This Stock Is Growing Earnings At 100% A Quarter

  • December 11, 2003
  • Tim Truebenbach

The
major averages saw a rally finally unfold today, but volume
came in lighter than yesterday.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121103-06.gif” />

image src=”https://tradingmarkets.com/media/2003/Tim/tt121103-01.gif” />

This rally may not hold
short-term, unless we start to see volume come into it. Longer-term, we still
seem to be locked in a solid uptrend since we have yet to see any consistent
distribution in the indices. The Nasdaq, for example, has shown only 3 in the
last 7 trading days.

Leading stocks bounced back
fairly hard as well. Nursing home names such as Odyssey

(
ODSY |
Quote |
Chart |
News |
PowerRating) and Vista
(
VSTA |
Quote |
Chart |
News |
PowerRating)
are examples, but volume was below-average indicating not a lot of conviction
quite yet.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121103-02.gif” />

O2
Micro
(
OIIM |
Quote |
Chart |
News |
PowerRating)
provided a solid bounce from support as it rallied off its 50-day moving average.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121103-03.gif” />

Yahoo!

(
YHOO |
Quote |
Chart |
News |
PowerRating) held its 50-day moving average once again, setting a higher low
from this correction. The stock is still growing earnings at 100% a quarter
and appears to be able to provide solid market leadership moving forward.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121103-04.gif” />

This correction did a lot
of devastation to growth stocks and will need time and base-building to repair
the damage. Genprobe
(
GPRO |
Quote |
Chart |
News |
PowerRating)
and American Pharmaceutical
(
APPX |
Quote |
Chart |
News |
PowerRating)
are two stocks that may be further along than most names. Their handles appear
a little steep (greater than 15%), but the correction was fairly severe.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121103-05.gif” />

This is the time to insist
on companies with strong earnings and sales. Stick with the leading industries
in the market with many names showing strength against the market’s backdrop.

Have a great weekend!

Tim Truebenbach

timt@tradingmarkets.com