NATI leverages commercial technologies, such as industry-standard computers and the Internet, to bring affordable, productive measurement and automation tools to engineers and scientists around the world. For the FY ended 12/31/00, revenues rose 24% to $410.1M. Net income before account. change rose 20% to $55.2M. Revenues reflectnew and upgraded products, and increased market acceptance. Earnings also reflect increased interest income.

February 8, 2001

National Instruments (NATI) develops and manufactures hundreds of integrated software and hardware products, which are used to replace and communicate with older, more traditional instrumentation. Strong management and heavy investments in R&D have produced a string of 24 years of double-digit sales growth for the company. Currently, the company has 50.57 millions shares outstanding and 180 million authorized, enough to split the stock 2:1. Moreover, the recent strength in the stock has pushed NATI shares above each of its previous split-levels, which positions this play as a good split candidate. In addition, the stock has just broken above previous highs and continues to climb on strong volume. For the day, shares gained $2.19 on heavy buying of 502,000 shares. This is more than double the three-month average of 234,400 shares and is a good indication that momentum players might already be accumulating the stock. Look for initial resistance to arise at the $60 mark. Down below, look for support in the $52 to $5 range. Time possible entries off an advance through today’s intra-day high of $55.25 when accompanied by strong mid-day volume of 115,000 shares.

Picked on February 8th @ $55.06
Change since picked 0.00
Stop Loss @ $50.50