My Keys to Trading
Weekly Chart Profile: A stock with a positive profile has a weekly close above its five-week modified moving average with a rising 12x3 weekly slow stochastic, which is a measure of momentum on a scale of zero to 100. A reading below 20 is oversold, while a reading above 80 is overbought.
Fair value: I calculate this for every stock. It's the price that a stock can trade at in a perfect world. This is not a price target; it is based upon the company's past data and its projections for the future, including its trailing 12-month EPS, the forward 12-month estimated EPS and the yield on the 30-year Treasury. How these data points are weighted depends on an historical analysis of the stock's price history, with some 17 other variables influencing the calculation on the basis of its sector and industry group. My model knows that tech stocks tend to trade at high P/E ratios.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider Asyst, Emcore, Immersion, Stellent, Actuate, Interwoven, Intellisync, Terayon, Westell, Entrust and WebMethods to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.