Aug 27, 2010 10:04 AM PDT
Endologix (ELGX) is on a roll; up. I like this stock because it seems to have found a safe price-point at $5.45. The evidence of that is that is can weather the bad news of a lawsuit and still hold its ground at that price, and even add some loose change on a day with no news. It has been moving up for months; not climbing, but crawling, but still, its going in the right direction. The ELGX Powerlink XL and IntuiTrak Express Delivery System seemed to have curried favor in the medical industry and top-line revenues should follow (and boost the stock past the $6 level and set a more permanent threshold at that amount). The potential here is in growing market share pushing revenues. ELGX already holds 8-9% of the market.
ELGX PSTA
Monterey Gourmet Foods (PSTA) had huge volume gains today, over 1.5 million shares on news the company is being bought out for $2.70 a share by Pulmuone U.S.A., Inc. is a U.S. subsidiary of Pulmuone Holdings Co., Ltd. Of South Korea. The money is already made here. The interest however is in the business of fresh gourmet refrigerated food products that PSTA prospered in. Check the chart for the PSTA growth during the beginning of the recovery. I consider PSTA to be a tip that will lead to some sector analysis and the discovery of a few other food product companies that are on the rise.
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Dot Hill Systems (HILL) seems to favor wholesale and retail and anything in between to push its top-line revenues and I like that; make it, sell it. News today that it launched a new, multi-tiered, formalized channel partner program simply validates the aggressive management at HILL. At $2.25, the stock might be topping its growth over the last year, but as takes on more and more partners its top-line will expand. HILL management says they will loose a few pennies in Q3, but I believe the next quarter will turn to the 'plus' side and it will head towards $3. The $0.75 spread can only be made by getting it ahead of a negative-reversal. HILL provides data storage management and the growth of that sector will also push it to $3.
HILL LAVA
There was a nice volume surge today on Magma Design Automation (LAVA) on news it strengthened its primary product performance and will attract more customers in the doing so. At $2.48, Magma is one of those stocks that seems undervalued; and is. Analysts have begun to notice LAVA. That coupled with a strong bottom-line and LAVAs Blast, Quartz and Talus family of products, apparently loved by the semiconductor business, is a green flag for investors in the chip business. LAVA revenues are poised to grow and continue its ascent.
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