Back in April when posting the new 12 month forward looking evaluation line (E-line), we posted an article where our bullish stance could be summed up with the one sentence in the article "The above assumption is practically a given."
At the time, National Oilwell Varco (NYSE:NOV) was trading at $77.80. Five months later we are at $144.50. [The 2 for 1 stock split is as of 10/01/07.] As you know, the evaluation line is not supposed to depict a stock price. The E-line is used to determine if an investment opportunity exists. Over 80% of stocks cross the evaluation line at least once in a twelve month period. Such being the case and true to our method, unless you have nothing better to do with the cash over the next seven months, it may be time to cash out and re-enter at a lower price over the next seven months.
As you can see from the CrossProfit chart, NOV has not crossed the line, yet. In such cases where the stock has gotten ahead of itself, there may not be a weekly close below the line. However, intraday high/low should come very close over the next several months. This may not be the top and NOV could possibly go higher, but this is as close as we want to get - for now.
Just to dispel any misunderstandings, we are long term bullish on NOV. Future updates may be posted in a timely manner only after associates have changed their positions.
Almost 100% profit in six months is slick. Another professional witticism; never regret a profit.
Disclosure: CrossProfit associates were recent shareholders. Analyst and family members are not shareholders. Sell-side research discontinued after Varco merger (02/2005).