Trade: Sold DRS Bought RIMG

DRS was my biggest holding. It seems to be in the middle of a breakdown, although the trendlines are still holding up. I sold 50 shares @38.23 out of 200 that I have. It has found some support at the trendline and the 2nd Fibonacci retracement level from it. THere have also been some defense cuts announced and that could affect defense companies even though I think DRS earnings will hold up reasonably well. I plan to sell the rest of the shares on up days or if it breaches it's trendline.

I have also bought 50 shares of RIMG @16.09 which showed up on my volume surge screen. It is a micro cap company with only 9 million outstanding shares. Institutional ownership is at 50% with some good names like Royce and Kern having big stakes. The company definitely seems undervalued right now compared to it's growth rate. Also it has a strong balance sheet with about $5 in cash/share. Technically the stock is coming out of a consolidation and has had some big volume days to break out of a key resistance level at 15.00 I expect to hold this for the mid-long term as long as earnings growth continues.


DRS chart