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MLR - PMP 4/21/15

The major averages rallied yesterday on lower, below average volume, though the lower volume was expected after Friday's volume-boosting options expiration.

China cut the amount of reserves commercial banks are required to hold by one percentage point, a bigger-than-normal reduction that will free up around $200 billion for lending. Markets acted favorably. Indeed, the number of actionable pocket pivots was impressive:

Harmon International (HAR) had another pocket pivot after our earlier notice on HAR's 4/16 pocket pivot.

Social networking site FB - pretax margin 56.5%, strong earnings and sales, institutional sponsorship has grown since the company went public 12 quarters ago.

Car dealership Lithia Motors (LAD) - earnings and sales are accelerating, group rank 37.

Hardware and agricultural retailer Tractor Supply Co. (TSCO) - ROE 29.2%, group rank 65.

Cloud-based human capital management software company Paycom (PAYC) - ROE 24.1%, earnings and sales accelerating, group rank 52. PAYC just closed above its 50dma.

Electronic postal service company Stamps.com (STMP) - pretax margin 28.1%, ROE 21.5%, accelerating earnings and sales, group rank 24. STMP had three gap ups with its most recent resulting in tight sideways consolidation.

Supply chain management software company Manhattan Associates (MANH) - pretax margin 28%, ROE 48.5%, earnings and sales accelerating, group rank 52.

Clothing retailer Hanesbrands (HBI) - ROE 44.1%, earnings and sales accelerating, group rank 38. HBI has been trading in a constructively tight range over the last few weeks.

Office furniture supplier HNI Corp. (HNI) - ROE 22.4%, strong earnings, accelerating sales, group rank 31.

Futures are up about 0.5% at the time of this writing as the NASDAQ prepares for yet another run at the 5,000 level.

This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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