3SOF

Ramsburg · April 24, 2006, 01:56:02 AM

Profile:
Input/Output, Inc. and its subsidiaries offer seismic products and services to the oil and natural gas industry worldwide. It provides seismic data acquisition equipment, survey design planning services, software products, and seismic data processing services. The company operates in four segments: Land Imaging Systems, Marine Imaging Systems, Data Management Solutions, and Seismic Imaging Solutions.
Website: http://www.i-o.com

Technical Analysis:

Short Term:
IO had a powerful breakout in March, followed by a breakaway gap, some consolidation and new breakout last Friday. Volume was always present and above average.

Short Term Chart:

Mid Term:
On this time frame we can see a strong technical outlook, the stock has an ascending support (near $7.5 right now), and here we can see the power of March's breakout.
The last relative high on IO was $11.22, an important level that we expect to be broken at any moment.

Mid Term Chart:

Long Term:
IO reached its peak during 1996, since then it performed a bearish behaviour on this time frame, making successive lower highs and lower lows. During 2005 it made what appears to be a first «higher low», a first signal of trend change. Volume increased significantly since 2005, another factor that corroborates the beginning of a new up trend on this time frame.

Long Term Chart:

Fundamentals:

IO Fundamentals seems to be improving, when looking to Earnings and Revenues Trend:

Earnings Trend:

Revenues Trend:

Trading Plan:
We are buying IO today at or near the open.

Best regards !

.

tokyopua · April 24, 2006, 02:22:47 AM

Hi Ramsburg,

Quick question about buying "at or near the open". What criteria are you looking at to determine whether the buy is at the open, or a bit later? Will there be an update we should wait for?

Ramsburg · April 24, 2006, 02:40:27 AM

Quote from: tokyopua on April 24, 2006, 02:22:47 AM
Hi Ramsburg,

Quick question about buying "at or near the open". What criteria are you looking at to determine whether the buy is at the open, or a bit later? Will there be an update we should wait for?

Hi tokyopua,

Since we have to plan each trade before any market action, this «at or near» the open statement give us just a little flexibility. The main reason is to avoid some spike price at the open as it happened before many times (and certainly will happen again).

There are no special criteria for this; we usually buy at the open or (if we think we'll make a better price) in the next 5 to 10 minutes (never after that). Off course, this works both ways, and many times we get higher prices than the opening price.

My best regards,

Ramsburg · April 25, 2006, 04:47:34 AM

IO had a soft session yesterday, probably with some profit taking after the recent breakout. Volume was low, and IO is still above $10.50 it's previous relative high.

Our plan for now will be just to Hold (we'll not be setting a stop price yet).

Best regards,

Ramsburg · April 28, 2006, 01:21:25 AM

The entry timing for this trade was really not good.
IO just had two heavy selling days, uncompressing the recent buying pressure with a reasonable correction. Today's low was $9.68, the same value where IO found support a few weeks ago, the stock generated some interesting volume near the lows of the session, and recovered slightly almost making it a hammer. This candle suggests a recovering for the next sessions.

We still expect a breakout, and a move above $11, but we have to place a stop level on this position, so the plan is:
Hold IO with a stop @ $9.50

Best regards,

yukiii · April 28, 2006, 06:40:27 PM

Are we holding through earnings.

Ramsburg · May 01, 2006, 04:05:42 AM

Quote from: yukiii on April 28, 2006, 06:40:27 PM
Are we holding through earnings.

Hello yukiii,

I'm not sure if we'll hold through earning yet, which in May/11, but we'll update our position before.
Input/Output Inc. Earnings Call scheduled for Thu, May 11

IO had a nice positive reaction on Friday, but volume was low. We'll keep the same trading plan for now:

Hold IO with a stop @ $9.50

Best regards,

Ramsburg · May 08, 2006, 01:30:30 AM

IO has recovered since the last update, but it's not performing as we expected. The $10.50 is is acting as a short term resistance, making this chart pattern not so good right now.

We'll keep the same plan for the moment, but we really need a quick breakout in order to keep this position on the 3SOF portfolio.

The trading plan:
Hold IO with a stop @ $9.50

Best regards,

Ramsburg · May 10, 2006, 12:32:23 AM

Interesting intraday activity on IO... specially the last hour of trading, with a slight volume increase.

We are upgrading our stop level and we decided to hold IO thru earnings.

The new plan:
Hold IO with a stop @ $9.95

Best regards,

jorgegr · May 10, 2006, 11:29:06 AM

Rams:

Isn't this a SHS formation

jorgegr

yukiii · May 10, 2006, 04:38:19 PM

Earnings are out minus .05 does not look good.
Out at $10 AH

Ramsburg · May 11, 2006, 01:45:14 AM

IO missed the earnings estimates, and will probably open bellow our stop level. This will change out technical overview on IO, and therefore we should drop this position out of 3SOF Portfolio.

Our plan:
Sell IO with a limit sell order @ $9.90 or stop @ $9.10

Best regards,

Maestro · May 11, 2006, 10:59:52 AM

Quote from: Ramsburg on May 11, 2006, 01:45:14 AM
IO missed the earnings estimates

I see IO is holding up reasonably well; there may be hope for it yet.

Amarens · May 11, 2006, 11:10:54 AM

What does that mean missing earnings estimates? B/c I see earnings report?

Thanks,
Amarens

Maestro · May 11, 2006, 11:16:35 AM

Quote from: Amarens on May 11, 2006, 11:10:54 AM
What does that mean missing earnings estimates?

Reported earnings are lower than estimated by analysts. Usually drives the price of a stock down.

News:

IO