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All,
I confess, all that cash is burning a hole in my pocket <G>.
I've been looking at the charts hard and came up with another small
cap pick in the aerospace industry, Banner AeroSpace (BAR). It has a
market cap of $270 Million and is an international supplier to the
aerospace industry. It distributes a broad range of aircraft parts
and provides related support services.
BAR at 12 7/8 is in a Short Term Up Trend Channel (STUTC) with
the top at 14 and the bottom at 12. It's another momentum play that
is in short, intermediate, and long term up trends. It broke out of a
five month accumulation or basing phase to a new all time high on
6/30/98 after bouncing off the bottom of its Intermediate Term Up
Trend Channel (ITUTC). I constructed the new STUTC at that point and
deleted the top of the ITUTC. [ Over the years I've found, that for
momentum plays in new all time high territory, I'm better off using
the bottom of the STUTC for a stop and not setting any target. Most
stocks blast right through the tops of longer term channels when they
are in new all time high territory and the overall markets are
trending up.] It then fell back to the bottom of the STUTC, then
jumped up strong Friday. I got a MetaStock Directional Movement buy
signal on 6/18/98. The fundamentals are exceptional with a
Price/Sales of 0.69, Return on Equity of 40%, Debt/Equity of 0.19, 78%
insider ownership, and triple digit earnings growth over the last 1,
3, and 5 years. I'll take a long position at Monday's open with a
mental stop at 11 3/4.
Jim
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