This stock was caught up on my technical filter, and everytime I see this volume pattern I get very interested, because it usually leads to a big advance:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=11204;image)
So, what's the story with MPS?
On the 28th of July the company released its second quarter earnings, and it beat the street estimates by a penny: MPS Group tops Wall St. view by penny (http://www.marketwatch.com/news/newsfinder/pulseone.asp?dist=¶m=archive&siteid=mktw&guid=&dateid=38561.3221530671-839208061)
And guided higher for the 3rd quarter: "Looking ahead, the Jacksonville, Fla., provider of specialty staffing services forecast earnings of 12 to 14 cents a share on revenue of between $425 million and $435 million. Wall Street's current consensus estimate is for earnings of 12 cents a share in the September quarter. The stock closed Wednesday at $11.45, up 3.6%."
These were already great news. But then the 3rd quarter came and the company again surprised, and by a wide margin, on the upside: earnings per share actually came in at 17 cents per share.
This leaves the company with a forward earnings multiple of 22 and earnings growth of 78% year on year. That's severe undervaluation.
With this good habit of surprising analysts on the upside and this kind of earnings momentum coupled with an attractive valuation tells me higher and higher prices to come for MPS.
I'll buy MPS at today's open for the Fast Portfolio, probably to hold for the rest of December, 33.33% of capital as always.
Auto Parts sector is becoming bullish.
ARM in particuar is going up fast. I bought it this morning after open at $14.00.
Here is the chart:
Good pick for MPS. But I did not buy at open.
Instead bought on small pull back at $13.82.
I have noticed that previous big run ups always forllowed by small pull back before its continue advancing. That 2% additional gain.
David - I like the story, particulary since I almost bottom ticked it at 13.75, 2000 shares. I like the recruiting business these guys are in and had a friend go to work there - he loves it. The story is real strong so thank-you for a nice find which could be a long-term hold. I see $18 as an easy target for this stock.
Covered my VDSI as it got over $10 this am; probably too early, but I made a few cents, oh well. Bought more TRAD yesterday at 12.97, bought more RDCM at 3.26;
My real winner has been ELN, up from low 10s to 13 ina few days - This is going higher.
Good luck; got a great pick for the next contest!! NENG - which I own a lot off!
Defenderyou
Thanks for your comments :) Unfortunately today I have no time to comment them and comment MPS. I'll just continue holding some more time, volume kept up and the trend is bullish. The fundamental story is also attractive.
I'll start from the Fast Portfolio for tomorrow's updates.
The only problem with MPS stock was that it was a bit overextended, so maybe a pullback on profit taking was due.
It happened yesterday and quickly bargain hunters took the change of loading some shares. MPS's volume pattern and fundamentals tell me this is a stock to own for the entire month of December, and that's what I'll do here on the 3 SOF Fast Portfolio.
Dave you may be right, but I dont like the volatility of this stock so I dumped near its high today at 14.20 with a 27 cent profit on 2k shares - not much but +++.
I will watch this one
Defenderyou
Quote from: defenderyou on December 13, 2005, 04:26:09 PM
Dave you may be right, but I dont like the volatility of this stock so I dumped near its high today at 14.20 with a 27 cent profit on 2k shares - not much but +++.
I will watch this one
Defenderyou
Defenderyou, i thought the high of the day was 14.11.... i know, MPS is so volatile it even went down @ 12.99
That's right, MPS is so volatile but i looked at the chart today & i noticed it left a very bullish candlestick and it's called "BULLISH BELT HOLD PATTERN" .....David, I think you're decision is correct to hold this good stock 'till december... i wish i could add more to my position ;).... well, we will see...Your Motto: Market knows better ;)
I believe Bulls will push MPS much, much higher ;)
You're right Terlisa, that's a very bullish candlestick :)
I don't know who does it, or why they do it, but the stock opens sharply lower to then comeback all day. Probably some people think it rose too much over the short term and sell it at the open.
Anyway, with this volume and candlesticks patterns I would say this stock has a 90% chance of going higher. If there are no unpleasant news it's a technical sure thing ! (never heard of a technical sure thing? Neither did I, I just invented it ;D)
I'll continue with my plan of holding MPS until the end of December.
MPS did it again, opened sharply lower and the came all the way back to unchanged. And today, I just saw, the same thing, lower open and now it is positive.
Something's got give, and I think this stock will breakout to new highs shortly. I'll continue holding without reserves until the end of December.
So much Thrill into this stock ;D ... I'm expecting a new 52week high tomorrow :D
I hope you're right Terlisa, volume on this is exploding, price will probably follow and break to new highs.
I'll hold MPS until the end of the December Edition of the Fast Portfolio.
I want to be careful now in selecting new stocks, I don't want to have a losing month ...
Quote from: David Randolph on December 16, 2005, 09:25:27 AM
I hope you're right Terlisa, volume on this is exploding, price will probably follow and break to new highs.
I'll hold MPS until the end of the December Edition of the Fast Portfolio.
I want to be careful now in selecting new stocks, I don't want to have a losing month ...
Now, i'm right David ;) MPS refresh the 52week high ;D
Looks like only you & I riding this baby ;)...
Since our leader liked it enogh to call it safe, I even added a little more when it bounced of the uptrend (http://mdteague.com/JumpnFLame)
The more I look at the chart on this, the more I like it. Maybe next week will give the big bullish move upward :D
Quote from: redchipper1 on December 17, 2005, 04:48:16 PM
The more I look at the chart on this, the more I like it. Maybe next week will give the big bullish move upward :D
I agree redchipper1, MPS's technical pattern is awesome. The fundamental background of this company let's me hold it until the end of December and the technical picture promises a lot, I hope it delivers.
I'll continue holding MPS without reserves.
We had this news yesterday on MPS:
Special Counsel Selected as Sole Vendor for Legal Staffing Services by Housing Authority of Baltimore City (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=994417&guid=%7BCA1B5598%2D91A9%2D4EF3%2DA47D%2DFB80441EA03F%7D&symb=)
Not very significant.
I still feel the stock is way undervalued at this point. Volume is high but the stock seems to have trouble advancing. There are many buyers and sellers. The previous trend is bullish and looking to a longer term chart, you can see the stock is at a 5 year high, which is bullish.
Although I would like to hold MPS until the end of December, I have to set some downside protection, because I may need the capital to save the 3 SOF Fast Portfolio December Edition starting tomorrow.
So I'll, continue holding MPS for as long as it is set to close above the ascending trendline on the chart below, which for today stands at $13.56.
Is MPS still Safe & Fast? ;)
David,
I know you've probably sold but I have got a TA question about the chart. Do you think it is more appropriate to use L2 instead of L1 - in that case the uptrend is still valid ?
Looks like a shakeout happened in MPS...David, i hope ur not one of them... uf course ur trading plan always there to follow...but for me i put a stop loss @ $13.00 & i'm still IN holding 'till the end of december like you said... CHIAO BABY!!!