances, automotive components, and
pharmaceuticals industries.
ADTK at 14 7/8 is in a well defined Short Term Up Trend Channel
(STUTC) with the top at 17 3/4 and the bottom at 12 1/2. It has
essentially followed the center line of that channel up since mid
December 97. ADTK hit an all time high of 20 1/4 in April 96 then
fell back to a low of 5 in Aug 96. From there it worked its way back
up to a 52 week high of 16 1/2 on 10/24/97 and then fell back to the
bottom of its Intermediate Term Up Trend Channel (ITUTC) at 7 5/8 on
the day before Christmas. It then bounced off the bottom of the ITUTC
and formed the STUTC I just described. It broke out of the Short Term
Down Trend Channel on 1/29/98 on good volume and has moved up every
since then. I got a MetaStock Coppock Curve open long signal on
2/2/98. I put it on my watch list and have been waiting for a
pullback to the bottom of the STUTC, but have decided we may not get
it. This looks like a stock that is going to hug the centerline of
it's up move. Since It's now slightly below the centerline, this may
be as good of an entry point as we will get. The fundamentals are
good with a price/sales of 1.25, no debt, current ratio at 3.7, 20%
insider ownership, 40% annual sales growth, and 400% annual income
growth. I'm going to open a position Monday. I'll set the initial
target just under the 96 high at 20 and the stop just under the STUTC
at 11 3/4.
I'll send a chart to everyone on the email chart list. If you
aren't on it and want on it, just yell.
Jim
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