11/17/2009 Gameplan | Bulls on Wall Street

11/17/2009 Gameplan

Last night I gave two buy points, one on a pullback and the other on the breakout.  Today the breakout entry presented itself.  While volume is not bigger than the down vol, it is a pick up from recent positive volume. 
 
Entries are still available on slight pullback, via SPY or SSO (leveraged long ETF).  Stop should be placed under the breakout line, 108.50-109.50 depending on trade entry risk levels and position size
 
 
 
This to me presents a favorable risk/reward opprotunity to put some cash into play as we did yesterday
 
One major change in my portfolio will be to liquidate the rest of my $tmi and pour in the profits into $idi very similiar companies in the same niche.
$IDI – IDEATION ACQUISITION
 
SearchMedia is a leading nationwide multi-platform media company and one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. SearchMedia currently operates a network of over 1,500 high-impact billboards with over 500,000 square feet of surface display area and one of China’s largest networks of in-elevator advertisement panels consisting of over 175,000 frames in 57 cities throughout China. SearchMedia ranked first in market share of in-elevator advertising displays in 13 out of the 26 most affluent cities in China and ranked second in an additional nine of these cities, according to Nielsen Media Research. Additionally, SearchMedia operates a network of large-format light boxes in concourses of eight major subway lines in Shanghai. SearchMedia’s core outdoor billboard and in-elevator platforms are complemented by its subway advertising platform, which together enable it to provide multi-platform, “one-stop shop” services for its local, national and international advertising clients that numbered more than 780 cumulatively from its inception to July 31, 2009.
 
 
2009 Projected Net Income : $26m
2009 Projected EPS : Approximately $1.18 ($26m/22m O/S)
Competitor’s P/E : VISN trades at $9.22 with .39 avg EPS estimates = 22-23 P/E(dont have an exact my math sucks)
 
I like this in the 8.30s as a great r/r
 
 
I love this on a breakout/pullback play…  low volume orderly pullback close the breakout bar will give us a low risk opportunity.  Look at the multiple levels of support.
 
Price + M.A. support====super support
 
AS a core holding in my longterm/ira accounts I am scaling into $zstn
Low 6s is ideal.  A starter pos 1/2 in 6.30s should work. Then scale in.
 
here is the profile via yahoo finance
ZST Digital Networks, Inc. develops, manufactures, and supplies digital and optical network equipment to cable system operators in the People?s Republic of China. The company offers a range of cable television devices and related networking products, including Internet protocol television set-top boxes, which integrate Internet, multi-media, and communication technologies, and provide residential customers with high definition digital multi-media service, as well as facilitate to choose video programs offered by the network video providers on broadband IP network; and power supplies, remote controls, and other devices and accessories. Its products also comprise a line of fiber-optic receivers, which convert a fiber-optic transmission into digital RF signals that are amplified and distributed through an optical cable system; optical transmitters, which are used in the transmission of cable system front optical fiber signal; and cable transmission amplifiers, which enhance the signal quality in cable networks. The company?s products are used to provide bundled cable television, Internet, and telephone services to residential and commercial customers. ZST Digital Networks serves broadcasting TV bureaus and cable network operators through a network of distributors and resellers in the People?s Republic of China. The company was founded in 1996 and is headquartered in Zhengzhou, the People?s Republic of China.
 
KeySTATS
Revenue (ttm): 71.09M
Revenue Per Share (ttm): 10.992
Qtrly Revenue Growth (yoy): 93.10%
Gross Profit (ttm): N/A
EBITDA (ttm): 10.38M
Net Income Avl to Common (ttm): 6.79M
Diluted EPS (ttm): 0.97
Qtrly Earnings Growth (yoy): 82.60%

see that??!!  45million market cap selling for less than 1x price to sales.

 

ZST Digital Networks, Inc. Announces Third Quarter 2009 Results

Net Revenue Up 88% to $28.6 million
Net Income Up 96% to $3.3 million

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