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 9 months ended 3/01, revenues rose 6% to $1.51B. Net income rose 23% to $97.7M. Revenues benefited from acquisitions and growth in new business bookings. Net income also reflects improved operating efficiencies and lower interest expense.

April 26, 2001

It is hard to believe that there is a stock out there with "computer" in its name that is driving to new highs. Nevertheless, ACS which provides numerous information technology services to the commercial sector as well as the Federal Government is enjoying an excellent share price rally. ACS has been on a tear since it announced solid profits of $0.64 a share last Friday. The 27% increase in earnings over the same quarter a year ago exceeded analysts estimates by 3 pennies. The company also assured investors that it will meet or exceed current estimates of $2.45 for the whole year, which ends June 30th. The solid prospects for ACS inspired JP Morgan to raise its rating to "Buy" from "Long Term Buy". The technical picture for ACS is solid. Last week, ACS found support at its 50-DMA just above $64.00 and has been moving nicely higher this week. The MACD is in positive territory and is also moving higher. Although the Money Flow is strong, it is trading sideways, the OBV is recovering nicely from its lows. A good entry point may provide itself tomorrow if ACS can trade above $70.75 accompanied by midday volume over 250,000 shares.

Picked on April 26th @ $69.13
Change since picked +0.00
Stop Loss $64.50

May 3, 2001

ACS was curiously ignored during this very volatile week in technology stocks. Although ACS did pull back a bit today, the good news is that the volume of 341,300 shares was noticeably light. This indicates that the selling was relatively tepid. Perhaps traders are holding on in the hopes that ACS is on the verge of announcing a split. The last split occurred in November of 1996 when the stock was trading at $57.50, which is decidedly below today's closing price. The stock is enjoying a nice long term uptrend and the MACD is indicating that this trend should continue. That said, the short term may see a bit of a pullback now that the stock has closed below its 5-DMA of $72.19. A weak opening tomorrow could result in the execution of our trailing stop of $71.00. However, ACS may issue a buy signal if it can reverse course and establish a new high tomorrow above $74.00 accompanied by midday volume exceeding 300,000 shares.

Picked on April 26th @ $69.34
Change since picked +2.66
Stop Loss $71.00

May 1, 2001

Investors have to be impressed with the way ACS avoided the epic bear market in technology stocks. Now, ACS is climbing even higher due to the renewed interest in the technology sector. That said, ACS did suffer from a bit of profit taking into the close following the establishment of a new intra-day high of $74.00. Additionally, today's volume of just under 1 million shares was fairly strong and much of the volume came near the close when the stock was pulling back. Consequently, we have raised our stop to $71.00, just in case today's late action is foretelling more profit taking to come. That said, the RSI still has room to move before indicating an overbought condition. A break above $74.00 tomorrow might offer momentum traders yet another good entry opportunity for quick profits. The longer term prospects for more price appreciation are encouraging, especially since the MACD is in a solid rally mode.

Picked on April 26th @ $69.13
Change since picked +3.80
Stop Loss $71.00

April 29, 2001

ACS is living proof that not every technology-based business is circling the drain. Perhaps ACS is benefiting from the seemingly unlimited resources of the Federal Government, which is an extremely important client of ACS's information technology services. Additionally, traders may be attracted to ACS because of the possibility that the company will announce a split soon. The company's last split occurred in November of 1996 when the stock was trading nearly $14.00 lower than Friday's closing price. ACS established a new intraday high of $72.48 on Friday. This is an encouraging sign that momentum traders are buying the stock in earnest. That said, we would have liked to see volume exceed 600,000 shares (volume came in at 542,000). A good entry point may present itself if ACS can trade above $72.50 on Monday and make this move with first hour volume exceeding 175,000 shares. In the event of a gap up of over $2.50, it might be wise to wait for a potential pullback before getting on board. Please make a note of the fact that we have raised our stop to $64.50 in an attempt to lock in profits. Picked on April 26th @ $69.13 Change since picked +2.26 Stop Loss $64.50