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Dartline™ October 10, 2006 7:30 am

The tech-heavy Nasdaq will point interim direction of stock market with 2370 as the next target. On the downside support should be fixed at 2172. Put your dart away and the money dry if breakdown occurs below 2172.  Within this range trading opportunities should be confined to special situation and defensive picks. Conflicting economic signals warrant vigilance. Monday's direction was not conducive when bond market closed in observance of Columbus Day. Goggle's deal to acquire YouTube for $1.65 billion in paper kicks off the next dot-com bubble.

 
best idea

Company name: Computer Programs & Systems Inc. (CPSI) 31.35. CPSI designs, markets and supports information systems for hospitals in US. With 600 hospitals in 46 states, CPSI has a strong customer base to insure further growth at  15% per annum rate.  At technical support with a first leg move to 35 and midterm run to 40. Limited downside risk.

Company name: Spherix Inc. (SPEX) 1.55 [10:25am]  In the healthcare sector with a potential crown jewel  known as Naturlose, currently in Phase III clinical trail as a treatment for type 2 diabetes. The European Union had already approved the company's low calorie sweeter as a "novel food ingredient." The problem to date is finding a broad market for the product. The current Phase III program will improve the commercial worth of Naturlose, especially with 18.9 million people in US and 180 million people worldwide have the disease. Management has controlled costs to conserve cash and seeking a partner to launch Naturlose. Clearly a speculation, SPEX has an excellent probability to work higher. BUY at current levels for a move to 3-3.25 in the near term.

Ticker
Last Trade
Direction
Entrance Point
Exit Point
CPSI
October 10, 2006 - 7:30 am
31.35

40.00


P/E Ratio: 21
Forward P/E Ratio: 17
Float Shares2: 8.79m
Company Guidance: *
Recommendation3: Prudential and JMP Securities to Market Perform
Support4: 30.75
Resistance5: 42.70
Under Accumulation6: YES
Under Distribution7: NO

 


 

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