CECO - Career Education Corp $66.63 +3.38 (+1.38 this week)

Career Education attempts to fill the post-secondary education void created by major universities. With its 27 campuses across 15 states, the Company provides courses and training that enable students to graduate with Bachelor and Associate degrees in Visual Communication and Design Technologies, Information Technology, Business Studies and Culinary Arts. These fields are some of the fastest growing in today's economy and graduates of these studies are in extremely high demand. As long as this dynamic continues, the future appears bright for CECO. This is a split-run play for us. On August 1st the Company announced its first 2:1 split which will be payable on August 25th. On the same day, the Company reported a solid quarter. The second quarter profits were $0.26, which exceeded the estimates by 6 cents. The spike up today was a break from a small base that appears to have successfully consolidated the last rally. OBV has been very strong throughout the rally. Additionally, the MACD is also in bullish territory. One technical indicator that does concern us a little bit is the RSI, which is firmly in overbought territory. With that said, the RSI has been indicating an overbought condition for three months now and the stock has not suffered any major pull backs. This is clearly a momentum play, so be cautious if the stock drops below any previous day's low. Our initial stop will be $62.88 and we will definitely exit this position before the split is paid out.

Picked on August 17th @ $66.63 Change since picked +0.00