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Hi Jim, I've been following your posts for some time. GMH came up in a scan I
ran last night--assuming it doesn't fall out of its trend channel today, it
should be a good pick tomorrow or day after. Your system that identified GMH
seems quite good, but perhaps it needs to be tweeked alittle for its entry
point. At some point when we both have time, I'd like to compare notes, since
we are both coming up with similiar stocks, using different technical
indicators.
Regards, Jan Robert Wolansky
Jim Greening wrote:
> All
> This was an interesting week in which I added AOL, AMZN, and ATHM to my
> portfolio and was stopped out of AMZN and RDC. I hate to add a stock and
> delete it in the same week like AMZN, but I guess that's the way the system
> works and it has been successful for me. The good news is that my portfolio
> is up again for the week. As long as that continues to happen I won't
> complain -- too much <G>.
> January is over and so is my experiment with the small cap beaten down
> stocks for the January effect. The only one I have left in my portfolio is
> MDM which is up a little over 20%. Along the way I closed COHU for a 11%
> gain, ROW for a 10% loss, IDTI for a 6% loss, SDTI for a 80% gain, SIF for a
> 15% gain, SHRP for a 15% loss, and RDC for a 27% loss. That's not bad
> overall, but we didn't have any of the triple digit gainers I was looking
> for. Looking at the indices, it still seems that the market is favoring the
> large cap, solid earning, market leaders, so that's where I'll concentrate
> except for a few bottom fishing expeditions that I can't seem to resist <G>.
> For example, I'm still watching the oil stocks for their long awaited turn.
> I'm still a little concerned about the way the DJI is acting, as it
> keeps falling below the bottom of its Short Term Up Trend Channel (STUTC)
> and then crawls back up into the channel only to fall through the bottom
> again. The result of this action is that it is paralleling the bottom of
> the channel up which isn't all that bad, but I would feel better if it would
> climb back into the channel and stay. To offset that we have the NASD OTC
> Index which keeps setting new all time highs. To me, that means I should
> continue to cautiously add long high tech momentum type plays. However, I
> have enough Internet exposure and wanted to look into some other high tech
> areas this week. I think that I've done that by finding Hughs Electronics
> Corp (GMH).
> Hughes Electronics' operations are overflowing with space. This
> publicly traded commercial electronics unit of General Motors (GM) is
> charting the heavens to establish itself as the market leader of the
> commercial satellite services industry. It has made almost 40% of the
> world's commercial satellites currently in operation, transmitting
> everything from telephone calls and video conferences to TV news reports and
> TV programming. Its subsidiary DIRECTV is the largest satellite-TV
> broadcaster in the US, offering more than 185 channels of programming to
> more than 3.6 million customers. Its equipment arm is a top supplier of
> wireless phone networks and cellular mobile systems. It also owns 81% of
> PanAmSat, a 17-satellite (with six more expected by late 1999) global
> network and supplier of satellite-based business networks, and is developing
> SPACEWAY, a global geostationary spacecraft system providing business and
> consumer telecommunications services. It has been divesting its other
> electronics interests to focus on communications.
> GMH at 49 1/4 is in a well defined STUTC. I constructed the STUTC from
> the 12/18/98 low to the 1/18/98 high using the MetaStock Standard Deviation
> channel. The top with the deviation set at 2 is 57 1/8, the bottom with the
> deviation set at 1 is 48.92. GMH made an all time high of 57.88 on 5/13/88
> and then went into an intermediate term down trend to a low of 30.38 on
> 10/08/98. From there it recovered and pulled back again to the 12/18/98 low
> then moved steadily up and broke out of the down trend channel on 12/31/98.
> It then went on up to define the current STUTC. The Tema Binary wave and
> Qstick are both positive and rising with the Binary Wave making an
> especially strong showing. The fundamentals are OK with the price /sales a
> little high at 8.97, and debt/equity great at 0.09. It's sales and earnings
> have been negative as it shed its other businesses, but the recent strong up
> move suggests that most of that is behind it and the decks should be cleared
> for new growth. I'll open a position some time Monday. I'll set my initial
> target just under the top of the STUTC at 57 and my stop just under the
> bottom of the STUTC at 48 3/4.
> I'll send a GMH.GIF chart to everyone on my email chart list.
>
> JimG
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