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  • Technical Outlooks for CTIC, ZQK, FRPT, and FCEL 0 comments
    Aug 19, 2009 12:42 PM | about stocks: FCEL, FRPT, ZQK, CTIC
    Cell Therapeutics, Quiksilver, Force Protection, and FuelCell Energy are all shaping up to be trade-worthy.

    Though news and corporate results tell investors what a stock should be worth, a stock's chart can better tell you what it's apt to be worth - at least in the near future. With that in mind, charts of Cell Therapeutics, Inc. (NASDAQ:CTIC), Quiksilver Inc. (NYSE:ZQK), Force Protection Inc. (NASDAQ:FRPT), and FuelCell Energy Inc. (NASDAQ:FCEL) have dropped a few key hints that could set up a nice short-term trade or two. Let's take a quick look.

    Cell Therapeutics, Inc. (CTIC) is hardly new to the Small Cap Network - just consider this a follow-up to the last update from August 4th.

    At the time, CTIC shares were approaching the tip of a wedge. Our assumption was a bearish one - that Cell Therapeutics shares would break the support line and move lower. Good thing we ultimately wanted to 'wait and see' though.... the stock has instead made a bullish break above the upper resistance line of the triangle shape.

    Though still a tad shaky, it is what it is.


     

    There's still no update about pixantrone, Cell Therapeutics' test treatment for non-Hodgkin's lymphoma (NHL). Though we didn't expect to hear anything at all until the end of the year, the FDA has stated in the meantime they'll "respond to Cell Therapeutics' priority review request for pixantrone as a treatment for non-Hodgkin's lymphoma". That may or may not be a decision date, but it should move the stock (either way) for sure.

    Quiksilver Inc. (ZQK) had such a good July that it's a little disappointing to present it as a bearish candidate. But, after a key support line was broken on Friday, and seeing all the bearish follow-through since then, we have to call it like we see it.

    To the company's credit, Quiksilver has beat estimates in its last four quarters, and analysts expect the company to grow profits this year and next year; the forward-looking P/E of 10.1 isn't expensive either. For that reason, we don't advocate viewing ZQK as a long-term, home-run short trade.... you'd be fighting the bigger tide.

    In the meantime though, a revisit to $1.50 or even $1.05 is a distinct possibility.


     
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    Force Protection Inc. (FRPT) was actually one of our 'Small Cap Earnings Round Up' stocks from August 10th. Though we were defending the sharp dip in earnings for the company (Force Protection earnings from a year earlier were abnormally high, not the other way around), it wasn't like we were singing the stock's praises.

    And, though we're still not singing the praises of FRPT, we have decided there's a solid - albeit speculative - upside trade shaping up on this chart.

    The huge gap between June 30th and July 1st is aching to be closed. Simultaneously, there seems to be support around $4.50. The only thing missing is a little buying volume, but that will come too if Force Protection shares can edge just a hair higher.


     

    With a current P/E of 8.4 and a future (projected) P/E of 9.1, it's hard to say FRPT isn't a bargain.

    There are two key themes evident on the chart of FuelCell Energy Inc. (FCEL). The first one is a horizontal trading range that's still intact, while the second one is a rising support line that was broken last week.

    The sideways range is the zone between $3.53 and $5.49 (a wide 'zone', admittedly, but that's still what it is). FuelCell Energy shares at their current price of $3.68 clearly haven't broken down just yet, so this trade is only pending at the moment. However, the odds of this bearish/short trade materializing got a whole lot better last week when the rising support line (purple) was broken.

    If the horizontal support level breaks as well, a move back to $2.00 is a possibility.


     

    Part of the reason for the breakdown may simply be a lack of news. The last we heard from FuelCell Energy was they had raised $24.2 million in July via the sale of stock.... which is hardly motivational. A lack of profits this year or next isn't helping FCEL shares any either.

    If you'd like to know of any changes in our opinion of these four stocks (or if we officially recommend them as trades), be sure to sign up for free newsletter today. It's delivered 2 to 3 times per week.
    Stocks: FCEL, FRPT, ZQK, CTIC
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