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NEI breakout?

|Includes: Network Engines, Inc (NEI)

One stock that I’ve followed for a long time is a small New England-based server apps provider named Network Engines.  I made a lot of money on a run-up it had years ago, so I’ve always kept it on my radar.  CEO Greg Shortell has done a great job in recent years of taking a company that was always losing money, into a consistently profitable company.  Margins aren’t great, it’s not a great business, but he’s done a good job, I think.

Anyway, they reported very good earnings a few days ago.  And after selling off brutally in May due to losing some business from Oracle – by far their biggest customer – they have based, and now started moving up.  It looks to me like their chart may be forming a breakout.

 

I do own NEI at the moment, but could take profits at any time if it looks like the breakout is breaking down.