Investing

Top Break-Out Stocks (APSG, CYOU, COOL, TSRA, TIVO)

Today’s 52-week high review list showed many names which looked like they were trying to break out, but then the pullback kept many of them from making the rounds.  But companies such as Applied Signal Technology, Inc. (NASDAQ: APSG), Changyou.com Limited (NASDAQ: CYOU), Majesco Entertainment Co. (NASDAQ: COOL), Tessera Technologies Inc. (NASDAQ: TSRA), and TiVo Inc. (NASDAQ: TIVO) are showing significant strength.  Most of these are on news or on follow-through data, so we offered a brief explanation for each as follows:

Applied Signal Technology, Inc. (APSG) is trading up 16% at $25.65 on more than 400,000 shares; prior 52-week range was $12.85 to $22.30.  It seems that all the surveillance and intelligence orders are staying high during the Democratic regime despite all the criticism of the Patriot Act and surveillance of citizens.  How else do you explain a significant beat to earnings and raised guidance?

Changyou.com Limited (CYOU) has technically gotten back under the prior intra-day high, but is still up 1.7% at $38.30 today.  This one has now doubled from its IPO level.  If this price holds, it would be the highest close since coming public.

Majesco Entertainment Co. (COOL) is up 23% at $2.08, and the prior range is $0.36 to $1.93.  Even with today’s run, the market cap is a mere $63 million.  As we noted on our March 31 weekly “10 Stocks Under $10″ Newsletter…we have been very cautious on for well over a year.  But now the company has given up on trying to have a major hit, which we agree on… Now the company has switched its focus to be more of a Wii game publisher and it just might work…. With a mere $30 million market cap, one win here could turn things around massively.”  The new lineup at E3 is being viewed as a hit and the company’s push to lower-priced games is working, and “Cooking Mama” is helping too.

Tessera Technologies Inc. (TSRA) is up 8% at $26.36 on the day after securing a patent licensing pact from Motorola.  The prior range was $8.33 to $24.89. Its recent patent verdict from the ITC is helping the company lock-up licensed supply pacts.

TiVo Inc. (TIVO) is now up 50% at $10.50 on the day, and its prior 52-week range was $4.00 to $9.07.  Based upon what we saw at VSinvestor.com this morning, this actually represents a 5-year high.  Winning this ongoing perpetual patent case against EchoStar is the culprit.  While an appeal is certain, this is another potential windfall for the company.

Jon C. Ogg
June 3, 2009