The Next Winner on Nobody’s Radar
- Posted by Greg Harmon
- on March 20th, 2013
Looking for that one stack that nobody is following that is ready to make a run. Well here it is. CBIZ, $CBZ, is essentially an outsourcing company for all those things that the skilled players in a company do not want to do. They do accounting, benefits servicing, recruiting and many other functions. Best of all they are headquartered in Cleveland! But what makes the stock interesting is the price action. In the daily chart below it has put in a rounded bottom, perhaps a ‘W’ pattern, and
is consolidating under 6.58 resistance. As it sits there it has a Relative Strength Index (RSI) that is bullish and a Moving Average Convergence Divergence indicator (MACD) that has pulled back from extreme levels. A break higher looks toward the 6.79 top in February and then 7.07 from October 2012 as resistance. Moving out to the weekly chart shows that the 200 week Simple Moving Average (SMA)is the culprit holding it up mow. The momentum indicators and oscillators
are supportive of further upside price action on this timeframe as well. If it does break out it has over 11% short interest that could fuel a squeeze higher. Take note that it is thinly traded and about 25% owned by insiders and large block holders.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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