Charts I Like: Cherokee International

Cherokee Int’l Corp. (CHRK) is another stock with an attractive chart. Cherokee International, not to be confused with clothier Cherokee Inc. (CHKE), designs and manufactures custom power supplies for original equipment manufacturers (OEMs). Not exactly sexy stuff, but with a chart like CHRK in a market like this, who cares?

Click to enlarge

Cherokee has posted mixed financial results. Revenues last quarter were up year-over-year but down sequentially. CHRK earned $.01 in the three month period, versus losses last year. Backlog is up, but book-to-bill ratio is down.

Perhaps investors are excited about the pending merger with Lineage Power Corp., which is expected to close at any time.

Regardless of the reason, CHRK’s stock trend is positive. Ino.com’s trend measurement formula scores it at +90 on a scale of -100 to +100, and CHRK has spent most of October and November above its 50-day moving average. That’s pretty remarkable for a tech stock in this environment.

DISCLOSURE: No position.

Comments

[moose60061:]

This is too funny.................... was bought out and de-listed last Thursday and here you are recommending it-lol
Where were you 2-3 weeks ago when it was under $3.

2008 Nov 24 09:14 AM