Re: [CANSLIM] STST

From: rjjick@att.net
Subject: Re: [CANSLIM] STST
Date: Sat, 09 Nov 2002 19:50:45 +0000

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Hi.  Just to introduce myself: Jeanne Jickling, a long-time lurker, who enjoys 
this board and values it for educational reasons, thanks to the many generous 
contributors.

Ian: I checked STST on the Investor's Business Daily website which I access as 
a subscriber to IBD. STST rates a C+, a 72 score.  EPS 87, RS 91, industry 
group strength D+; Sales,Profit Margin,Return on Equity A, Acc/Distribution B+.
Letter ranks: Technical C+, Fundamental C, Attractiveness B-, Group Technical 
C, Group Fundamental C.

> Hi all:
> 
> I can't even remember the last time I proposed a stock to the group ... but here 
> goes:
> 
> STST is a Nasdaq Small Cap stock, with an ADV of just 7000 shares, trading at 
> $9.30 right now. I do not know their EPS/RS numbers as IBD doesn't seem to print 
> them anymore for the Small Caps.
> 
> The company is Sensytech (STST - Nasdaq Small Cap). They are a defense 
> contractor that manufactures passive surveillance systems - early warning 
> systems, airborne imaging systems, communications reconnaissance systems, 
> shipboard support systems etc... The current interest/growth in homeland 
> security seems to bode well for Sensytech, as their backlog has increased a 
> whopping 635% through the first 9 months of the year.
> 
> For their June Q this year, they made $0.16 per share on revenue of $9,000,000 
> (compared to $0.08 per share on revenue of $4.1 million a year earlier).
> 
> They currently only have about 4,000,000 shares outstanding, but they did file a > share registration in late August to issue a secondary of 2,000,000 shares. I do 
> not know the status of this, and realize that it is definitely a 'question mark' 
> on the stock right now.
> 
> With this week's Republican victory in the House and Senate, I've got to figure 
> that these 'under the radar' defense/security stocks have a big chance of 
> becoming insitutional darlings over the next 2 years, as their revenues and 
> earnings ramp. I have no idea what the current institutional interest in STST is 
> though.
> 
> The chart is very interesting to me right now. They have been flat-lining for 
> many months now, with $9.25 as a 4-month resistance level, and with $10.46 as 
> the 52-week high. There have been 3 days in the past week (including the last 2 
> days), where ADV is much higher than normal (around 20,000) - so there has 
> definitely been some accumulation going on. There is resistance here at the 
> $9.25-$9.30 level, again at $10, and at the high of $10.50.
> 
> I suspect they will report Q3 earnings next week.
> 
> For those with a tolerance/taste for "illiquid CANSLIM", STST is one to watch 
> for a significant, sustained increase in ADV, and a penetration through support 
> levels.
> 
> 
> Cheers,
> 
> Ian

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