Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Trade/Invest with Options Jerry a Point & Figure Chartist -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (582)	1/31/2001 11:45:43 PM
From: Susan G	Respond to of 5893

From a free newsletter... AVCI - Avici Systems, Inc. $35.50 +3.25 Avici is a developer of next-generation Internet backbone platforms that optimize and drive creation of all-optical networks. With banks likely to see renewed borrowing, given the lower interest rate environment, we think areas such as the beaten down optical arena could very well see a pick up in buying. Lower rates lead to more borrowing, which leads to a rebound in telecom and network spending. Not that AVCI has showed any signs of slowing business. The company beat Wall Street's 4Q estimates by three cents on January 18, losing 26 cents versus estimates of 29 cents. Revenues were up 102 percent sequentially. The company also has $254 million in cash. Looking at the chart, shares have started a nice slow ascent after testing support at the 50-dma ($28.84) three days ago. Today's break above the 10-dma ($32.71) puts shares in a great position to challenge resistance from 1/12 and 1/23 ($37.13), precisely the reason we are watch-listing AVCI. Volume is the main reason why this scenario will come to fruition. Over the past ten sessions, AVCI has averaged 3.5 million shares per day, some 75 percent above the normal 2.0 million-share count. To boot, stochastics have turned up and MACD has crossed the trigger line, albeit slightly. With the Fed coming in cutting rates by half a point, they are showing their commitment to pulling this ailing economy out of the abyss. A close above $37.13 would probably be good enough, but eclipsing the December 12 close of $42.38 would be a veritable lock for our play list. With AVCI's 7 million-share float, it may not take long to reach $42+ if the market takes today's news and runs with it. Chart = stockbottom.com