Connect Your PC for Profits

• Posted by Greg Harmon
• on March 23rd, 2015

The stock market continues to grind along at or near all-time highs. The Nasdaq finally joins in. This has been bringing all sorts of comparisons to the 2000 peak and crash in tech stocks. Which companies were biggest then versus now. How are PE ratios and earnings different. Cool stuff. Not that useful, but cool.

Everyone remembers the high flyers from then. And those that crashed and burned as well. Sock puppets and CMGI Field comes to mind. But there are others that went public in that bubble and crashed and burned only to grind their way back. One of those is a company called PC Connection. PC Connection ($PCCC) was founded in 1982 with the birth of the personal computer but really ramped things up as they IPO’d in 1998.

The stock traded opened at 13.34 and moved to 70 at its peak before falling back quickly to abort 10 with pops to 17 and drops below 5. 2013 was a turning point though. After a 12 year consolidation it started higher. Breaking over 18.50 was the key. That also happened to be a 23.6% retracement of the move lower. It is rising now and testing milestones along the way. In the short term chart below the recent price action shows a 3rd test of the 26 area. A break above this would give a target of 30 on a Measured Move, and take it above the 38.2% retracement of the tech crash.

This stock is far behind the Nasdaq. What makes it interesting technically is that there is almost no price history between the current level and the 61.8% retracement at 44.48. That would be a big move.

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