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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: xcr600 who wrote (35452)	12/10/2001 1:10:55 PM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69152

Hi x, Nice call on DVID. The volume is their for a small stock, but still not the level I like. I still am cautious as they are guiding for decrease revenue the next 2 Q's. I think most of the most may be based on a newsletter mention. ... DVID currently develops and markets DVD loaders for DVD video players and DVD-ROM drives for personal computers in the consumer electronics and computer peripherals markets. DVID has a market cap of $23m on sales of $129m. The company is profitable, posting net income of $2m on sales of $52m for the September quarter and is using price to gain market share and increase revenues (they are succeeding too!). To say this company is cheap would be an understatement. DVD players are one of the hottest items this X-mas and MANY DVD companies have been on a tear of late. Growth in this arena is becoming exponential as the major studios are heavily promoting DVD movies. Even video store chain Blockbuster has made the switch to DVD’s. DVID has a small float and is thinly traded so traders should trade accordingly. DVIV rallied above its 200 DMA of $3.01 Wednesday. The stock retraced some Thursday but bounced at the $3.05 level, ending the day down fractionally. On Friday DVID moved! higher by 8%, closing over $3.50 and setting the stage for an assault on $4. We are looking for DVID to breakout to the upside here in the very near term. DVID has a year of $6.22 and with some attention from the street should easily move to that price point. At a price of $6 per share DVID’s market cap will be a puny $42m. If volume appears on the scene of this breakout the move could be quite nice. This stock actually has a decent PE of 12 and a very nice growth rate in an industry that is currently on fire. Keep your eye on DVID. The stock is clearly breaking out here and should put in an explosive run once it breaks the $4 level. With DVD stocks like ESST having put in explosive runs lately DVID’s price/market cap leaves plenty of run for upward movement. DVID chart to consider: stockcharts.com[h,a]dhclyimy[pb15!b30!b50!b200!d20,2!f][vc60][iUb14!La12,26,9!Lh14,3!Lk14!Lg buysellshort.com