Technical and Fundamental Swings

Discussion in 'Trading' started by mrswing, Feb 20, 2004.

  1. mrswing


    It's Larry Swing getting back top you again with some of my top technical and fundamental swings. Today's trading ideas have been selected from 382 public companies expected to report interim results during February 20 to 26th. of 2004. Enjoy!

    Would you like to make money in the stock market in less than two weeks? Well with the right training, knowledge and tools this can become more than a reality. More and more investors are learning the art of swing trading at my website

    Swing trading involves the practice of buying or selling equities for a profit within a 1 to 10 day time frame. If you want to learn more about swing trading you will find the best educational material, trading tools, and quality swing trading ideas all at

    But for now here are some of the fundamental and technical criteria I look for when generating top quality trading ideas for my subscribers.

    Fundamental Criteria

    Fundamentally I look for:

    *companies reporting earnings between Feb. 20 to 26th. of 2004
    (for today's swing ideas only)

    * companies with proprietary technologies, products or niche markets

    * companies with a knowledgeable, aggressive and experienced management team

    *companies that have reported consistent revenue (top end) and earnings (bottom end) growth figures over 1, 3 and 5 years horizons

    *companies with short-term earnings growth rates above 100% and long -term growth rates above 25 to 30% are preferred

    * companies that have displayed earnings surprises on average of 35% and above for the last 4 to 12 reporting periods

    * companies with a consensus analyst rating above 2.0 or Buy

    *companies with rising consensus analyst earnings revisions

    * companies with a PEG ratio less than 2.0 (the PEG ratio is a common valuation ratio calculated by dividing the F1 P/E ratio by the long-term growth consensus estimate. A low PEG ratio could indicate that a growth stock is undervalued.

    *companies with minimal long-term debt, increasing cash flow and improving net margins

    *companies that are outperforming industry competitors (peers) both technically and fundamentally; in the short and long-term

    Technical Criteria:

    Technically I look for:

    *companies with particular trading patterns that are ready to break-out and ultimately outperform in the short-term

    *companies trading close to their 52 week highs; preferably above 80% of the stock's 1 year high

    *companies with rising on-balance-volume, relative strength, and momentum

    *companies that are displaying abnormal increases in volume (paying particular attention to both 1 to 5 and 5 to 30 day volume ratios)

    *companies that are consistently outperforming industry and sector peers by share price appreciation (1 week, 1 month, and 1 year)

    *companies that show a short-term stock score above 80 (my proprietary stock score is derived from 25 different technical indicators)

    In summary, we have reviewed many of the technical and fundamental criteria I utilize when generating quality swing ideas for my subscribers. Let me put it all together for you below. Enjoy this weeks swing ideas!

    Top Technical and Fundamental Swings

    Interim (%) (%) (%) (% Of) Report Technical Avg. EPS Sup. This Yrs. Last Yrs. PEG 52 Wk.
    Date Sym. Stockscore Last 4 Qtrs. Grth. Rate Grth.Rate Ratio High

    Feb. 20 SGMS 63 6% 35% 326% 1.1 86%

    Feb. 23 CRDS 65 21% 46% 52% - 70%

    Feb. 23 HOV 43 24% 40% 83% 0.5 70%

    Feb. 24 ADEX 89 147% 219% 69% - 75%

    Feb. 24 SAFM 78 33% 30% 115% - 96%

    Feb. 24 WIND 73 18% 64% 72% - 98%

    Feb. 25 APPX 58 37% 60% 200% 0.7 80%

    Feb. 25 PTEK 72 21% 2100% 127% 0.8 93%

    Feb. 25 RBA 75 33% 31% 40% 1.6 92%

    Feb. 26 RGCI 71 21% 29% 360% 1.8 100%

    Feb. 26 VSTA 45 43% 87% 120% 1.2 71%

    Note: As stated above, this years and next years growth rates refer to earnings per share (EPS) growth rates i.e earnings growth from 1 cent per share to 3 cents per share from one year to the next would indicate a 1 year EPS growth rate of 200%.

    To understand the chart above, let's look at one fast growing Company expecting to release earnings on Feb. 24, 2004:
    Company: Ade Corp. (NASD:ADEX)

    Ade's data is displayed above as follows (left to right):
    *technical score of 89 (bullish-long)
    *reported average earnings surprises of 147% in the last 4 quarters
    *analysts estimate this Company will grow by 219% this year
    *the Company grew by 69% in the last 4 quarters
    *the firm has a PEG ratio is unknown; no long-term growth forecast
    *the stock is trading at 75% of its 52 week high

    Larry's Favorites


    Stocks Hitting New Highs/Unsual Volume:BIIB,FL,IDSA,LACO,PGFI,

    Stocks Hitting New Lows/Unusual Volume:pHK,SOBI,SYNF

    Recent Upgrades/High Volume:BIIB,CTCO,CTL,ELN

    Recent Downgrades/High Volume:BLS,SBC,EP

    Note: The best way to capitalize on my swing ideas is to invest in one or more of my value-added subscription services. I want to teach you how to swing trade successfully. I challenge you to put my knowledge and trading success to work for you today!