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Dartline™ October 11, 2006 7:30 am

As a follow-up to yesterday morning's DARTLINE, the strength of the Nasdaq to successful test its 200-day moving average bodes well to hold support beyond 2290. At 2315 the major test of 2370 remains in striking distance. A move above 2370 will signal a major technical advance and establish a prime bull market with the S&P 500 reaching 1300, DJIA at 13,000 and Nasdaq at 2605 within six months. However, until 2370 is covered, remain defensive. 

 
best idea

Company name: Digital Insight Corporation (DGIN) 28.25 DGIN provides outsourced online banking systems for over 1800 financial institutions. Projected forward P/E to December 07 of 20 and with further improvement likely, DGIN is fundamentally cheap at current level. Deal inked with Metavente Corporation will benefit its high profit gift card unit. According to Stocksmirf, the gift card market was a $6.2 billion business in 2005 and should expand to $31 billion by 2010. Add DGIN to your midterm holdings.

Company name: Bally Total Fitness Holding Corporation (BFT) 2.22 [8:30 am] BFT operates fitness centers and markets nutritional products. Recent lending by group managed by JP Morgan Securities strengthened the balance sheet and removed the threat of default. Add into the mix the RealAge partnership to stimulate sales and management efforts to enhance shareholder value; the stage is set for stock appreciation. BFT remains a speculative situation, yet warrants considered, BUY in the 2-2.30 ranges for midterm move to 4.

Ticker
Last Trade
Direction
Entrance Point
Exit Point
DGIN
October 11, 2006 - 7:30 am
28.25

*


P/E Ratio: 37
Forward P/E Ratio: 22
Float Shares2: 27m
Company Guidance: *
Recommendation3: Piper Jaffray/CIBC World Markets
Support4: 27.75 - 28
Resistance5: 32.60
Under Accumulation6: YES
Under Distribution7: NO

 


 

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