Howdy Everybody!
TNSI - GOOD BEAR TRAP STOCK!
Open up the W.I.N.S. tool shed and pull out your (W)ithdrawing and
you PUTs (S)ideshow tools. David found a good one! Let's review the
clues to this one.
TNSI P/E VALUE - On The Rich Side!
TNSI is a technology network services stock with a 25% growth rate
vs. a 29.5 P/E when the entire industry group averages 17.6 P/E.
NASDAQ: (TNSI : $23) $281 million Market Cap at September 11, 1998
Trades at a 67% Premium PE Multiple of 29.5 X, vs. the 17.6 X average
multiple at which the Communications Equipment SubIndustry is priced.
TNSI TECHNICAL CHART</B?
TNSI price just tagged the upper BB and the RSI approx. 70 is at the
extreme pivot point based on the TNSI history for the past two years.
It would be safe to assume TNSI is about to (W)ithdraw due on profit
taking and start cycling downward. This is ONLY a short term
correction! A quick kahuna sideshow folks!
bigcharts.com
TNSI is about to make a new 52-week high surpassing July's high of
$24 7/8s. TNSI float is 4,200,00 shares and the trading volume on
Friday was massive! TNSI traded 924,100 (22%) shares when normal
trading has been averaging around 92,200. The normal float turnover
for TNSO is 45.55 days which is a moderate paced stock. That signals
a hard push by the serious money as new people jump on board only to
have the rug pulled away! Trading on Friday lanched TNSI 2 full
points (9.2%).
Date Close Change Percent Day High Day Low Volume
Sep 11 23 +2 +9.52% 24 3/8 22 1/4 924,100
Sep 10 21 + 1/2 +2.44% 21 3/4 17 5/16 177,000
Sep 09 20 1/2 + 1/16 +0.31% 20 1/2 19 5/8 98,000
Sep 08 20 7/16 +2 3/16 +11.99% 21 1/2 18 1/2 113,800
Sideshow ToolS?
Monday market open should see a TNSI gap upwards! That would be a
perfect time to lock in CHEAP PUTs! Remeber, as TNSI price goes
up, the PUTs cost goes down fast! You could also short the stock
itself. There should be no problem picking up shares as the herd
heads for the exits.
TNSI SHORT INTEREST IS BUIDING UP! NICE CLUE :-)
08/98 351,971 95,958 3.67 <==== day are up and should increase!
07/98 103,382 66,985 1.54
06/98 76,649 57,152 1.34
05/98 76,793 60,253 1.27
04/98 93,775 18,659 5.03
03/98 93,699 27,734 3.38
TNSI PUTs TO BUY - OCT
OCT 17.5 PUT @ 3/4
tscn.com
OCT 20 PUT @ 7/8
tscn.com
CONCLUSSION?
It is only opinion that TNSI has a high slant towards repeating a new
high followed by a profit taking pull back. A trading range guess is
a high of $27 down to $18 before recovery. Zack's research list TNSI
as a moderate buy and the next TNSI earnings report is due out
10/26/98. I can see TNSI pull back sharply for the next week and then
rebound upwards as the late October earnings release approaches.
I'm feeling good about this one! You folks will have to look at the
risk/reward to determine for your self. |
