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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: gcrispin who wrote (38609)	7/25/2010 1:33:01 PM
From: Paul Lee	Read Replies (1) \| Respond to of 78990

CVU, the little engine is still chugging along Can't tell you the guy understands this company at all, but his chart is doing some talking like I said, first come volume, then comes price- could be an interesting week seekingalpha.com. Small Defense Contractor With Interesting Potential Today's addition to the Barchart Van Meerten New High portfolio is a small defense contractor. We are looking at this as a short term price momentum play not a long term investment. CPI Aerostructures, Inc. (CVU) is comprised of two distinct entities: CPI Aerostructures, Inc. and Kolar, Inc. CPI Aerostructures, Inc. engages in the contract production of structural aircraft parts for the United States Air Force and other branches of the U.S. armed forces as a prime contractor or subcontractor for other defense prime contractors primarily in the United States. The company, as a prime contractor, offers skin panels, leading edges, flight control surfaces, engine components, wing tips, cowl doors, nacelle assemblies, and inlet assemblies for military aircraft. As a subcontractor, it offers various pods, and modular and structural assemblies for military aircraft; and various kits and assemblies for the S-92 civilian helicopter, as well as operates as a subcontractor to prime contractors in the production of commercial aircraft parts. The company was formerly known as Consortium of Precision Industries, Inc. and changed its name to CPI Aerostructures. The stock came up on my daily Barchart screening for stocks hitting the most frequent new highs. This one hit 15 new highs in the last 20 trading sessions including 5 in the last 5. Last month's price appreciation of 17.58% has given the stock a 96% Barchart technical buy and a Trend Spotter buy. The stock trades around 10.79 with a 50 day moving average of 9.43. Wall Street hasn't discovered this stock yet and only 1 analyst follows it but he thinks the stock will have a 25% 5 year annual compounded EPS growth rate. Investors also haven't found it either. On Motley Fool the 2 investors that have given opinions think it will beat the market. I'm adding CPI Aerostructures (CVU) to the Barchart Van Meerten New High portfolio but will keep a very close eye on it. Points to consider: 15 new highs in the last 20 sessions 17.28% price appreciation last month 96% Barchart technical buy signal Trend Spotter buy signal Wall Street analyst prediction of a 25% EPS growth Extremely small but positive investor sentiment Get in early but be prepared to get out early too Disclosure: No positions in CVU at the time of publication. About the author: Jim Van Meerten Jim Van Meerten is a full time investor and writes on financial subjects here and on Barchart Portfolio Blogs. He earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended post-baccalaureate and graduate