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MYRG is a stock I’ve been watching for a few weeks. This stock is typical of the type I like to generally follow, i.e. a stock that IPO’ed not more than a few years ago coupled with good fundamentals along with a good technical setup, and trading at or near all time highs. An obvious danger is the overall thin trading which increases the volatility potential, but the chart also has some volume action that I think favorable. In particular I note the December and January volume increase during the nice uptrend. That was followed by the current ideal looking sideways consolidation with quieter relative volume. Note the shallow depth of the current base with price tracking nicely along its 50-day and how the daily price ranges have tightened up when compared to the looser daily action during all the preceding months leading up to current base. Constructive price action all. A buy signal for me would be a move over recent resistance of 15.72 on above avg. volume.
MYRG ranks number one overall in its Building Maintenance & Service group, a group that ranks slightly above average (#74) amongst all 197 groups. Fundamentally it ranks high and is ranked in the top 1% of entire stock market for earnings (combination of past/ recent/forecast earnings).
MYRG is another of those stocks getting some ink for being a play on the Obama stimulus package, with energy and infrastructure spending supposedly benefiting companies like this one.
I think MYRG is worthy of watch-list status as long as current base does not fall apart.
Currently long ARST and TNDM as of 3/31/09, both of which I found using the same methodology as MYRG.
It pays to be patient with setups and let price come to you. Today after a month of patience MYRG finally broke out on high relative volume. Of course it remains to be seen if there is follow through tomorrow and the beginnings of a new upward trend. If not...honor thy stops. Long MYRG.
Closed out the position. Though the breakout day volume was good for such a thinly traded issue, a follow through has failed to materialize as once again anemic volume has set in. With the market zooming most days since the breakout MYRG basically did nothing, better to move on and feed the money to new breakouts, such as SAPE which I just added to portfolio. When I buy a breakout I expect it to move very quickly the next day or two.
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