F5 Networks – FFIV

...I first saw FFIV in my screens late in the year 2003. I posted FFIV as a stock making a final push in early 2004. I only posted FFIV 2 times in 2004 realizing that the stock was heading into a top, the first on 1/16/04 at $31.63 and the second the following week at $37.63. Today FFIV closed at $40.05 and just broke out on HUGE volume from a 7-month base that started in early April of this year.

The base is a cup with handle with the breakout occurring today on volume 922% higher than the 50-day average. Today FFIV showed volume larger than any day in well over 2 years. During my daily screens tonight, I will check to see if this is the largest volume in the history of the stock.

FFIV was a strong fundamental stock in early 2004 as it is a strong fundamental stock now. The difference is the timing:
In early 2004, the stock was completing a huge 300% during the course of 2003. It needed to digest it’s gains and form a proper pattern. When ever you hear me talk about proper patterns, this stock is very close to textbook.

If the market is healthy and the NASDAQ and DOW feel like sparking a rally based on today’s action, look for FFIV to be one of it’s leaders while it tries to establish anew up-trend. If the market fails to follow-through, watch the action of FFIV as it will most likely fall back into a base until further advances in the indices.

DRIV is another stock that has been making my screens over the past few days and weeks. They are both from the same that is ranked #30 out of 197 in Investor’s Business Daily.

My only downfall with this stock is the PEG ratio going forward; it is a bit high for great stocks.

See you tonight,
Piranha