I am buying varian monday morning. It has a IBD EPS rating of 97 and RS of 96. It just broke out of a 13 week cup with handle pattern on very high volume. It is in a leading group. On the down side SMR rating is a C, and has 26% debt, and low margins. But it seems to be the best bet for now on my radar screen. If anyone has any thoughts on varian, I'd like to hear it. srv.
Wookkim: I, too, have been studying Varian this weekend. Much of it is tempting: great EPS/RS rankings, hot industry, classic breakout from cup/handle. Although it has debt, it's cash/debt ratio is 1.125. On the down side: As you said, poor margins. Also, Fool Ratio is 0.88--the stock is a little pricey for it's TTM earnings. Flow ratio is 1.45--not bad. But interestingly, the stock gained 12% Friday. Although it was on great volume, stocks will often pull back a bit after a big gain--even as they head higher. It's closing price (52 13/16) is still within 5% of it's pivot--so yes, it's very tempting. Good luck.Eaps
LProuty,Thanks for the reply. I dont understand some of the figures you cited, I will have to do a little studying. I was away on vacation and just returned today. I have been following varians performance last week however, and it has not been too bad.I didnt appreciate the 4 dollar drop on friday, but it was on decreased volume from the day before so it could have been worse. Can you direct me to where I can read about fool ratios and flow ratios?wk.
Wookkim: The Fool Ratio measures potential growth of a stock's price based on analysts' projections for earnings growth. I think I remember that it's not accurate for large cap companies--better for small to mids. A lower number is preferable. You can read about it in the Fools "Investment Guide". The flow ratio is a measure of how well a co. manages it's inventories and accts. receivables. Also a low # preferable here. I believe I learned about it in the Fools' "Rule Makers-Rule Breakers". I jumped into Varian, too. Good luck.LProuty
lprouty:Thanks for the info. I did some foolish studying over the weekend and understand those ratios better. Varian was up today on low volume. I'll take it. You might take a look at PLXT. It went past its pivot today on strong volume. IBD rating 98 93 AAAA. good luck.wk
Hi wookkim,For PLXT, the good entry point is between $40-41. You can place two limit orders: one at $40 and one at $41. Good luck!PLXT will most likely run up to $50 from here, but will retreat when it hits the resistance. How much will it give back once reaches $50? I guess it will return to $45. Only then, PLXT will begin its journey to $100.Humbly Fool On!YAW
Hi YAW,What you say is very interesting. Can you explain? Tanks w.k.
Hi w.k.I got the entry price range from the chart. Today, PLXT did indeed fall between $40-41. Did you get it? This is just a simple shake-out. Most likely, it will climb up next week. Good luck!I have my own board. Why don't you just join us for some fun. The board is here: http://boards.fool.com/Messages.asp?id=1380139000260001&sort=idHumbly Fool On!YAW
Boy, what a ride today. A 13+% drop in a day after trouncing estimates by 4 cents!! What a demanding market. And 5 times normal vol. today. Geez! After watching Foundry get pummelled after beating it's estimates I guess it's no surprise. Varian's net margin has climbed to 6.4%--and it get punished.
Vari's base is between $40-45. Today, it recoved nicely from the drop, but the trend is not broken yet. $45 will be the short-term base. If this line does not even hold, we will see $40.Humbly Fool On!YAW
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