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Hello stock fans. A very rough week this past week as I mentioned we could expect in last Sunday's letter.
This week should be less volatile as there are fewer economic reports due out and fewer earnings reports as
well. However one company that should move the markets is due to report on Wednesday and that company
is Cisco Systems (CSCO). The company has recently said its core business is not growing, but does see growth
through acquisitions.
The DJIA chart is improving while the SPX and the NASDAQ remain the weakest looking as of today. These
charts of course will improve as soon as the street can be reasonably sure that earnings growth will improve.
With the money supply now growing at record levels we should be see earnings starting to come through on
a majority of stocks within a quarter or two.
Stocks that are performing well now of course are the ones that are posting superior earnings now. This past
week a number of companies posted very good numbers and it's these companies that I'll continue to focus
on. When the market turns more positive it's going to be the stocks with the very best earnings and products
that outpace all other stocks in the market. Here are a few that showed well this past week and could be the
best movers over the next 2 to 6 months.
E. S. S. Technology. (ESST) This semiconductor and software company just posted earnings for the quarter
ending in December. Earnings are up 429% to .37 and revenues are up 58% to over $83 million. There are
just over 41 million shares on this stock with about 25 million that oat. P/E is a modest 42, which leaves
plenty of room for P/E expansion. Stocks with this kind of growth can often see P/E's of 60 to 100 depending
on the frenzy in the markets. The stock has been correcting since the rst of December so it won't be long
before this stock could be on the move to much higher ground.
Giliad Sciences (GILD) This Biotech stock is an institutional favorite and one of the leaders in the Biotech
group. Of course the Biotech group is in the midst of a correction so this stock's movement is probably
subdued. When this group bottoms or turns around the upside potential of this stock should be realized. For
the quarter ending in December revenues grew by 54% to over $74 million and there were no earnings as of
yet. This stock does have some good drugs in the pipeline and this group always moves on the drug pipeline.
This stock is ready to breakout so let's take a look and see where that will be.
Multimedia Games Inc. (MGAM) This stock just exploded out of a base on near record volume and for good
reason. Earnings for the quarter ending in December were up 717% to .49 and revenues were up 173% over
$58 million. There are only about 8.1 million shares total and only about 6.8 million shares that oat. Here is
their website so you can see what they do and then on to their chart.
http://www.multimediagames.com
Other companies that reported outstanding earnings during this earnings season and were highlighted in
this letter during past 10 days were, ACTN, AMZN, ELON, GNSS, N.V.R., BZR, and EXPE. . All of them have the
same growth characteristics as the stocks listed above. If you would like to see these reports you can go to
the newsletter archives in the web site and type in the stock symbol, which should bring up the dates in the
letters they are located.
MODEL PORTFOLIO
Beazer Homes (BZH) hit the buy point of $83 on Friday, so 700 shares goes into the model portfolio at $83.
The home building group is one of the strongest groups in the market today with most stocks hitting new
highs regularly. All of the stocks listed above are also potential candidates for the model and soon I will add
some more of these.
See you with many more stocks tomorrow.
Daniel J. Zanger
www.Chartpattern.com
Copyright © 2021 Daniel J. Zanger
All rights reserved. Do not duplicate or redistribute in any form.
CHARTPATTERN.COMTM - Technical stock analyst and World Record Holder Dan ZangerTM shares
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