BRLCQ.PK.

[Ramsburg]

Profile: Syntax-Brillian Corporation engages in the manufacture and marketing of high-definition televisions (HDTVs) in liquid crystal display (LCD) and liquid crystal on silicon (LCoS) formats, as well as other digital entertainment products.
Website: http://www.syntaxbrillian.com
Market Cap: 132.82M

Trading Idea:
This is technical trade, where we estimate to have about 10% risk and 40% profit potential, in case of failure BRLC will probably trigger our stop very fast.
BRLC is performing a BARR pattern (Bump And Run Reversal) and is now close to trigger up the «Run». BRLC just had a few nice sessions over increasing volume and touched its descending resistance yesterday, this is the risk factor on this trade, the potential is a target above $4.00 if it breakouts these levels ($2.80).

Trading Plan:
Taking the calculated risk of a fake breakout, we'll try something different for this entry plan:
We'll Buy BRLC only if it prints $2.82, if it doesn't prints $2.82 we just keep this plan in standby for further instructions.
If we buy BRLC at $2.82 we'll use a stop at $2.52 for this position (about 10% loss).

Regards,

[bw6458]

Looks like news is out

http://biz.yahoo.com/bw/060712/20060712005205.html?.v=1

http://biz.yahoo.com/bw/060712/20060712005081.html?.v=1

off to the races until August 15th... when they annouce earnings

[DannyOhad]

Ramsburg,

BRLC is up more than 11% in pre market.

What is the entry strategy according to that?

[Ramsburg]

Hi Danny,

Sorry for the late reply, I was out of the office and unable to reply about this.

Wow ! we bought BRLC with a stop buy order, and we got filled at $3.05... what an excelent surprise

My take is that BRLC has a chance of filling the gap, but will must likely fly above $4 very soon.

my best regards,

[la-onda]

BRLC: Brean Murray Starts @ Strong Buy; Sets Tgt @ $6; Analyst Notes
Wednesday, July 12, 2006 09:26 ET

Issuer: Syntax-Brillian Corporation (NasdaqNM: BRLC)
Analyst Firm:  Brean Murray
Ratings Action: INITIATE
Current Rating: Strong Buy
Target Price Action: INITIATE
Target Price: $6.00
Analyst Comments: The firm is forecasting that BRLC"s LCD business will soon be profitable, and when this occurs or its China opportunity is more apparent, they believe the Street could double the stock's valuation.

&

BRLC: Shares Up 16.4% On Positive Guidance For Q4
Wednesday, July 12, 2006 09:54 ET

Syntax-Brillian Corp. (BRLC) has raised its revenue guidance for Q4 and fiscal year 2006. BRLC expects to be at or above its prior Q4 revenue guidance of $50-$58 million; ABOVE the consensus estimate of $53 million. Additionally, BRLC believes that gross margins will be at or above the range of 10% to 12% that it previously forecasted. On this surprise, the analyst firm, Brean Murray, rated BRLC as a strong buy and stated that it is forecasting BRLC's LCD business to soon be profitable. BRLCs' shares are up 16.4% on positive guidance for Q4.

&

bellwetherreport.com: BWR: Releases Coverage for Syntax-Brillian Corp. and Up and Coming Clothing Manufacturer
Wednesday, July 12, 2006 10:22 ET

Jul 12, 2006 (M2 PRESSWIRE via COMTEX) -- Bellwether strives to bring true growth opportunities to investors before the markets are aware that a company's market even exists, thus allowing for optimal entry points and profitable exit points. Our focus is not necessarily on individual companies, due in part to the fact that if you look at the majority of true success stories, they typically have one thing in common, they are in a sector which as a whole is considered to be undervalued! Syntax-Brillian Corp. (NASDAQ:BRLC), is responding positively and is continuing to attract attention from investors. We have also identified a company engaged in international garment manufacturing for well-known middle to high-grade casual, outer, and sportswear brands. Ever-Glory has strategic business partners in countries including China, Europe and the U.S. The Company cooperates with well-respected garment retailer chains such as Itochu, Abercrombie & Fitch, Shinko, Debenhams, Next, OTTO, C&A, I.Y., etc. in handling high and middle grade casual-wear and sportswear.

Syntax-Brillian Corp. (NASDAQ:BRLC), a manufacturer and marketer of LCD and LCoS(TM) HDTVs and digital entertainment products, announced details of a sweeping marketing agreement with ESPN and ABC Sports that will feature the company's Olevia brand throughout ESPN media properties including television, radio, print, and online outlets.

The agreement will run from September 2006 through March 2007 and leverage the breadth of ESPN and ABC outlets, including TV networks ABC, ESPN, ESPN2, ESPN HD, ESPN2 HD, and ESPNews as well as ESPN Radio, ESPN.com, and ESPN the Magazine, to highlight the Olevia brand of LCD HDTVs. Additionally, Syntax-Brillian will create new Olevia advertisements, specially produced in high-definition, to be shown on ESPN HD.

Olevia will be presented alongside a broad range of sports programming including Major League Baseball, college basketball, and football, as well as ESPN's signature sports news and information program SportsCenter. The brand will enjoy broad exposure to the 122 million Americans watching, reading, surfing or listening to ESPN and ABC Sports media properties each week.

"Not only do ESPN and ABC Sports' broad audience reach and popular programming present Syntax-Brillian with a fantastic showcase for our award-winning Olevia brand," said Hope Frank, vice president, marketing for Syntax-Brillian, "but teaming up with such iconic and powerful brands enables us to introduce Olevia to an important market segment on a grand stage with flawless execution."

Olevia's advertising media schedule includes spots in high-profile programming across five television networks -- ABC, ESPN, ESPN HD, ESPN2, and ESPNews -- as well as an exclusive sponsorship position of ESPN and ESPN2's HD programming during the highly influential fourth-quarter holiday shopping period. This critical fall and winter selling period coincides with increased interest in HDTVs ideally suited for the ESPN sports fan.

Olevia will also be the Presenting Sponsor of the premier college basketball pay-per-view package in the country, ESPN Full Court, which offers more than 450 college basketball telecasts to cable, satellite, and online subscribers nationwide.

Additional details of the agreement include:

ESPN HD and ESPN2 HD: Olevia is the premier sponsor of ESPN's high-definition live-sports coverage of college basketball, NBA, NHRA, SportsCenter, and other studio shows, plus ESPN's HD programming partner from October 2006 through January 2007.

ESPN Radio: Olevia will be featured in a full schedule from September 2006 through March 2007 with heavy tie-in to ESPN.com promotion and high-profile, in-show sponsorships of ESPN Radio's flagships: Mike & Mike in the Morning and The Dan Patrick Show.

ESPN the Magazine: Olevia will be featured in three popular issues including the NFL Preview issue, NBA Preview issue, and "NEXT" -- the Super Bowl Preview issue.

Olevia will also be featured with the ESPN Golf Schools and point of sale programs at select retail locations.

"Olevia is working across the ESPN and ABC brands in the perfect manner," said Bryan L. Burns, ESPN's vice president, strategic business planning and development. "Our collaboration with Syntax-Brillian, which is dynamic, fast-growing, and has global reach, is designed for Olevia to take very thoughtful advantage of the wide selection of ways we can assist companies in reaching their goals. And with the centerpiece of the effort being Olevia HDTV, the wide range of high-definition programming covered by this agreement will look spectacular on an Olevia HDTV."

Following this announcement Syntax-Brillian Corp. (NASDAQ:BRLC) continued to trade well, shares are up today on higher than average volume.

[GOGO]

WHY YOU BOUGHT IT?
IT DID NOT PRINT 2.82.
"We'll Buy BRLC only if it prints $2.82, if it doesn't prints $2.82 we just keep this plan in standby for further instructions."
GOGO

[Ramsburg]

WHY YOU BOUGHT IT?
IT DID NOT PRINT 2.82.
"We'll Buy BRLC only if it prints $2.82, if it doesn't prints $2.82 we just keep this plan in standby for further instructions."
GOGO

Hi Cogo,

I'm sorry about any misunderstanding; probably the syntax of the trading plan was not the best from my side, and may have generated some confusion. The main idea was to buy it if it started to trade above the descending trend line, the operational way for the entry was a stop buy order triggered at $2.82 (or above), that was executed @ $3.05.

Once again, I'm sorry about any inconvenience

Regards,

[realcoolhead]

I think your words were clear since you said: "Taking the calculated risk of a fake breakout ...", which means you wanted to make sure this is a real breakout before entering.

Now, I am really in pain: I entered the buy-stop order at $2.82 before market. But after the morning news I decided not to chase and changed it to buy limit at $2.88 ... the rest is history. Ah!!!

Ramsburg, do you look at Bollinger Bands at all? The main reason I changed my mind was because I saw it was gonna gap up way beyond the then upper BB. How should one use BB?

Thanks.

Hi Cogo,

I'm sorry about any misunderstanding; probably the syntax of the trading plan was not the best from my side, and may have generated some confusion. The main idea was to buy it if it started to trade above the descending trend line, the operational way for the entry was a stop buy order triggered at $2.82 (or above), that was executed @ $3.05.

Once again, I'm sorry about any inconvenience

Regards,

[Dracull]

For me it was quite clear, the entry-point was if it traded  at or behind that point, the graphic was quite clear.

[tokyopua]

I also didnt get in on this one because of the intstructions, but more than anything I am interested in learning about the concept of bump and run, since clearly it worked well in this case!

Can you elaborate on this TA concept some more Ramsburg? 

[Ramsburg]

I also didnt get in on this one because of the intstructions, but more than anything I am interested in learning about the concept of bump and run, since clearly it worked well in this case!

Can you elaborate on this TA concept some more Ramsburg? 

Hi tokyopua,

The BARR pattern can be described almost as a usual descending support breakout... but it's not so linear... The best way to be familiarized with this pattern will probably to read the Bulkowski «bible» for chart patterns on the BARR chapter, I believe he was the one starting with the BARR concept, and to start tracking this patterns when they appear on sight.

I just draw you a small synthetic chart for you, and I copied the first page from Bulskowski about this pattern (I'm not sure I can do this ).

Regards,

[Ramsburg]

Once again, my apologies for any misunderstanding on yesterday's entry plan, next time we use an irregular entry strategy we'll try to leave a clear order instruction.

Update:
News:
Syntax-Brillian Ups 4Q Sales Outlook

Wow !... BRLC exceeded our expectation for the first day on this position... We were searching for a confirmed breakout and we got a Breakaway Gap ... this was to be a 100% technical trade and now we got great news about fundamentals ...
Not even a plunging Nasdaq session messed up with this move, and BRLC closed near the highs of the day, approaching the $4 barrier.

On yesterday's chart I had a small mistake on the ema-200, it was the sma-200 instead, and it's corrected now. BRLC closed above the ema-200 with strong volume, a breakout and a runaway gap... This is extremely bullish, taking also into consideration the improved fundamental guidance, but we'll not change our first idea about this trade which was technical: The target of the BARR pattern is $4.40, if it goes there we'll have another breakout, this time of a long term resistance line, but we'll ignore that and focus only on the short term move that motivated us in first place.

The Nasdaq had an extremely bearish session, and the general broad market outlook is now in a very danger situation, so even if I personally believe this will turn up into a great general buying opportunity, we'll play safe and tight up our stance on this position, trying to take advantage of this bullish news and demand.

Trading Plan:
Hold BRLC with a stop @ $3.20 and a Limit Sell order @ $4.30

Best regards,

[tokyopua]

Hi Ramsburg,

Thank you very much for the VERY detailed explanation, it far exceeded my expectation of an answer, applause to you for that!  I think I may buy that book now that I see how powerful it is and how detailed.

And for any of us that felt we missed the ride yesterday, it seems the market has decided to bring BRLC currently to within about 15 cents of the 3SOF buy price...

[Ramsburg]

Hi Ramsburg,

Thank you very much for the VERY detailed explanation, it far exceeded my expectation of an answer, applause to you for that! I think I may buy that book now that I see how powerful it is and how detailed.

And for any of us that felt we missed the ride yesterday, it seems the market has decided to bring BRLC currently to within about 15 cents of the 3SOF buy price...

No problem tokyopua It was not very detailed, just a small draw
Yes, you must buy the «bible», see it as an investment Its probably the best book about technical patterns around, Bulkowski also published another book a few years ago, and it's like a complement on the first one.

Unfortunately we got stopped on BRLC, this ugly move on the markets didn't helped at all, and probably our stance was too tight with that stop level, since BRLC recovered a lot near the closing bell... But we made the plan and we followed it, locking down a profit during a major market sell off. For those still holding BRLC I would suggest a stop a bit bellow today's low price and the same limit sell order.

Regards,

[Dracull]

Managed to hold it until now, looking great so far, @3.8 - closing half of my position and holding the other part to the 4$ attack!