3SOF

OMNI

Omni has been on a tear in 2006 almost quadrupling in share price.  It has posted increasing revenues and earnings.  Recently, it has completed an acquisition to add to the top and bottom line.  On June 2, it came out and said its 2nd quarter sales would beat the street.  Then on June 28, it gave another release that said that earnings would be higher than previously stated.  Given all these bullish indicators, I expect it to continue going up, at least until the next earnings report where investors may sell the news.

NENG (NETWORK ENGINES)

Profile:  Network Engines, Inc. engages in the development and manufacture of server appliance solutions that deliver data storage and network security applications on server appliances. It provides server appliance solutions and services for the data storage and network security markets.

NENG has been on a bull run since the beginning of 2006.  It has a steady and beautiful chart and has recently retraced from it's high of 3.25 in March.  Volume has been rather low lately, but the stock has maintained above it's 50 sma.  Though the company is losing money, it has generated several new strategic partnerships and distributors of its server products in recent months.  Earnings is Thursday Apr 27, so that will probably provide direction for the stock in the month to come.

elite,

Looking at your charts, does the volume and price corellation bother you?  Seems to me that last week had record volume that blew away even past highest volume days.  But the price hardly budged.  I would expect pps to appreciate tremendously based on that kind of volume.

I just noticed the updated short numbers on yahoo.  As of Feb 10 2006, 3.99M shares short up from 3.46M in January.  So additional 500,000 shares short in one month.  Short percentage 48% of float!

How much longer can this short pressure last?

LNUX  VA Software Corporation

LNUX has been up big recently after reporting a profitable quarter on Feb 21.  What is bothersome is that the stock was up big on heavy volume the days leading up to earnings.  However, since it peaked at 4.27, it has pulled back to the 38% retracement level.  The stock looks to be consolidating recently on lower volume, but I expect it to breakout again and go to even higher levels.

Profile:
VA Software Corporation, through its subsidiaries, engages in the development, marketing, and support of a software application, known as SourceForge Enterprise Edition in the United States. SourceForge is a proprietary, Web-based software application designed for corporate and public-sector information technology (IT) professionals and software engineering organizations, which combines software development and collaboration tools to track, measure, and report on software project activity.

Cramer reaffirmed his position on REDF last nite.  Said to check out TheStreet.com and Jim Altucher's article.  But it looks to be a subscription only article.  Anyone have access who can give us the skinny on the bull case?

Anyways, I am looking for a buy the hype, sell the earnings scenario.

NEXM - NexMed

This stock has reached a double bottom and seems to be bouncing back.  It has been in a descending trend for about 4 months now.  And now it is making a comeback.  Recently announced on Jan 12 that it just named a new CEO.  I guess ppl are looking for a turnaround.  I expect it to continue to break out of a descending wedge.  VOlume has really picked up over the last few days to give it some momentum.

Profile. - NexMed, Inc., a pharmaceutical and medical technology company, engages in the design, development, manufacture, and commercialization of therapeutic products based on proprietary delivery systems

This could be good news for DIET.  MED is also in the same industry, though half the mkt cap.  They also offer meals for online order and various diet plans.

Medifast sees higher FY05, FY06 revenue

Jan 17 (Reuters) - Medifast Inc. (MED.A: Quote, Profile, Research) on Tuesday said it expects a 47 percent rise in 2005 revenue at $40 million, helped by an increase in direct sales.

For 2005, two analysts on average expected the company to earn revenue of $37.7 million, according to Reuters Estimates.

The maker of consumable health and diet products said it expects 2006 profit of 22 cents to 24 cents per share on revenue of $48 million to $50 million.

For 2006, two analysts on average expect the company to earn 25 cents per share, excluding special items on revenue of $45.3 million, according to Reuters Estimates.


Profile:
Medifast, Inc., through its wholly owned subsidiaries, engages in the production, distribution, and sale of weight and disease management products, and other consumable health and diet products. The company's product lines include weight and disease management, meal replacement, and sports nutrition products. It offers various weight and disease management products under the Medifast brand and for select private label customers.

1)  SMTX  (SMTC CORP)

2)  A former 3sof pick.  Company swung to a profit from a loss last quarter.  Started a restructuring, refinancing, and a new focus on operations in 2004.  Management is focused on improving the balance sheet, paying down debt, and improving growth and profitability.  

Reports earnings on November 14.  If results are as management predicted, then they should post another profitable quarter.  Hopefully SANM's earnings preview things to come for SMTX's upcoming quarter.

Technically, stock has held steady above 2.10 after the last breakout.  New to TA, but seems to have broken out of a descending wedge and has slowly trended higher in anticipation of earnings.  Stock could double from current levels if earnings are good.

Profile:  SMTC Corporation provides electronics manufacturing services to original equipment manufacturers (OEMs) primarily in North America, Europe, Asia, and Mexico. Its services comprise product development, which include product design, prototyping, and qualification testing; product assembly and test services; and interconnect, which consists of design, development, and manufacture of interconnect assemblies, such as optical and electrical cable and harness assemblies. The company also offers sheet metal fabrication services used in the assembly of a range of electronic enclosures. It offers its services to OEMs in the industrial, enterprise computing and networking, and communications sectors.

Keep a watch on SMTX.  Traded up 18% yesterday on 2.5x average 10 day volume.  Top 5 Nasdaq percentage gainer.  As high as 2.88 in AH making total 30% gain yesterday.  Could gap up this morning.  However, all this on no news.     Could be time to test metro's gap up strategy at the open.  Trade as you see fit.

actrader