Jack Henry & Associates provides integrated computer systems for in-house and service bureau data processing to commercial banks and financial institutions. For the 6 months ended 12/31/00, revenues rose 62% to $157.7M. Net income from continuing operations rose 94% to $24.8M. Revenues reflect financial institutions taking delivery of products. Earnings reflect a shift in the sales mix to higher margin products.

March 18, 2001

Jack Henry & Associates, Inc. provides integrated computer systems to banks, credit unions, and other financial institutions. The stock hit an all-time high of $33.13 on December 28th. JKHY then sold off, falling to an intra-day low of $19.81 on January 23rd, one week after the January 17th earnings release. More recently, shares of JKHY have traded in the $23-$26 range following the execution of a 2:1 split on March 5th. The stock has also traced a double bottom formation with the 200-dma at $24.75 acting as the neckline. e believe that the post-split depression is wearing off and we are now looking for the stock to break out of its trading range. From a technical standpoint, JKHY has support at Friday’s intra-day low of $24 with stronger support at $23.73, the 20-dma. Resistance is Friday’s intra-day high of $25.38 and then the 100-dma at $26.27. Look for entry points on a bounce off of $24 or a move above $25.38 on volume greater than 250,000 shares by noon. We plan to set tight stops at $22.75 as downside protection.

Picked on March 18th @ $24.31
Change since picked +0.00
Stop Loss @ $22.75

March 20, 2001

Jack Henry & Associates traded to an intra-day high of $25.13 on Monday morning. However, the stock reversed directions later in the session. Shares of JKHY traded to an intra-day low of $22.75 on volume of 531,900 shares. We were stopped out at the intra-day low, so we are closing this play tonight.

Picked on March 18th @ $24.31
Profit/Loss = -1.56 (-6%) (Stopped Monday @ $22.75)
Best Profit = +0.82 (+3%)