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ScanSource - SCSC - close: 57.58 chg: -1.44 stop: 62.01

Company Description:
ScanSource, Inc. is a leading international distributor of specialty technology products, including automatic identification and data capture (AIDC) and point-of-sale (POS) products through its ScanSource sales unit; Avaya communications products through its Catalyst Telecom sales unit; communications products from Intel and NEC through its Paracon sales unit; and electronic security products through its ScanSource Security Distribution unit. The Company serves the North America marketplace and has an international segment, which sells AIDC and POS products in Latin America and Europe. Founded in 1992, the Company markets products from more than 90 technology manufacturers to over 15,000 value-added technology resellers and is committed to empowering them with tools and services designed to help them grow. (source: company website)

Why We Like It:
We normally do not like to play a stock with average volume under 200,000 shares a day. Yet the action in SCSC looks too tempting to pass by. This tech stock has been consolidating sideways for the past few months and just recently broke down below its simple 200-dma, exponential 200-dma and price support in the $59-60 range with volume rising on the declines. Now the stock's P&F chart has also broken through P&F chart support and points to a $51 target. We happen to agree. While there is some support at the $55.00 level the $50-51 level is much more significant and SCSC is a huge target for profit taking after its two-year rally. We want to go short at current levels although a failed rally under the $60.00 mark would also make an attractive bearish entry point. Short-term traders can target the $55.00 level. We are targeting $51.00 before the company's late April earnings report.


 

Picked on March 13 at $ 57.58
Change since picked: - 0.00
Earnings Date 04/28/05 (unconfirmed)
Average Daily Volume = 95 thousand

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