Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Friday, January 27, 2006

ESRX in the Home Stretch

I started to cover Express Scripts (ESRX) in early October as it neared the $60-$100 range while forming a short term consolidation before attempting to make the big move. I officially added the stock to the MSW Index on 10/15/05 at $61.16 as it broke-out into this range. Below is what I said when I added the stock to our Index:

“Express Scripts, Inc. (ESRX) was added to the weekly screen as the stock will debut on the MSW watch list. It is above $60 and has a long history of strength so it is a prime candidate for the $60-$100 run. Some of you may think the stock is priced too high and has already run up too much for additional gains but I will counter by asking you to look at former MSW stocks that started coverage in the $60 range: HANS and BMHC. Also take a look at Tenaris (TS). The stock has been mentioned on a handful of daily screens and was named on our short list during last week’s final screen. The stock has entered the $60-$100 run and is currently sitting slightly above the 50-d m.a. which is a trend buying opportunity.” – 10/15/05

To date, (ESRX), (HANS) and (TS) all remain on the MSW Index with Tenaris (TS) making the biggest moves into new high territory in recent weeks.

I made these comments on the MSW Index about (ESRX) last Saturday:
“The stock failed to cross $90 two times this week. The resistance at this level continues to grow. A strong close above $90 is an instant buy. Rating: Buy with move above $90” – 1/21/06

Today, the stock is up over 3% and has finally broken above the resistance level at $90. With the move above $90, we are now in the final stretch of the $60-$100 run. The stock has gained a respectable 50% over the past three months on the MSW Index. I don’t know about you but I will always take a steady 50% gain in a $60 stock rather than roll the dice with a $5 stock that has no prior history of strength.

Now is the time to place the physical sell stop to protect the gains from the $60-$100 move. ESRX is just another example of a long line of stocks that easily trek from $60 to $90+ in a matter of months.

The image will enlarge to the proper size!



Piranha

2 Comments:

At 5:06 PM, Blogger c said...

Looking at the chart, I find it interesting that ESRX did not pull back from 60 when it reached it the first time (like so many other stocks in the run do).

 
At 10:04 AM, Blogger Chris Perruna said...

Well, it did trade sideways for about 5 weeks (this was a small consolidation) before the run towards $100.

 

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