December 19, 2008 at 1:55 PM
Posted by Thomas Catino
CyberSource Corp. (CYBS) shares have climbed significantly the past few weeks, in fact doubling from their late November lows of $6.11. The run has been buoyed by a variety of factors – a depressed valuation after the company reiterated 2008 full year earnings of $.63 to $.64 a share that sparked a wave of buyers, a stock buyback of $15 million that represents a significant portion of the $73.16 million cash and sent a bullish signal to the mark as a vote of confidence through the collective wallet of the board, followed by a broker reiteration by Needham & Co. analyst Jon Maietta who backed his rating and confirmed a good fourth quarter. The problem is that on a valuation basis, the stock has risen from trading at a PE ratio in the single digits to upwards of 20 and having encountered some technical resistance in the $12.50-$13.00 area, unable to break through and backing off from that level at yesterday’s intra-day high, a pullback on some profit taking seems to be in order.
Technical Market Forecast:The DJIA Will Hit between 10,027 - 11,169 by December 31, 2008!
My daily DJIA chart is as of Friday December 19, 2008. It provides a short-term Bullish forecast, and balances the majority gloomy Bearish view.
The chart with my notes and marks indicate a DJIA Ascending Triangle (short-term forecast to DJIA: 10,027.62 - Fibonacci retracement: .312); and a Reverse Head and Shoulders (Intermediate forecast to DJIA: 11,169.41 - Fibonacci retracement: .618). This work is confirmed by the other major market indices: NASDAQ, SP 500, and QQQQ.
The chart is available Free as an Image (.jpg) file upon request to Chartist at:stjamesm@hotmail.com.
Happy Holidays!
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