Stocks Watch List - ALDA, ALDN, CADA
(June 28, 2004)
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A designer and maker of graphite golf shafts.
Started tumbling earlier this month when Callaway (ELY), a designer of golf
balls and golf clubs issued an earnings warning - presumably because they
missed the recent trend of big-head clubs and oversized golf balls. Fundamentally,
this should not have a significant effect on ALDA, but the stock started
tumbling anyway - probably because of the fact that ALDA was such a huge
momentum stock. Following is a weekly chart of ALDA:
The 40-week moving average and the weekly uptrend line
should provide good support. So should the 20 EMA of the relative strength
line. My guess is that ALDA is probably close to a good bottom here, as ELY
has actually stabilized over the last few days as well. Adventurous traders
can probably buy here and put a stop at $9.50 or so - just $0.19 below its most
recent intraday high.
Former momentum stock started tumbling once the
prices crossed below its 50 DMA on Friday, June 18th. Weekly
uptrend line shown on the following chart should provide good support. Again,
adventurous traders can probably buy here and place a stop at $17, which is
$0.15 below its recent intraday low.
Nice uptrend and strong fundamentals.
Unexpected weakness on Friday probably due to the temporary loss of momentum.
Uptrend still looks intact, however.
Again, adventurous traders can buy here and put a stop at
$16.50, which is just below both the 50-day moving average and its recent
intraday low at $16.55.