Long-time CANSLIM.net readers noticed this stock long ago, as it was featured in the October 2003 edition of CANSLIM.net (read here).  At the time, the stock's pivot point was $17.80 (adjusted for 3/2 stock split) which was September 30, 2003's high plus $0.10.  It has been anything but a steady rise, however, as a steep '04 correction took many months to ultimately recover from.  In March '05 it reappeared in the CANSLIM.net Mid-Day BreakOuts Report (read here).

Comtech Telecommunications Corp. (CMTL -$3.175 or -7.11% to $41.51) gapped lower on Monday after the company was downgraded by an analyst form "Buy" to "Hold."  AG Edwards Analyst Mark C. Jordan downgraded the company based on valuation concerns and limited "upside opportunity."  The stock quickly sliced through its 50-day moving average (DMA) line and fell under its most recent pivot point.  However, after the heavy morning selling of the first 15 minutes abated, buyers showed up and the stock stabilized above its 50 DMA throughout the afternoon.  Despite the negative close and significant price decline, it was somewhat encouraging to see this stock close above the mid-point of its intra-day trading range and also close above its 50 DMA, which is a sign of it finding good institutional support at the right place.  But the fact that it closed the session back down under its October high closes means that it has failed back into the prior base and completely negated the November 21st, 2005 breakout.  This action suggests that the stock is likely due to spend a longer time consolidating before it might be ready to attempt another run at new highs.  Stop losses at 7-8% are the often suggested measure to limit the damage whenever a high-ranked stock falls following any properly made buy within the guidelines. 

Some members have recently remarked about a sizeable short interest in this selection.  It should be noted that short interest can actually be a helpful source of future buying demand, and it is not safe to make assumptions about what a high level of short interest implies.  For example, short covering may have helped CMTL avoid an uglier loss today.