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None JTX

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Jackson Hewitt - JTX - cls: 26.10 chg: -1.21 stop: 28.05

Company Description:
Jackson Hewitt Tax Service Inc., with over 6,500 franchised and company-owned offices throughout the United States during the 2007 tax season, is an industry leader providing full service individual federal and state income tax preparation. (source: company press release or website)

Why We Like It:
Shares of JTX have been struggling for months. The stock has been stuck in a trading range but the pattern of lower highs definitely gave it a bearish tone. Last week JTX reported earnings and missed estimates by 12 cents. The stock gapped down on the earnings news and then bounced. Unfortunately for shareholders the bounce failed near $28.00. Now the stock is plunging toward support. We did not see any specific news to account for today's weakness but volume did come in above average on the sell-off. JTX has significant support at the $26.00 level. A breakdown below $26.00 would be very bearish. We're suggesting a trigger to short JTX at $25.85. If triggered we're going to target the $22.50-22.00 range. Look for potential support near $24.00.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/06/07 (confirmed)
Average Daily Volume: 391 thousand

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