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NCI Bldg - NCS - close: 47.65 chg: -1.58 stop: 50.15

Company Description:
NCI Building Systems, Inc. is one of North America's largest integrated manufacturers of metal products for the nonresidential building industry. The Company operates 44 manufacturing and distribution facilities located in 17 states, as well as Mexico and Canada. (source: company press release or website)

Why We Like It:
Shares of NCS are breaking down again. The oversold bounce from its June low failed near $54.00 and it has been a relatively steady trend of lower highs since then. This past week has seen NCS produce another failed rally under $52.00 and its 200-dma. Today's decline broke down under the June low and support near the $48.00 level. The MACD on the daily chart has produced a new sell signal. Meanwhile the P&F chart has produced a descending triple-bottom breakdown sell signal. It might be worth nothing that the P&F chart's target is only $49, which has been exceeded. We suspect that NCS may be able to trade towards $40. There does appear to be some support near $45.00 but we're going to target a decline into the $42.50-40.00 range. Be ready for a bounce when shares near $45. We do not want to hold over the late August earnings report.

Picked on July 27 at $47.65
Change since picked: + 0.00
Earnings Date 08/31/06 (unconfirmed)
Average Daily Volume: 383 thousand
 

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