BREAKING OUT – 01/24/2013

LL (Lumbar Liquidators), OSTK (Overstok.com – bought my rug from here), NFLX (Dont tell that you dont know this name) and FFIV (aha! its a buy again).

Latest update on breakouts:

NFLX (Dont tell that you dont know this name) – The shorts are been squeezed to death leading to massive jump in price. Again if market corrects, this stock might come down to $130 to $135, an entry point for aggressive speculators.

Netflix added 2 million subscribers to reach 27.2 million at the end of the year. The company’s overall EPS of $0.13 was well ahead of the consensus estimate calling for a $0.07 loss and the beat was driven across all three units: domestic streaming, DVD rental (subscriber declines decelerated), and the international business posting a loss of $105 million (slight beat). Longer Term I think we are looking at up to 40 million subscribers.

FFIV (aha! its a buy again) – I entered today again at $104 with trailing stop of 9%. I have been in love with this company from it’s hay days or my hay days. The reason is simple – right place right time. Ever heard of BIG DATA – data from non-sense blogs like the one one on which you are, cursing on twitters and youtube. All these data need to go through networks and someone needs to manage those networks be it internet, cable or phones. This is were Force Five comes into play. It has excellent product pipeline to manage and monitor networks be it private or public. Moreover the company ensures that it keeps ramping up its pipeline. Lastly, the management is excellent and thus the company has been taking market share from CISCO.

F5 Networks reported revenues of $365.5 million in the reported quarter, up 13.4% from $322.4 million in the year-ago period. Reported net income was $69.5 million or 88 cents per share compared with $66.5 million or 83 cents a year ago.

Other interesting breakouts –

OSTK (Overstok.com – bought my rug from here), TPX (Temper pedic Matress maker – pre earnings bulls are at work), IRBT (iRobot – Have you seen Roomba vaccum cleaners at Costco that drive your dogs insane?), ERJ, AVT and MEOH.

TPX – With Sealy in its back pocket it has both Spring and Memory foam on offer but my favorite still is SCSS (earnings after close today).

OSTK, ERJ and AVT are technically the cleanest breakouts. I will write about them later tonight.

Breakout Watchlist:

LL (darn it!! – bluffed today morning), CLGX, CHUY, KORS, JOBS, GOOG and ISRG.

Now the market is overbought. So do you still buy any of the above. In last 5 years of churning stocks, I learned that stocks breaking out due to good earnings report (surprise!! surprise!!) or part of industry group leading the bulls tend to go sideways with correction of 1.5 times the market correction.

I will keep yo’ all posted with more breakouts. Have an excellent day!!!

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