Techs Release Earnings Into Momentum

Powerwave Technologies(PWAV Quote): The stock is rated a hold according to ValuEngine, and at Monday's closing price of $14.38, it's a whopping 54.2% undervalued according to my model, with fair value at $31.40. Shares traded as high as $14.55 on Monday in anticipation of a positive earnings report. The company is expected to report EPS of 15 cents. According to Thomson/First Call, Wall Street analysts have a median price target of $15 and a high price target of $16. Powerwave's weekly chart profile shows rising momentum, with the five-week MMA at $13.14. As long as weakness holds my quarterly pivot at $11.45, I show potential upside to my annual risky level at $26.51 this year.

Symantec(SYMC Quote): At Monday's close of $18.19, Symantec was 19.0% undervalued, with fair value at $22.46, by my model. The stock is rated a hold according to ValuEngine. It's expected to report EPS of 25 cents. According to Thomson/First Call, Wall Street analysts have a median price target of $25 and a high price target at $30. The weekly chart profile shows rising momentum, with the five-week MMA at $18.50. The 200-week simple moving average of $17.27 has held on recent weakness, with my annual pivot at $19.50 and a second annual pivot at $21.85. These levels should be tested later in the year.

Wednesday's Reports

Business Objects(BOBJ Quote): The stock is rated a hold according to ValuEngine, and at Monday's close of $41.67, was 28.1% overvalued according to my model, with fair value at $32.52. The company is expected to report EPS of 40 cents. According to Thomson/First Call, Wall Street analysts have a median price target of $40 and a high price target at $50. The weekly chart profile shows overbought momentum, with the five-week MMA at $40.45. My quarterly value level is $33.44 with my monthly risky level at $43.28.

Time Warner(TWX Quote): At Monday's close of $17.55, Time Warner was 23.5% undervalued, with fair value at $22.93, according to my model. The stock is rated a hold according to ValuEngine. The company is expected to report EPS of 22 cents. According to Thomson/First Call, Wall Street analysts have a median price target of $22 and a high price target of $25. The weekly chart profile shows declining momentum, with the five-week MMA at $17.51. My quarterly pivot is $16.97 with my quarterly risky level at $19.96.