I can't tell you how much I am kicking myself for not paying close enough attention to this stock's price movement over the last couple of days. I have had this flagged for quite a while. I first bought BTJ in February and logged a 93% gain before selling, thinking that the stock had gotten a little ahead of itself.
It became #1 on the IBD list after I bought it and a lot of momentum players piled in. I felt that at $40, the company had found its fair value and sold. However, a couple of quarters have past and BTJ just keeps chugging along, having bought Real Time Systems (can be immediately accretive to earnings), and having providing great earnings results.
This is a small cap company that has had a fairly hot breakthrough in the development of marine geophysical equipment. They have developed a seismic air gun for deep water oil and gas E&P applications (that is part of a comprehensive digital seismic system called “Seismic Source Monitoring System”) that is causing the company to demonstrate outstanding growth.
They also have an industrial products group that produces low margin ( but profitable) products as well that seems like a kind of self sufficient “bolt on” operation.
The sell-off since July, provided me with another opportunity to own this stock. I expected support at $33.50 and was planning to buy then, but that support didn't hold, so I didn't buy. When I checked in the next day, BTJ was able to retake the $33.50 point and I was looking for it to clear the 200-day moving average. Well, it did that yesterday and then some. This morning, after kicking myself for missing a lot of the move, I nibbled a little around $38.00.
I am looking at adding a position, so will now buy on profit taking dips. I do think that BTJ can retest it's momentum driven highs again in the next year. It is a fantastic way to play the pin action in the energy sector.
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