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Valassis Comm. - VCI - close: 36.12 chg: +0.47 stop: 33.75

Company Description:
Valassis offers a wide range of marketing services to consumer-packaged goods manufacturers, retailers, technology companies and other customers with operations in the United States, Europe, Mexico and Canada. Valassis' products and services portfolio includes: newspaper advertising & inserts, preprints, sampling, direct mail, 1 to 1 marketing programs, coupon clearing and consulting and analytic services. Valassis has been listed as one of Fortune magazine's "Best Companies to Work For" for eight consecutive years. Valassis subsidiaries and investments include Valassis Canada, PreVision Marketing(R), LLC, Coupons, Inc., Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc. (source: company press release)

Why We Like It:
Not many stocks were trading higher on Tuesday but VCI bucked the trend with a positive earnings report. More importantly to us yesterday's rally not only broke through 3 1/2-month descending resistance but it also broke through major long-term resistance. If you look at VCI's weekly chart you can draw a trendline of resistance starting with the peak in September of 1999. The P&F chart confirms with a bullish breakout and a $49 target. Our initial target is only the $40 level. Readers have two ways to play this. One way, considering the potential weakness in the major averages, is to wait for a pull back and then buy a bounce near the $35 level, which should be support. Another would be to look for confirmation above yesterday's high near 36.45. Either works for us.


 

Picked on February 23 at $36.12
Gain since picked: + 0.00
Earnings Date 02/22/05 (confirmed)
Average Daily Volume: 337 thousand

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