Today’s Top Pick update comes from Joseph Parnes, editor of the Shortex Market Letter. His pick has just crossed above the top of his buy range, so reduce risk by buying on a slight pullback if the opportunity arises.
“Hologic, Inc. (HOLX) is a provider of mammography and innovative, minimally-invasive technologies for gynecologists and obstetricians. [The stock has been] pressured by the purchase of GenProbe (GPRO).
“Free Cash Flow (FCF) of $390.1 million, on booking of net income of $44.3 million, is a plus. Downed-gap plunge: Since early May HOLX has been building a base below its 50- and 200-day moving averages. [It is now] challenging primary resistance at 17.80-18.40, [there is] secondary resistance at 20-21.
“Recommended at $17.34 on January 1, 2012; reached its intermediate objective in early April at 22.16: Return of 27.79%. Buying Range: 16-18. Near-Term Objective: 22. Intermediate-Term Objective: 28. Stop Loss: 15.”
- Joseph Parnes, Shortex Market Letter, June 8, 2012