Back to the stocks in the new year with EGMI. Roth Capital suggests that this stock should be bought on weakness. BDM agrees!
Both the fundamentals and the technicals are pointing to a good buy at these levels.
Please see the chart below for a complete technical analysis on EGMI.
So, lets go through the technicals, and then we will move on the some fundamentals.
1) Earnings: Set for March 15/2010. Expected to be on the top end of expectations. As such, now is the time to get in ahead of these earnings.
2) The 30 Day MA, and the 200 Day MA are converging at the moment, the pps is on the verge of crossing both of these moving averages.
3&4) A rising wedge pattern is forming nicely on this security. We expect with this pattern to see it back in the $2 range within the next few weeks.
5) The Real Strength Indicator is in a positive position with momentum for increased movement to the up side.
6) As discussed in #2, the moving averages are converging nicely. This is good news for the pps movement to the upside.
7) The Stochastics are also in a positive position.
Ultimately, we have just discussed 7 reasons why this stock should be moving higher.
Now lets briefly discuss the fundamentals for EGMI
The EPS Ratio, the PE Ratio, and the company growth ratio are all very positive. The only down side in the fundamentals as we see it is the 5 year cashflow growth. The last positive that we see in this stock is that it's sector has a significant amount of investment capital flowing in to it at the moment.
Good Luck, and happy trading!
Disclosure: Long EGMI since January 7th/2010
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