Cold Technology Creates Hot Stock

11/14/2003 12:00 am EST


Bryan Perry

Editor, Cash Machine, Premium Income, Quick Income Trader, Instant Income Trader

Bryan Perry, editor of ChangeWave Tactical Trader considers recent news "incredibly bullish." He notes, "The evidence shows that the economy is not only picking up speed, but that the upturn will be lasting. The table is now technically set for the market to breach Dow 10,000 and Nasdaq 2,000." Here's his latest recommendation.

"We are recommending going long shares of Superconductor Technologies (SCON NASDAQ). An extremely innovative approach enables wireless carriers to do more with less, improving signal strength and network capacity. Since its technologies use extreme temperatures of less than 300 degrees below zero, the components conduct electricity without the electrical resistance that usually creates noise and signal loss during wireless transmissions. SCON acquired its largest competitor in December 2002, giving it a near monopoly in this business. Using its products, wireless operators can optimize their existing cell sites and put off having to build new sites due to coverage holes or capacity issues. Customers see real, verifiable value such as fewer dropped calls, fewer blocked calls, and fewer dead spots. Customers include Verizon, Cingular, AT&T Wireless, Alltel, and US Cellular.

"From a technical standpoint, the stock is in the midst of a powerful uptrend that is being supported by a big increase in the daily volume figures. After breaking out of a five-month base at $3 in early September, the shares climbed to touch $5.70 before some mild profit taking set in. The one-year chart now shows the stock about to complete a nice double-bottom. Money flow is straight up, and momentum indicators now show the stock being oversold on a short-term basis. This is a very constructive pattern and makes this trade particularly timely. Our chart work suggests that the stock will shortly trade back up through the 52-week high of $5.70 and reach $9, which is our three-month price target, for a projected gain of 55%. Buy this red-hot stock here and strap in for what should be a terrific ride ahead."

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