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.

Gold/Mining/Energy : Direct Focus Inc. (DFXI) -- Ignore unavailable to you. Want to Upgrade?

To: Gofer who wrote (747)	5/1/2002 4:59:23 PM
From: Gofer	Read Replies (1) \| Respond to of 768

Direct Focus Pumps Iron forbes.com Ben Berentson, 05.01.02, 1:00 PM ET NEW YORK - Direct Focus is on a roll. The company, which makes exercise equipment including such brands as Bowflex, StairMaster, Nautilus and Schwinn, reported first-quarter earnings up 63% from the same period in 2001. Its stock is up 49% this year and now trades at around $45. But according to Dan Zanger, editor of online newsletter ChartPattern.com, this run is set to continue. "The volume has dried up after a big move on high volume a week ago," says Zanger. "Then on April 30, the stock moved up again on high volume and made a new high." He says that this resembles what is known as a Darvas box, named after technician Nicolas Darvas, author of How I Made $2,000,000 in the Stock Market. Essentially, a Darvis box refers to a stock that is in the midst of a several-months-long uptrend that suddenly dips on low volume--forming what looks like a little cup. According to the theory, the stock will then reassert the upward move on high volume. You can see a similar move on Direct Focus' (nasdaq: DFXI - news - people ) chart from March 28, when it reached $38, to April 19, when it jumped to a new high of $42.79. "The stock also closed near its high for the day," says Zanger. "This is a good sign. It has been making higher highs and lower lows, and I expect this to continue." He thinks it will reach $60 by the end of the month and recommends closing out at least half of your position there.