UTEK, Inc. develops, manufactures, and markets photolithography equipment designed to reduce the cost of manufacturing integrated circuits and thin-film heads for disk drives. For the FY ended 12/31/00, net sales rose 30% to $146.7M. Net income before acct. change totalled $9.7M, vs. a loss of $4.2M. Revenues reflect increased demand for the Company%s products in Asia Pacific and U.S. market. Earnings also reflect $16M in gain on sale of land.

February 1, 2001

Somebody forgot to tell this semiconductor equipment company about the industry slowdown. The stock is in a straight uptrend while many of it competitors are just now starting to recoup their year-end losses. UTEK's industry bucking trend is supported by some excellent fundamentals. Last week, UTEK reported profits of $0.25, which beat estimates by four pennies. The strong report was driven by new product releases during the quarter. UTEK is one of the very few momentum stock plays in the technology universe. Traders love to buy technology stocks, and if you want to buy one that is making new highs, you do not have to look any farther than UTEK. There is excellent trend line support just above $28.00. Today's low print of $30.38 should provide the initial support. Technical indicators look very good and confirm UTEK's momentum status. The MACD is trending higher and the OBV and Money Flow are really taking off. Today's new high was accompanied by volume of 1.2 million shares, which was 500,000 shares above the norm.

Picked on February 1st @ $32.88
Change since picked +0.00
Stop Loss @ $28.00

February 8, 2001

Somebody forgot to tell UTEK traders that technology stocks are supposed to be out of favor. The NASDAQ (COMPX) has dropped 93.96 points the past two days, while the shares of UTEK have gained $1.37. We believe that UTEK has a good chance to break through the $34.50 resistance established in September 1997, if the NASDAQ can just muster a couple of days of positive action. Trendline support for UTEK was tested again today, just above $31.00. New positions can probably be added as long as the stock stays above this support, especially if the overall NASDAQ is stable to higher. A breakout above $34.50 on good volume of over 500,000 by midday, could be a good entry point for momentum traders. Be careful, though, the MACD is starting to lose a little luster. Therefore, we will keep a close eye on this technical indicator to make sure it does not issue a sell signal. On the other hand, Money Flow and OBV continue to be outstanding, which indicates that the longer-term uptrend is still intact.

Picked on February 1st @ $32.88
Change since picked +0.87
Stop Loss @ $28.00

February 6, 2001

It was a ho-hum day for technology stocks ahead of Cisco Systems (Nasdaq:CSCO) earnings release. UTEK was pretty much in a holding pattern, although there was an early attempt at a rally. However, there simply was not enough conviction in the market to create a more substantial move. Cisco did disappoint by coming in a penny shy of estimates. However, the stock is only down slightly in after hours trading. If Cisco can avoid any significant damage to its stock on tomorrow's open, tech traders may breathe a collective sigh of relief. If this scenario occurs, we expect UTEK to be a strong performer tomorrow. A good entry point may be when UTEK crosses above today's high of $32.88 on volume of 300,000 in the first hour of trading. A move above $33.44 on volume over one million shares for the day would be very bullish and would likely draw the attention of momentum traders. UTEK possesses one of the strongest MACD's and Money Flows in the entire technology stock universe. If people want to buy technology, they should take a look at UTEK.

Picked on February 1st @ $32.88
Change since picked -0.50
Stop Loss @ $28.00

February 4, 2001

Ultratech Stepper was fantastically strong on Friday, as traders took profits in just about everything else semiconductor related. The PHLX Semiconductor Index (SOX.X) dropped 39.60 points or more than 5%, to close at 687.80. In the meantime, UTEK managed to stay within striking distance of its 1997 high of $34.50. A move above this resistance on good intraday volume of 750,000 shares may prove to be an excellent entry point. Otherwise, if technology stocks continue to digest their January gains in the early going this week, we may be better off waiting a day or two to pick up a more favorable price. The RSI is telling us that UTEK is overbought in the short term. The other technical indicators remain outstanding. The MACD, OBV and Money Flow are all strong since money continues to flow into UTEK. A pullback to just above $30.50, which is the 10-DMA, may provide another good next entry point.

Picked on February 1st @ $32.88
Change since picked +0.12
Stop Loss @ $28.00