Mercury Systems Inc (MRCY)

[Carolyn]

"Mercury Computer Systems broke out deep within its consolidation on April 19. By May 2 it had moved as high as 55.50, rounding out a 14 week base. The stock then pulled back to its pivot point of 44.38 before resuming its assent. It finished Firday 4% short of its high.

The current consolidation is part of a larger base begun in March of last year. Mercury has repeatedly run into resistance around 54.50. Watch for it to move past its new pivot point at 55.63.

Earnings growth slowed last spring and summer. It's since rebounded, with profit rising 15% in the Dec. fiscal second quarter adn 31% in the third quarter. June fourth-quarter profit is expected to climb 85%.

In all, the seven analysts surveyed by First Call predict earnings will rise 18% in fiscal 2001 compared with a 75% increase in 2000.

Sales growth has been on the upswing the last two quarters, rising from 10% to 22% to 45%."



From Investors Business Daily, May 29, 2001