I will be purchasing my second installment in TECH come Monday morning. This will give me a 2/3rd position. All systems are go on my daily, weekly and monthly momentum indicators. Good thing is that I caught this one at the start of the weekly and monthly momentum run. The all-time monthly closing high of $65 is currently being challenged and I believe that we will be off to the races given the momentum shift that has recently occurred.
Those of you interested in the fundamental side, click on the following link:
http://www.techne-corp.com/pdf/Techne_AR_2007.pdf
As can be seen from the information provided, the company has had a steady increase of net sales (10% increase YOY), net earnings (16% YOY), earnings per share (16% YOY), gross margin was 79% in FY 07, ROE was 22% in FY 07, ROA was 21%, etc.
In addition, this 2.6B market cap company ended FY 07 with 1/4B cash in the bank. Best of all, get this, no long term debt of other liabilities. Last but not least TECH has recently been approved to begin warehouse and distribution operations in China.
All of this leads to a very solid foundation for TECH. The one area that I would like to see improve is revenue growth with it being around 10% per year. As a trend trader, this will need to increase if we are to continue to see a steady increase for the company moving forward. The company is actively thinking about the use of their cash to grow the company through product development, improved infrastructure and outside acquisitions. Most exciting of the expansion plans is in China where approvals for operation were recently acquired. Shipments to the Chinese facility that has 11 employees began in August. TECH began servicing their four distributors in China this month.
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