ACS provides a full range of information technology services including business process outsourcing, technology outsourcing, and professional services to the commercial sector and federal government. For the 6 months ended 12/31/00, revenues rose 6% to $979.5M. Net income rose 22% to $62.5M. Revenues benefitted from acquisitions and growth in technology outsourcing services. Earnings also reflect a gain on the sale of a minority interest.

January 28, 2001

After building a base for the past three months, Affiliated Computer Services just broke out of an inverse head and shoulders formation, notching a new 52-week high on strong volume. The company provides business process outsourcing, systems integration services and technology outsourcing services to commercial and government clients. The stock has had a great run over the last year, having risen from a 52-week low of $31 on March 8th to an all-time high of $63.13 on Friday. The company announced solid earnings on Thursday morning and we are now looking for a split announcement out of the next BoD meeting, expected on February 1st. The company already has enough shares for a split, with 500 million shares authorized and 50 million shares outstanding and the stock price is currently trading at historic split-levels. Going forward, support is the January 11th intra-day high of $62, with additional support at $60.40, the 5-dma. Resistance may come in at $63.50 or $65. Traders may consider entry pints on a bounce off of $62 or a move above $63.50 on volume greater than 700,000 shares by midday. We are setting our stop at $58 to guard against a reversal.

Picked on January 28th @ $62.94
Change since picked +0.00
Stop Loss @ $58.00

February 8, 2001

Affiliated Computer Services, a leading provider of information technology and business process outsourcing solutions, is starting to break out after seven sessions of sideways trading. On Thursday, shares of ACS traded to an all-time high of $67.75 on the heels of a strong earnings report from Electronic Data Systems (EDS). Unfortunately, the stock could not hold onto the gains, as the market fell into negative territory. On the technical side, ACS is building upward momentum, hitting three consecutive all-time highs on above-average volume. Support remains steady at the 5-dma at $65.85, with stronger support at $64.72, the 10-dma. Resistance is Wednesday’s intra-day high of $66.65 and then the all-time high of $67.75. Traders may consider starting new plays on a bounce off of $65.85 or a move above $66.65 on volume greater than 200,000 shares by midday. We have moved our stops up to $64 to lock in profits.

Picked on January 28th @ $62.94
Change since picked +3.16
Stop Loss @ $64.00

February 6, 2001

Information technology and business process service provider Affiliated Computer Services tested support at the 10-dma on Monday morning. ACS hit an intra-day low of $63 on volume of 212,000 shares. The stock recovered late in the day and it continued to rally on Tuesday. Shares of ACS traded to an all-time high of $65.80 on 406,000 shares following a deal with Washington Post Newsweek Interactive to deliver breaking news and political news summaries from washingtonpost.com using ACS' IQExpress.com as a companion desktop system. Going forward, support is the 5-dma at $64.53 with additional support at the 10-dma, now up to $63.50. Resistance is Tuesday’s intra-day high of $65.80 and then possibly $67. Traders should be looking for entry points on a bounce off of $64.53 or a move above $65.80 on volume of at least 200,000 shares by noon. Our stops remain at $58 as downside protection.

Picked on January 28th @ $62.94
Change since picked +2.66
Stop Loss @ $58.00

February 4, 2001

Affiliated Computer Services, a leading provider of outsourced information technology and business process services, attempted to rally on Friday morning. The stock hit an all-time high of $65.75 before reversing direction to close below the 5-dma at $63.80 on volume of 278,000 shares. ASC appears to be consolidating in the $63-$66 range as the market searches for direction. The company held its BoD meeting on Thursday and we are looking for a split announcement in the near future. ACS has enough shares for a split, with 500 million shares authorized and 50 million shares outstanding. Also the stock is currently trading within historic split range. However, if we do not get a split next week, we may have to wait until the April earnings release. In the meantime, support is the 10-dma at $62.37 with stronger support at 20-dma, currently at $60.18. Resistance has moved down to the 5-dma at $64.33 and then the all-time high of $65.75. A bounce off of $62.37 or a move above $64.33 on midday volume greater than 200,000 shares may be possible entry points. We are leaving our stops at $58 to limit potential losses.

Picked on January 28th @ $62.94
Change since picked +0.86
Stop Loss @ $58.00