The Stock Market Round Table
 by: TradeKing1 | December 20th, 2007

High Earnings and Revenue Growth -  Robbins & Meyers Inc. (NYSE: RBN) supplies engineered equipment and systems for various applications in energy, industrial, chemical and pharmaceutical markets worldwide. The company operates in three segments: Fluid Management, Process Solutions and Romaco.  Robbins & Meyers Inc. has year-over-year quarterly earnings growth of 109.70% and quarterly revenue growth of 13.00%. 

The stock has pulled back from its recent 52-week high of $77.14 set on December 12th, to yesterday's closing price of $67.82.  The shares are currently trading at $67.32, over $2.00 below their 50 DMA of $69.56.  You can see on the chart below there have been four pullbacks in the last several months, and we are currently experiencing a fifth.  You could draw a straight line across the bottoms of these pullbacks to identify the bottom of this channel.  Each of these pullbacks was buyable, and would have resulted in multi-point gains in a matter of a days, with the largest being a $20.00 run in October. 

The stock was showing some strength today until the market started selling off.  I believe this may be a good point to take an initial position.  If the stock can continue to show relative strength and hold this support level, I believe we can expect to see it rally back over the $70.00 mark.  A good point for a stop would be just below today's low of $67.02.   

Still actively buying and/or on watch in this category:  MTW, ATRO, GHM and MTL.  I'm adding TTES from yesterday, but it has already had a pretty big run at this point.

Channeling or Trending With Options Support –   Qualcomm Inc. (NASDAQ: QCOM - Analyst Report) is having an active day today in the shares and in the December, 2007 $40.00 strike price calls.  The calls have traded nearly 5,000 contracts already this morning and are up 160.00%.  Keep in mind, these options expire tomorrow, and the stock is currently more than $1.00 per share out of the money.

Earlier this morning Qualcomm raised its EPS guidance to $0.52-0.53 for the first quarter of 2008, compared to $0.43 in the previous year's 1st quarter.  This estimate is based on the shipment of approximately 78 million Mobile Station Modem chips during the quarter, as compared to prior estimates of 74 to 78 million units.    

The stock is trading at $38.74 per share, well below all of its moving averages.  It is near the bottom of its trend range, and is showing nice strength today.  I believe this is a good entry point for a medium to longer term hold.

Still actively buying and/or on watch in this category:  ETFC, ORCL, BMY, XMSR.

Oversold Conditions – Bidz.com (NASDAQ: BIDZ) is trading just above its support level, after having fallen over 60% from its highs set in mid to late November of this year.  On Tuesday of this week, the company commented through an "outside spokesman" that the company has "no comment" on the share price drop.  Well I do, "It's being shorted!"  Last month Citron Research came out with a negative report on the company, attacking their balance sheet and their business operations.  Citron is known to sell short the stock of companies it issues reports on.

Bidz.com has year-over-year quarterly earnings growth of 257.40% and quarterly revenue growth of 48.00%, with a long-term growth rate of 47%.  I like the company's web site and auction format.  I think it is a "buy" right here for a bounce play, as well as a long term hold.  I believe this would be a good entry point for an initial buy, but I would also be prepared to scale into the position down into the lower $8.00 range.

Still actively buying and/or on watch in this category: NBIX, TUES, KIDS, ADPI, FRPT.       

Round Table Wrap Up - The markets are still acting cranky today.  I'm going light on all positions, and am going to just keep watch for breakouts or extreme sell-offs on the stocks I am following.  ETRD, which was stopped out two days ago, gave a nice dip this morning for a new entry point.  TTES ran pretty well yesterday, so I've taken profits.  ATRO is looking strong today in this overall week market.  I would like to see it breakout above $42.00.  I have taken a position here to prepare for that, but the safer trade would be to let it breakout first.  ORCL had great earnings yesterday and is up over 7%.  Hey, those $22.50 call options still aren't in the money, but they are closer.  FRPT is giving those naked short sellers a spanking, and I've really been enjoying watching that.  I'm going to continue to hold some shares, because I think that this company is way undervalued.  More contracts could be announced at any time.  I have just one question for those shorts, going into this weekend:  Are you feeling lucky;-)?  Trade well, -TradeKing1  

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