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