Mid Caps on the Move

Today I used Barchart to sort the S&P 400 Mid Cap Index to find the stocks with the best technical indicators and charts and found some familiar names.  Today's list includes Deluxe Corp (DLX), Esterline Technologies (ESL), Arrow Electronics (ARW), Scientific Games (SGMA), and  Bally Technologies (BYI):

Deluxe Corp (DLX)

Barchart technical indicators:

• 64% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 20 new highs and up 15.01% in the last month
• Relative Strength Index 69.16%
• Barchart computes a technical support level at 38.33
• Recently traded at 38.40 with  50 day moving average of 36.78

Esterline Technologies (ESL)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 20 new highs and up 18.09% in the last month
• Relative Strength Index 78.67%
• Barchart computes  a technical support level at 81.68
• Recently traded at 82.39 with a 50 day moving average of 75.53

Arrow Electronics (ARW)

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 19 new highs and up 20.51% in the last month
• Relative Strength Index 80.67%
• Barchart computes a technical support level at 42.76
• Recently traded at 45.32 with a 50 day moving average of 40.31

Scientific Games (SGMS)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 19 new highs and up 25.92% in the last month
• Relative strength Index 80.49%
• Barchart computes a technical support level at 13.16
• Recently traded at 13.30 with a 50 day moving average of 11.26

Bally Technologies (BYI)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 19 new highs and up 29.86% in the last month
• Relative Strength Index 85.78%
• Barchart computes a technical support level at 69.87
• Recently traded at 70.48 with a 50 day moving average of 58.32

Bally Technologies -- Barchart's Chart of the Day

Summary:

Bally Technologies (BYI) is the Chart of the Day.  The diversified gaming machine manufacturer has gained 57.17% in the past year and has a Trend Spotter buy signal.

Article:

The Chart of the Day is Bally Technologies (BYI).  The stock is up 57.17% and has both a 100% Barchart technical buy signal and a Trend Spotter buy signal.  I found the stock by sorting the New High List for frequency.

The company is a diversified, worldwide gaming company that designs, manufactures and distributes gaming machines and computerized monitoring systems for gaming machines. It also owns and manages a significant installed base of gaming machines They own and operate casinos and in Germany, is a full-service supplier of wall-mounted gaming machines and amusement games.

Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Brachart technical indicators:

• 100% Brachart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 19 new highs and up 28.71% in the last month
• Relative Strength Index 85.45%
• Barchart computes a technical support level at 68.87
• Recently traded at 70.92 with a 50 day moving average of 57.60

Fundamental factors:

• Market Cap $2.93 billion
• P/E 21.40
• Revenue expected to grow 5.70% this year and another 9.40% next year
• Earnings estimated to increase 40.00% this year, an additional 13.10% next year and continue to increase 9.00% a year for at least the next 5 years
• Wall Street analysts  issued 4 strong buy, 7 buy and 4 hold recommendations
• Financial Strength is B+

If the stock drops below its 50 day moving average that may be a good time to exit the trade,

5 Mid Cap Winners

Today's list comes from using Barchart to sort the S & P 400 Mid Cap Index to find the stocks with the best technical indicators and charts.  The list includes MEMC Electronic Materials (WFR), Lender Processing Services (LPS), Bally Technologies (BYI), Bill Barrett Corp (BBG),Waste Connections (WCN):

MEMC Electronics Materials (WFR)

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 13 new highs and up 50.84% in the last month
• Relative Strength Index 74.59%
• Barchart computes a technical support level at 6.13
• Recently traded at 7.26 with a 50 day moving average of 5.01

Lender Processing Services (LPS)

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signals
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 28.53% in the last month
• Relative Strength Index 78.70%
• Barchart computes a technical support level at 28.05
• Recently traded at 32.63 with a 50 day moving average of 26.39

Bally Technologies (BYI)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 4 new highs and up 13.85% in the last month
• Relative Strength Index 69.26%
• Barchart computes a technical support level at 54.68
• Recently traded at 55.79 with a 50 day moving average of 51.67

Bill Barrett Corp (BBG)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 9 new highs and up 20.96% in the last month
• Relative Strength Index 65.22%
• Barchart computes a technical support level at 20.82
• Recently traded at 23.26 with a 50 day moving average of 20.61

Waste Connections (WCN)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 8 new highs and up 12.95% in the last month
• Relative Strength Index 73.90%
• Barchart computes a technical support level at 39.81
• Recently traded at 40.53 with a 50 day moving average of 37.07

Would you gamble on Bally?

While screening on Barchart for stocks having current upward momentum I can across Bally Technologies (BYI).  The stock looks like a turnaround situation.  35% of revenue comes from new gaming equipment and at the present time new casinos aren't coming on line.  In a few years as the economy recovers that's where the turnaround may set in.  The rest of the revenue stream is from gaming operations and gaming related software and systems, these revenue streams look more stable.  Price momentum is why I'm looking at this issue.

Bally Technologies (BYI) formerly Alliance Gaming Corp. is a diversified, worldwide gaming company that designs, manufactures and distributes gaming machines and computerized monitoring systems for gaming machines, owns and manages a significant installed base of gaming machines, owns and operates casinos and in Germany, is a full-service supplier of wall-mounted gaming machines and amusement games. The company has achieved a leading market position for each of its business units.

Factors to consider:

Technical Factors:

• 100% Barchart short term technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 5.13% in the last month
• Relative Strength Index 71.47% and rising
• Trades around 40.51 with a 50 day moving average of 37.34

Fundamental Factors:

• 16 Wall Street brokerages are following this issue
• Brokerage analysts have issued 6 strong buy, 4 buy, 8 hold and an under perform recommendation for their clients
• Sales are expected to decrease by 3.90% this year but increase by 11.30% next year
• Earnings should decrease by 16.10% this year but turn around and increase by 37.20% next year and 15.00% annually for the next 5 years
• Hopefully, this turn around in the direction of revenue and earnings will also equate to an increase in price

General Investor Sentiment:

• Wide and positive measured by opinions expressed on Motley Fool where 228 readers have an opinion on this issue
• The CAPS members vote 128 to 46 for this stock to beat the market
• The more experienced All Stars vote 38 to 16 for the same result

Summary:  This issue is not a sure thing. All assumptions seem to imply that if the economy turns around new gambling locations will come on line and old ones may be remodeled and expanded.  If that happens they will need new equipment and Bally is positioned to provide that.

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs on  Barchart.com  in his daily blog -- Barchart Portfolio Blogs.