3SOF

I missed getting in on this earlier on.  I bought a significant amount the other day just before the Oct 10 Analyst Day.  It was in a nice flagging pattern and after reviewing all the fundamentals and their prospects with ZUNE and wireless chips.  It moved up 20% or so in two days. There is a link to their webcast on their website if you want to hear it (well worth listening too). The pullback point looks to be in the mid $1.65 range and it came back to $1.68 a little earlier.  I think we are seeing some profit taking into the weeknd and Monday it may pick back up again.  Its getting tremendous volume and attention (which will of course lead to volatility).  It has Analyst attention which is unusual for a stock like this (they recevied a strong buy recommendation (which is why I started looking into it).    Mike

OXY has very nice free cash flow that has been moving up at a nice rate over the last 3 quarters.  Its also is operatiing in blue sky territory (when looking only out to 10 yr chart) So I see no resistance there as long as it holds above $89.80.  Oil may pull back some here and so may this stock (daily shows some resistance at it aprooaches $93 to $95 level).  Mike

Thanks that gives an added context to my comments.  I'll have to look at that more.  Also I see this stock is just under $8 so it could pull back.  If it does the pullback it could go as far as $7 to $7.25 (but at the moment I'm doubting that scenario given its relative strength).  I'm thinking it would pullback to some point above that.  I would like to enter but I wonder if I need to see how this reacts around $8.  Perhaps it will pullback to a secondary trend line (that needs to be etched out).  Actually the more I look at it -- it seems that it has pulled back previously and touched just at the top of a cup like formation that goes back to about March 04.  Any thoughts on an entry at this point?  (Say enter above $8 if it breaks above and pulls back to that level in a couple of days or alternatively at $7.50 if it runs into a little trouble here?).  Mike

I'm not sure that I'm replying correctly here (meant to try to reply to David's earlier post).

DIET showed up on several of my recent IBD Screens.  It shows up quite nicely with an EPS Rating of 76 and RS (Relative Strength) of 97.  IBD prefers EPS ratings of 80 or better but I find a lot of stocks that are getting ready to move up significantly seem to have an EPS Rating of 75 to 77 on IBD. 

The only thing that bothers me about this stock is the cash flow is negative and the free cash flow (cash flow above expenditures) is slightly positive and declined a bit from last quarter as I read it. Although after just looking at the Free Cash Flow from 31 Mar this stock has appeared to make a considerable turnaround to the psoitive side all things considered.  Overall the fundamentals are positive to a bit mixed; but it looks like one of those stocks that will catch the eye of increasing numbers of institutional investors given its apparent turnaround from previous quarters.

To me it looks like it has held th elonger trend line from Aug 12 if you look at the weekly. However, It did break its veryrecent trend line from Jan 3 (low was $17.77).  There is a recent secondary trend line from Nov 29 (low was $15.56) from Nov 29 that now intersects at approcx the 50 day.  At $19.71 VPHM sits now just slightly above that trend line and the 50 day moving average. I would say this has a good chance to hold here with perhaps an intraday touch of the 50 day.