CML

[AussieTrader]

Profile:

Compellent Technologies, Inc. is a provider of enterprise-class network storage solutions. The Company's Storage Center is a Storage Area Network (SAN), that is designed to significantly lower storage and infrastructure capital expenditures, reduce the skill level and number of personnel required to manage information and enable continuous data availability and storage virtualization. Storage Center is based on its Dynamic Block Architecture, which enables users to store, recover and manage large amounts of data. It developed its Storage Center software and hardware solution to initially target small to medium size enterprises (SMEs).

Market Cap: $436M
Sector: Technology - Computer Services
Website: www.compellent.com

Trade Idea : Fundamentals : Technicals:

CML is an IPO from Oct 2007 which has been losing money consistently since listing (in fact since inception in 2002). However it is currently growing revenues and margins strongly. It IPO'd around $24, bottomed at $8 in March and since then has been steadily climbing upwards in a channel encountering and failing at $13 to $14 resistance several times. Last week the stock broke out from a bull flag pattern following management guidance that Q3 would mark their first ever profitable qtr as well as increased top line growth guidance (quarterly results link attached).

http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080805006321&newsLang=en

I think we may have here a fundamental shift in the company performance combining top and bottom line profitability for the first time ever. management must be supremely confident to deliver on this being so bullish in their guiding. I think this presents a great opportunity to take a position in CML prior to the stock price reacting significantly to profitability .

On the attached chart you can see the trading channel, and the $14 area of resistance. My plan is to watch the CML price action today looking for the $14 zone to hold and for the chart to set up a continuation pattern above $14. If this shapes up we can then decide to enter on the break of the consolidation or within it depending on how it progresses.

For now CML is on close watch for either a standby trade plan or entry to be updated in the next session or so.

Trade Plan:

On Watch

[la-onda]

Is there any more detailed update from the analyst report available??

CML: ThinkPanmure Starts @ Accumulate; Sets Tgt @ $15; Analyst Notes
Tuesday , August 19, 2008 09:09ET

Issuer: Compellent Technologies Inc (NYSE: CML)
Analyst Firm:  ThinkPanmure
Ratings Action: INITIATE
Current Rating: Accumulate
Target Price Action: INITIATE
Target Price: $15.00
Analyst Comments: The firm believes CML is in a strong competitive position given its compelling mid-range storage solution and pure indirect sales model.

[la-onda]

just a chart update :