ENGlobal Corp (ENG)
Company
"ENGlobal Corporation has very quickly become one of the fastest growing engineering firms in the United States. While recent successes have put us in the spotlight, we have a long history behind us. The ENGlobal name was born in December 2001 as a result of the merger between Industrial Data Systems Corporation and Petrocon Engineering, Inc., whose roots date back to 1977. Today, the combined company provides a full range of engineering and systems services in all segments of the petroleum, gas, chemical, power, and petrochemical markets." (company website)
Buy
27-Oct-06. ENG was on my list of "early buys" but it got too far ahead to jump in. Since peaking at $8.21 it has pulled back and appears to have recovered with three consecutive up-days, today being the fourth.
- Price momentum (PPO) — picked up rapidly, but has leveled in last two weeks
- Trend (ADX) — weakening (warning sign), but buying pressure (+DI) is picking up again and is still over selling pressure (-DI)
- Money flow (CMF) — very strong flow into the stock
- Relative strength (RSI) — recent strengthening
- Volume — nine consecutive up-days at the beginning of October with good, normal volume
Sell
Bottom line-17%
31-Oct-06. There are not enough expletives in the dictionary to express my feelings about this one! Late last night, after everyone had gone to bed, the company put out the news that it would be taking a $3.5M charge for the third quarter, causing it to report a loss. You can be sure that if they had good news to report they would have trumpeted it in broad daylight.
HOUSTON, Oct 30, 2006, 11:18 PM ET (BUSINESS WIRE) -- ENGlobal Corporation, a leading provider of engineering services, today reported that its earnings for the third quarter ended September 30, 2006 will reflect an after tax charge of approximately $3.5 million primarily resulting from productivity delays and cost overruns on two fixed price projects in the Company's engineering segment. While the majority of the Company's business units are experiencing positive performance, ENGlobal will report a loss for the quarter after consolidating this charge with its other operations.
This morning, the stock was slammed and my stop-loss order executed at the opening price.
