CANSLIM.net Profile:Internet Gold Golden Lines, Ltd., together with its subsidiaries, provides Internet access, e-content/e-advertising, e-commerce, search, and VoIP-based telephony in Israel. The company provides Internet access, international telephony, e-advertising, content, and e-commerce services under the brand name "Smile". It provides Internet services through a network providing dial-up, broadband, Web hosting, Web security, and integration services. Internet Gold, through a joint venture with Microsoft Corporation, also manages the msn.co.il portal that offers MSN features, such as personalized services, varied Internet content, and e-commerce services; Hotmail, Messenger, Passport, and MSN Search, an Internet search engine; and news.  Internet Gold-Golden Lines was founded in 1992 by Eli Holtzman. It was formerly known as Euronet Golden Lines (1992), Ltd. and changed its name to Internet Gold - Golden Lines, Ltd. in 1999. The company is headquartered in Petach Tikva, Israel. Internet Gold Golden Lines, Ltd. is a subsidiary of Euronet Communications. IGLD has increased its earnings versus the year earlier by an impressive +60% +350%, and +233% in the three most recent comparisons for the quarters ended in Jun, Sept, and Dec '06 while the company increase its sales revenues by +32%, +54%, and +58%, respectively.  The company's management owns a whopping 70% stake in its shares, keeping the directors keenly focused on building shareholder value. However, that particularly heavy stake also makes additional stock offerings more likely at some future date, which could serve as a short-term hinderance.  The company hails from the Internet-ISP group which is presently ranked 16th on the 197 Industry Groups list, which places it in the top quartile of industry groups and satisfies the "L" vriteria.

What to Look For and What to Look Out For: There is a very compelling need to be patient due to the fact that IGLD has still not traded above its $15.73 pivot point with gains on at least +50% above average volume to trigger a proper technical buy signal. It is extremely important to wait for a proper technical buy signal to be triggered and avoid the temptation to buy a stock in anticipation of it breaking out. Remember that a stock has not proven itself until it has triggered a technical buy signal, and even then there are no guarantees it will go on to produce great gains.  That said, look for a move above $15.73 on a minimum of +50% above average volume to offer a new technical buy signal.  This stock's 50-day moving average (DMA) line is the next logical area of support. Of course, a stock should always be sold if it falls 7-8% below the purchase price.

Technical Analysis: In the fourth quarter of 2006, the stock enjoyed massive gains as it raced from $5 a to over $15 a share! After such an explosive move, it is very normal to see a stock pull back and consolidate before moving higher. This stock spent the past couple of months doing exactly that, falling under its 50 DMA line, then ralling back above it in mid-April with gains on heavier volume. The stock is currently building the right side of a three month cup-type base. There are three likely scenarios. First, the stock may spend a week or more drifting lower and building a "handle." Second, the stock may jump above its pivot point as it surges to new highs. Third, the stock may spend months "basing" and never break out.  The reason why it is imperative to wait for a new technical buy signal to be triggered is because a proper buy signal greatly enhances the odds of success. IGLD's weekly chart also has bullish characteristics that include several weeks of below average volume while the stock pulled back.