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Georgia Gulf - GGC - close: 34.33 change: +0.87 stop: 30.95

Company Description:
Georgia Gulf, headquartered in Atlanta, is a major manufacturer and marketer of two integrated product lines, chlorovinyls and aromatics. Georgia Gulf's chlorovinyls products include chlorine, caustic soda, vinyl chloride monomer and vinyl resins and compounds. Georgia Gulf's primary aromatic products include cumene, phenol and acetone. (source: company press release)

Why We Like It:
Here's an interesting observation. On June 1st GGC cut its earnings estimates and the stock climbs higher in response with big volume fueling the move. We think the volume in GGC is the key. The stock bottomed near the $30.00 level a couple of weeks ago after a three-month channel lower. Shares broke through that trendline of lower highs in the last week and now the stock is seeing lots of volume, which looks like accumulation by fund managers. Combine this observation with a strong bounce off Point & Figure chart support and GGC looks like a short-term bullish candidate. We are willing to go long at current levels. More conservative traders may want to wait for a breakout over the $35.00 mark, which acted as resistance on Friday. More aggressive traders may want to buy a dip toward the $32.00 or $33.00 levels. We're placing our stop loss at $30.95 under the lows for the last two weeks. Our target is the $38.50-39.50 range.

Picked on June 05 at $34.33
Change since picked: + 0.00
Earnings Date 07/28/05 (unconfirmed)
Average Daily Volume: 598 thousand
 

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