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Cogent Inc. - COGT - close: 25.21 chg: -1.17 stop: 27.26

Company Description:
Cogent Systems is a leading provider of Automated Fingerprint Identification Systems, or AFIS, and other fingerprint biometric solutions to governments, law enforcement agencies and other organizations worldwide. Cogent's AFIS solutions enable customers to capture fingerprint images electronically, encode fingerprints into searchable files and accurately compare a set of fingerprints to a database containing potentially millions of fingerprints in seconds. (source: company press release or website)

Why We Like It:
COGT is what you might call a "homeland security" stock. Unfortunately for shareholders the returns over the past few weeks have not been very patriotic. The stock produced a bearish reversal in early August and its been a steady trend of lower highs ever since. We like today's breakdown as a new bearish entry point. COGT broke support near $26.00 and its simple 100-dma on above average volume. Technical indicators are naturally bearish. Oddly enough the weekly chart for COGT is painting a very big neutral wedge-like pattern of lower highs and higher lows. We are going to target the bottom trendline of support near $22.00-22.50. We will plan to exit before COGT reports earnings in late October. Looking at the intraday chart it appears that COGT could rebound back toward broken support now new resistance at $26.00. A failed rally near $26 could be used as a new bearish entry point.

Picked on September 22 at $25.21
Change since picked: + 0.00
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume: 874 thousand
 

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