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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: jazzallnight who wrote (111743)	8/12/2000 1:12:30 PM
From: Jenna	Read Replies (4) \| Respond to of 120523

The Misconception of Technical Analysis (Momentum) Traders. Technical Analysts tend to dismiss the importance of a company's fundamentals. They think that when they are finding chart signals triggering a buy they have cornered the market on strategical trading. They are dead wrong. What they are simply doing is confirming with their candlesticks, trending indicators and oscillators that it is these very same fundamentals that they are dismissing are just what is causing this stock to rise in the first place. Were it not for this underlying fundamental strength the stocks would NEVER be moving. Of course with the negative polar pull of a down market, some of the good companies are dragged down with the bad. Psychology and market sentiment does have a way of winning out in the short term. There are other stocks like ANEN, SAPE, EMLX, ADI, MVSN, AMRI,AZPN that flourished after the earnings report. Would the technicians have preordained their rise on technicals alone? Does the fact that these stocks will become our future high flying daytrading picks have to do with technical analysis alone? Were TLGD, NEWP and ELNT such fantastic trades for weeks because their charts were good? Why were they good? Don't you think that their triple digit earnings acceleration quarter to quarter had just a little to do with their incredible rises? A chart is nothing more than a mirror image of the stocks health. By getting lists of fundamentally strong stocks you will also have lists of the best technically positioned stocks. If technicals are lagging fundamentals like in CLRN and ADTK, they might conceivably catch up in time. At least there is a chance. When they do catch up the move is usually explosive. Ironically its the fundamentally sound stocks that make for the best daytrades and in some cases, swing trades. Here is where I draw the line. I would not necessarily invest in these stocks because of the pull and tug of market sentiment will eventually sink even the strong stocks. But for trading that's the way to go. I have followed both CLRN and ADTK (and a number of others) that have come out with really good earnings report but the stocks were not reacting to the good reports. What I do is just bide my time, keep them on watch and at the first sign of a techical breakout, pounce. But momentum traders were not likely to be watching these stocks in the first place, have them on their watch lists because they don't realize the complete picture of a stock is the most import predicator for a strong price move. Adept Technology Reports Record Annual and Quarterly Revenues SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 3, 2000--Adept Technology, Inc. (Nasdaq: ADTK - news), a leading designer and manufacturer of intelligent automation products, today reported financial results for its fourth quarter and fiscal year ended June 30, 2000. Record net sales for the quarter ended June 30, 2000 were $28.1 million, an increase of 15.5% over revenues of $24.3 million for the fourth quarter ended June 30, 1999. Adept reported net income, before amortization of goodwill and other intangibles resulting from Adept's acquisition of two companies (``amortization expense''), of $0.9 million or $0.08 per fully diluted share for the quarter ended June 30, 2000, versus net income of $0.7 million or $0.07 per fully diluted share, for the quarter ended June 30, 1999. Including amortization expense of $0.7 million, Adept reported net income of $0.3 million or $0.02 per fully diluted share, for the fourth quarter of fiscal 2000. Clarent Reports Record Second Quarter Revenue Revenue Growth of 204% REDWOOD CITY, Calif.--(BUSINESS WIRE)--July 27, 2000--Clarent® Corporation (Nasdaq: CLRN - news), a leading provider of Internet protocol (IP) telephony solutions, today reported financial results for the second quarter ending June 30, 2000. Net revenues for the second quarter of 2000 were $28.3 million, representing an increase of 204% from $9.3 million in the second quarter of 1999, and an increase of 15% sequentially from $24.6 million in the first quarter of 2000.