Prime Stock Advisory Letter for January 29th, 1999
Today's Comments: The overall market moved moderately higher yesterday. The S&P 500 'SPX' has clearly broken through its recent downward trendline that had been providing resistance. A solid move upwards today by the Dow Jones Industrial Average 'INDU' would confirm the move to higher levels by the overall market. Yesterday's rally was broad based and affected the majority of the indices I track, with the exception of the commodity based indices. The Internet issues continue to be the hot spot of the market. The recent acquisitions among these issues has ignited a new round of speculative trading. I am looking for those issues with strong securities (high stock price) continue to acquire other companies that will compliment their existing businesses and improve their profitability. Currently the overall technical picture remains positive. The Bottom Line: The overall market should move higher.
Company: Greg Manning Auctions
Symbol: 'GMAI' Closing
Price: $10.69/share.
YH: $21.75 YL: $1.19
EPS: $0.06 P/E: 211
Forecasted EPS: $0.20
Dividend: N/A Yield:
N/A Ex Dividend: N/A
Price Targets: $16.25 & then $24.50
Downside Stop: $10.125
Options Recommendation: None Available.
Company Description: This company is a major auction company.
Recent News: 1/28 Greg Manning 'GMAI' reports record
second quarter sales.
1/28 Greg Manning 'GMAI' 2nd qtr net income $0.04 vs. loss of
$0.14
1/20 Greg Manning 'GMAI' forms alliance with marketing firm.
Our Analysis: The shares of 'GMAI' moved sharply higher on heavier
than normal trading volume. They should continue to move higher and
test $16.25/share, a point of upside resistance established in early
November of last year. If they close above that level then they will
have completed a cup pattern with a measured move to $24.50/share.
Yesterday, 'GMAI' reported its 2nd qtr. sales and earnings.
The company reported a 400% increase in sales and $0.04/share in net income.
The company now qualifies for the NASDAQ National Market System 'NMS',
a move to the 'NMS' from the NASDAQ Small Cap would be a very positive
development for the trading of the shares of 'GMAI' as it would allow major
institutions to purchase the shares who are now restricted from doing so
because of the company's Small Cap listing. I am expecting this move
to occur in the near future.
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