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

February 15, 2001

NATI’s development of reusable hardware and software modules enables a company to re-use and re-configure its instrument systems. As for our play, the stock continues to hold ground above its trendline and remains near all time high levels. Additionally, the OBV indicator continues to make higher highs and suggests to us that higher levels in the stock may be headed our way. So, should the stock begin to rise, we’ll look for an initial challenge to come at the $55 mark. Another barrier will come at last week’s high of $57.56. An ascent above this level, when accompanied by good daily volume of at least 250,000, will present a potential entry spots. On the other hand, retracements to lower levels will likely find support at the 10-dma of $53.55. Look to time entries off either of these levels if mid-day volume of 115,000 shares can accompany a reversal. Continue to keep firm stops at $50.50 to guard against further declines.

Picked on February 8th @ $55.06
Change since picked –0.75
Stop Loss @ $50.50

February 13, 2001

NATI enables businesses to increase the productivity of its workforce through easy-to-integrate software and hardware solutions. On Tuesday, NATI shares remained mostly flat on lackluster volume of 208,000 shares. However, the stock did hold above previous highs and found support near $53, so we’re hoping for shares to generate a sharp reversal from current levels. Should this set-up unfold, we can expect for initial resistance to come at the $55 mark. Further opposition will likely follow at the all-time high of $57.56. Keep in mind that the 20-dma might be the last line of defense ahead of our stop at $50.50. So use good judgment when timing entries off support at $53 and remember to confirm your buys with mid-day volume of 115,000 shares by noon.

Picked on February 8th @ $55.06
Change since picked –1.00
Stop Loss @ $50.50

February 11, 2001

The PC works 1,000 times faster than it did 10 years ago and as a result, users continue to look for new ways to unleash this processing power. As capacity of the PC grows, NATI's virtual instrumentation software enables users to take full advantage of this speed through the integration of automated solutions. Closing the week with a sharp rally higher, NATI shares made an attempt at all time high today and hit $57.56 on an intraday basis, before lower closing at $56.13. Excellent volume of 543,400 shares followed the advance and indicates that higher prices could still in store. In addition, the MACD just issued a buy signal and OBV just notched a new high. For new highs to be conquered, shares will first need to exceed today’s intraday high. Secondary resistance at the all time high of $59.50 will also need to be overtaken. Advances through each of these levels will present us with good entry points should the stock break sharply above each of these levels on volume of at least 250,000 shares. Potential entry points will also arise when NATI bounces off support at $55 and $53, braced by the 5-dma of $53.35. Lower support should be much stronger at the 20-dma of $51.29, but bear in mind that our stop resides just lower at $50.50. Use good mid-day volume of 115,000 shares to confirm entries off these levels. With earnings not until next month, we’ll use support and resistance to guide our buys/sells.

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