TALX Corp. provides employee self-service solutions using interactive Web, interactive voice response, computer telephony integration software and services to government agencies & Fortune 1000 companies. For the 6 months ended 9/00, revenues increased 20% to $20.3M. Net income from cont. ops. rose 63% to $2M. Results reflect increased number of employment records and related transaction volumes, increased margins, and higher interest income.

December 17, 2000

The TALX Corporation (TALX) is an application service provider (ASP) that designs and implements interactive communications solutions for human resources, payroll, and employee benefits. All of the company's services are delivered through the TALX ASP Center and use leading edge technologies such as interactive web and interactive voice response systems. Such technologies have kept the company ahead of the competition and has kept their stock price soaring. On November 11th, shareholders authorized the company's first stock split. The 3:2 split will be authorized for shareholders of record on December 8th, with a payable date of January 19, 2001. Even more exciting, shares may have just signaled that they're ready for additional gains by breaking out to new highs on Friday. This week's advance, which broke above a two-week consolidation range, came on strong volume (110 thousand shares traded) and made a new closing high at $38. We'll look for $38.25 (intraday high) to present our initial opposition. As far as support for the stock goes, the previous high of $33.81 should help to bolster support at $34. We are placing our stop just below support at $33.25, to protect against a meltdown. Look for buying opportunities if good volume (100 thousand shares or more) follows a sharp bounce from support or an advance through resistance.

Picked on December 17th @ $38.00
Change since picked 0.00
Stop Loss @ $33.25

December 21, 2000

Shares of TALX were given a boost today when the company announced that it had signed 1.1 million new employee records to its Work Number service. The new clients include established firms like, Radio Shack, Raytheon, and Georgia-Pacific Corporation. The news release was good news for investors who rewarded the stock with a $2.63 advance. Shares climbed as high as $40 on the day, making an all time new high, before closing just lower at $38.56. Strong volume of 168,000 shares accompanied the advance and could indicate that more gains are in store for tomorrow. With that in mind, we’ll look for the initial test to come at the all time high of $40. If shares can advance above this level, then look for momentum players to push the stock even higher. More conservative investors may want to wait for the stock to close above $40, confirming a breakout, prior to opening positions. The $45 and $50 marks will present the upper resistance levels. However, should TALX retrace prior to advancing, we’ll expect the 5-dma of $37.67 to bolster established support at the $38 mark. Secondary support should arise at the 10-dma of $35.85 and help strength the base at $36. Just lower, the $35 mark has been confirmed as good support (previous lows), but may be the final base ahead of our stop at $33.25. Consider using strength in the NASDAQ Composite Index (COMPX) to help confirm your buy decisions.

Picked on December 17th @ $38.00
Change since picked +0.56
Stop Loss @ $33.25

December 19, 2000

Through its interactive Web and voice response solutions, TALX has developed a cutting-edge technology that enables employee’s to input information directly into a central computer via phone or Internet. As for trading today, TALX shares did a good job holding on to gains made last week despite a very volatile day for technology stocks. TALX made an early attempt at the all-time high of $39.19 before falling lower late in the day. With that said, we’ll look for initial resistance to come at the all-time high of $39.19. Just higher, the $40 mark should be followed by a tougher challenge at $45. If strong volume of 100,000 shares or better can accompany TALX through resistance, then look for low risk entry points. For support, we'll expect the 5-dma of $37.33 to help bolster the $37 mark with stronger secondary support at $35. If prices re-touch this level and reverse sharply on good volume, then an opportunity for a low-priced entry may exist. Set stops just below this level at $33.25.

Picked on December 17th @ $38.00
Change since picked +0.13
Stop Loss @ $33.25