StockTalkReport.com Announces Investment Opinion on JNPR, NEWP, ALGX, SE, SCMR and DPH.
Added: (Mon Mar 04 2002)
Pressbox (Press Release) -
Stock-picking website StockTalkReport.com (http://www.stocktalkreport.com), recently awarded the best pick of the week by independent stock-pick-monitoring site Tip Reporter (http://www.tipreporter.com) issues new ratings on JNPR, NEWP, ALGX, SE, SCMR and DPH...
JNPR, (Juniper Networks, Communications Equipment) – Long, Strong Buy. After equaling its post-September 11 all-time low, JNPR flashed a reversal buy signal in Friday trading, closing near its high on decent volume. Another in the long line of beaten-down communications equipment sector stocks, JNPR’s 13-day moving average ($10.47) now appears within reach. If it is able to breach and close above this important indicator line, it appears possible that the stock will continue trending up toward the more distant 50-day MA (currently $16.08). As the channel between these two averages continues to narrow, JNPR faces its first overhead resistance of strength at $13.60 (+38% from current level). If the stock is able to break upward, look for the potential of a short squeeze as there is a fairly sizeable short position onboard JNPR. Downside support on JNPR appears to be in the upper $8 range, with no support below. If the market overall turns south, be prepared with a tight stop on JNPR to minimize any potential loss. We view the risk/reward on JNPR as excellent, with plenty of upside running room available. Target Price: $15.08 (+53.4%). Stop Loss: $8.5 (-13.5%)
NEWP,(Newport Corp., Electronic Components) – Long, Strong Buy. NEWP’s breakout move Friday showed why it would be a solid holding during a tech-driven rally. It closed above both its 13-day and 50-day trend lines on healthy buying volume. Also, this bellwether has shirked the down economy, pulling in an additional 12% in sales for 2001 (up to 318.9 million). Investors haven’t noticed though; the stock has been under pressure since trading at $40 in May. Short-term price target: $25.70 (+20%). Stop loss: $18.25 (-15%).
ALGX, (Allegiance Telecom , Communications Services) – Long, Strong Buy. A solid four-day uptrend has developed on ALGX, with volume at or above its 60-day MA, and with the stock trading significantly below book value with an improving RSI and near an all-time low, we believe this trend will continue with the potential for sizeable gains. No serious upside resistance exists until more than 100% from current level at $5.62 (+108%). There are a couple of bumps along that road in the mid-and-high $3’s, but these points are low level resistance. Also interesting to note is the large number of shorts who covered their positions in January. Target Price: $5.00 (+85%). Stop Loss: $2.35 (-13%).
SE,(7-Eleven, Inc., Retail) – Long, Strong Buy. 7-Eleven's announcement in late January that it would close as many as 120 stores is a sign this convenience-store stock is a turn-around play. Talk about undervalued - a minuscule P/E of 12, revenues are rising (up 5% in 2001) and the stock is trading near its 52-week low. Huge upside potential for a retailer that’s a household name. Short-term price target: $12 (+25%). Stop loss: $8.40 (-12%).
SCMR, (Sycamore Networks,Communications Equipment) – Long, Strong Buy. SCMR exibited a strong buy signal with conviction on Friday, cracking and closing above its 13-day EMA of $3.67. After spending about two weeks basing and building support in the $3.50 range, SCMR is now positioned for a strong upward move. With an improving MACD, stabilizing MA’s, trading below book value and an upturn in its RSI, we believe SCMR is a value at this level with little downside risk. Target Price: $5.30 (+41%). Stop Loss: $3.35 (-11%).
DPH, (Delphi Automotive Systems, Auto & Truck Parts) – Long, Buy. DPH has been one this year’s winners, tacking on 15% so far. After a two-session correction, it closed strong on Friday and seems poised for another upward move. It’s trading well above its 13-day, 50-day and 200-day trend lines, a show of amazing strength in what has been a fairly weak market. And most of the damage of last year’s restructuring seems to be behind it. It will also be helped by the announcement last week by General Motors that earnings and production will increase this year. Short-term price target: $27.50 (+8%). Stop loss: $15. (-9% ).
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