ACS - Affiliated Computer Services $71.39 (+6.54)
ACS is living proof that not every technology-based business is
circling the drain. Perhaps ACS is benefiting from the seemingly
unlimited resources of the Federal Government, which is an
extremely important client of ACS's information technology
services. Additionally, traders may be attracted to ACS because
of the possibility that the company will announce a split soon.
The company's last split occurred in November of 1996 when the
stock was trading nearly $14.00 lower than Friday's closing
price. ACS established a new intraday high of $72.48 on Friday.
This is an encouraging sign that momentum traders are buying the
stock in earnest. That said, we would have liked to see volume
exceed 600,000 shares (volume came in at 542,000). A good entry
point may present itself if ACS can trade above $72.50 on Monday
and make this move with first hour volume exceeding 175,000
shares. In the event of a gap up of over $2.50, it might be wise
to wait for a potential pullback before getting on board. Please
make a note of the fact that we have raised our stop to $64.50 in
an attempt to lock in profits.
Picked on April 26th @ $69.13
Change since picked +2.26
Stop Loss $64.50
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