Zeev's Turnips Patch-No Politics (ZEEV)

[ardent jd]

QLGC

Well, since you asked... (g)

I agree that, in the short-term, this stock may have more work to do on the downside basing. But my typical holding period is a year, so I take a longer-term perspective than most on this board. And on that basis, it looks pretty compelling. Here's the weekly chart:

http://stockcharts.com/def/servlet/SC.web?c=QLGC,uu[r,a]wacayyay[df][pb50!b200][vc60][iUb14!Ll14]&am...

The series of dojis in the 27 area, along with the recent ADX spike and the DI+ below 10 and the oversold RSI, should provide very strong support. Notice that the stock had huge runs whenever these conditions prevailed before, and this time the readings are more extreme.

On the fundies: sure they're bad short-term. But this is a well managed company with great balance sheet and a dominant position in a business that is still growing decently. Gross margins are a good indication of the "quality" of a hardware company's business, and the only others with similar GM's off the top of my head are CSCO and INTC...not bad company to be in.