TALX Corp. provides employee self-service solutions using interactive Web, interactive voice response, computer telephony integration software and services to government agencies & Fortune 1000 companies. For the 6 months ended 9/00, revenues increased 20% to $20.3M. Net income from cont. ops. rose 63% to $2M. Results reflect increased number of employment records and related transaction volumes, increased margins, and higher interest income.

December 17, 2000

The TALX Corporation (TALX) is an application service provider (ASP) that designs and implements interactive communications solutions for human resources, payroll, and employee benefits. All of the company's services are delivered through the TALX ASP Center and use leading edge technologies such as interactive web and interactive voice response systems. Such technologies have kept the company ahead of the competition and has kept their stock price soaring. On November 11th, shareholders authorized the company's first stock split. The 3:2 split will be authorized for shareholders of record on December 8th, with a payable date of January 19, 2001. Even more exciting, shares may have just signaled that they're ready for additional gains by breaking out to new highs on Friday. This week's advance, which broke above a two-week consolidation range, came on strong volume (110 thousand shares traded) and made a new closing high at $38. We'll look for $38.25 (intraday high) to present our initial opposition. As far as support for the stock goes, the previous high of $33.81 should help to bolster support at $34. We are placing our stop just below support at $33.25, to protect against a meltdown. Look for buying opportunities if good volume (100 thousand shares or more) follows a sharp bounce from support or an advance through resistance.

Picked on December 17th @ $38.00
Change since picked 0.00
Stop Loss @ $33.25

January 11, 2000

On Wednesday, Apollo Group announced a 3:2 stock split. The split will be the company's sixth split since it began trading publicly in 1995 and will take effect on February 5th. Apollo Group Inc. has been providing higher education programs to working adults for over 25 years. In today’s session, the stock gradually drifted lower where it ended the day at $49.06. The trading volume was recorded at 958,000 shares, which is slightly below the three-month average of 1 million shares. It is not uncommon for a stock to undergo a post split-announcement dip and then rally into the split date. We will be watching for this to occur with this play. The technical perspective looks like this: support is now at the 10-dma at $48.94 and resistance is just above at the 5-dma at $50.00. Above that, look for $51 - $53 to also pose resistance. Watch for the split run to begin with strong volume of at least 1 million shares traded on a move through the 5-dma. We are keeping our stop at $48.00 to limit any losses in the event of some profit taking.

Picked on January 9th @ $52.38
Change since picked -3.32
Stop Loss @ $48.00

January 9, 2001

As the nation’s clear-cut leader in automated employment and salary verification services, TALX’s Work Number provides 66 million employment records and serves approximately 25% of the employed U.S. workforce. What’s more, the company announced today that Mortgage Technology Magazine named The Work Number website as one of the top Internet and real estate sites for mortgages services. On Tuesday, TALX shares eclipsed tough resistance at $40 and closed higher by $1.25, or 3.16%. Nevertheless, we do need to point out that volume came in fairly light at 56,700 shares, which could be implicating a near-term pullback. With this in mind, conservative traders may want to consider implementing a stop loss strategy to lock in current gains. However, should the stock muster heavier buying of at least 100,000 shares, then look for further resistance to come at the all time high of $42.13. Secondary opposition should be more rigid at $45 and $50. For support, look for the initial base to now come at $40, bolstered by previous highs. Just lower, stronger support should come at $38, braced by the 20-dma of $37.97. We’ll keep our stop below support at $33.25. Confirm entries off support with sharp bounces on good mid-day volume of 50,000 shares, prior to opening positions.

Picked on December 17th @ $38.00
Change since picked +2.75
Stop Loss @ $33.25

January 7, 2001

Based on the trend of outsourcing business processes, delivering automated business applications through ASP processes is growing in popularity and effectiveness. The Dataquest Group projects that the worldwide market for ASP services will grow to $22.7 billion in 2003, from last years $2.7 billion. That’s growth of over 700%! We also like TALX for its uncanny ability to outperform the broader technology market. On Friday, TALX shares continued to make gains, advancing through resistance at $38 and closing higher by 4.63%. The stock bounced off an intraday high of $39.88, which indicates to us that the next challenge is likely to come at $40. Should an advance above this level come on good volume of 100,000 shares or greater, look for potential entry points. Secondary resistance should follow at the all time high of $42.13. However, should TALX retrace prior to advancing, we’ll look for early support to come at $39, bolstered by the 5-dma and the 10-dma of $39.01 and $38.73, respectively. Just lower, stronger support should come at $38, strengthened by a recent low and the 15-dma of $38.31. Remember to confirm sharp bounces of either of these levels with good mid-day volume of 50,000 shares, before opening new positions. Keep firm stops set at $33.25 to protect on the downside.

Picked on December 17th @ $38.00
Change since picked +1.50
Stop Loss @ $33.25