NEW BULLISH Plays
Hi-Tech Pharmacal Co. - HITK - close 24.73 change +0.54 stop 22.45
Hi-Tech Pharmacal Co., Inc. (Hi-Tech) is a specialty manufacturer and marketer of prescription, over-the-counter (OTC) and nutritional products. The Company develops, manufactures and markets products in three categories: generics, prescription brands and OTC brands. It produce a range of products for various disease states, including asthma, bronchial disorders, dermatological disorders, allergies, pain, stomach, oral care, neurological disorders, glaucoma and other conditions. The Companyâ€™s generic products are primarily prescription items and include oral solutions and suspensions, topical creams and ointments, as well as nasal sprays. It also specializes in the manufacture of products in its sterile facility capable of producing liquid ophthalmic, otic and inhalation products. (source: company press release or website)
Why We Like It:
HITK looks like it is on the verge of breaking out of a downtrend line that started on January 4th. It also has recently rallied to a prior high from April 15. The stock has upward trend line support that began on February 5th. I suggest readers use one of two triggers to buy HITK stock. If the stock pulls back to $24.05 buy the stock. This is just above today's lows and provides an ideal entry point. However, if HITK breaks out to $25.25 before pulling back buy the stock. There is little resistance up to $26.50 which is our first target. A more aggressive second target is $27.85. Our initial stop is $22.45 which is below the stock's 20-day and 50-day SMA. Our time frame is several weeks.
Trigger to buy HITK at $24.05 or $25.25, whichever level is hit first.
Suggested Position: Long HITK stock at one of two triggers listed above.
Entry on April xx at $xx.xx
Earnings Date July 5, 2010 (unconfirmed)
Average Daily Volume: 230,000
Listed on April 29, 2010