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Is Symbol Tech Ready to Break Out?

The chart manaics at The Bull Trader catch the bullish cup & handle forming on Symbol Tech (SBL).

We recently mentioned this stock in a story we did on Walmart's (WMT) inventory management protocols, as you may recall:

...The pure play on RFID is Symbol Technologies, which makes the cutting edge technology that enables companies like Walmart to maximize value from its customer relationship management systems.

As other retailers and governmental entities allocate more of their budgets to RFID, we believe that shares of Symbol will enjoy considerable upside. While the stock is richly valued, Symbol's debt-free strong balance sheet and formidable product line may help resuscitate the company out of the coma its former, terribly shoddy management put it in. If Wall Street is overdiscounting the restructuring risks -- and cash flow remains robust -- we see Symbol's products becoming more ubiquitous and its shares breaking $15 in 2006.

We rarely argue with charts, because when we do, we end up getting whooped.

Symbol Tech could be a strong buy -- we really don't like the fact that its current interim CEO has zero experience in the data collection systems industry (he spent 30 years in financial services).

posted by Catablast! Media Group @ 7:25 PM