Weekly Picks

["Jim Greening" <JimGinVA@xxxxxxx>]

All,
     I have quite a bit of buying power after being stopped out of my CSCO and 
COMS position this week.  I want to reserve about halve of it to get back into 
the Networking stocks, preferable COMS, at a good entry point.  I'm going to 
use the other halve to move more into the small cap stocks.  My reason is that 
the Russel 2000 Index made an all time high during the past week and its 
relative strength against the S&P 500 has been increasing.  It may be time for 
the small caps to catch up after trailing the market for over two years.  
Looking at the small caps, I like Advanced Logic Research (AALR) and National 
Patent Development (NPD).
     AALR at 12 1/4 is in a Short Term Up Trend Channel (STUTC) within a Long 
Term Up Trend Channel (LTUTC).  The top of the STUTC is at 13 1/8 and the 
bottom at 10 1/2.  The top of the LTUTC is at 16 1/2 and the bottom at 8 1/2.  
I got a MetaStock ROC, ADXR, S/C buy signal on April 30.  The market cap is 
$137.412 million and it has good fundamentals with a PSR of 0.64, PE of 10.99, 
no debt, almost 50% insider ownership, and earnings growth of over 100% last 
year.  AALR bounced off the bottom of the LTUTC in mid April and broke out of 
an Intermediate Term Down Trend Channel (ITDTC) a couple of weeks ago.  It 
rose for a couple of days and then pulled back into the old ITDTC then broke 
out again strongly Friday.  I'm going to open a position Monday of the market 
looks OK.  I'll set my initial target just under the top of the LTUTC at 16 
and my stop just under the STUTC at 9 3/4.
     NPD at 7 5/8 is in a STUTC with the top at 9 and the bottom at 7.  It 
broke out of a Long Term Down Trend Channel in early May and gave a MetaStock 
RSquared, S/C, TRIX buy signal on May 7.  It has a market cap of $77.613 
million and has good fundamentals with a PSR of 0.29, a PE of 5.22, 
Debt/Equity of 0.43, almost 50% insider ownership, and earnings growth of over 
150% last year.  It moved up for a couple of weeks after the breakout then 
pulled back to near the bottom of the STUTC before a strong up move Friday.  
If the market looks OK Monday, I'll open a position with a target just under 
the old high at 22.  I'll set the stop just under the STUTC at 6 3/4.
     I'm sending .GIF charts to everyone on the E-Mail list.  If you're not 
on, and want on, just yell.

Jim