Another small-cap that popped up on my scans on Tuesday is Tangoe (TNGO), which makes software that helps business customers manage their telecom systems and other data. I was in this stock a few months ago, exiting with small gains. This has historically been a difficult stock to hold, as it tends toward large intraweek price swings.
While many stocks can be bought successfully after they clear previous price highs, Tangoe's history shows it should be entered at a lower price point. As it is currently holding above short- and medium-term moving averages, I consider this stock to be in buy range. Of course, if the young market uptrend fizzles in the next few sessions, that could pull the stock quickly out of range. As always, investors need to set stops at a comfortable level, using either a percentage decline or a moving-average to keep losses small.
Though I never buy a stock based solely on fundamentals, one factor I screen for is strong estimates. Analysts see Tangoe's earnings growing by 50% this year, to $0.42 a share. Next year, they are seen rising by another 33%, to $0.56 a share.
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