Breakouts for Dec 23rd: Three current picks are revisited. The first pick, RHAT, last featured for November 22nd. Thursday's breakout came on strong earnings, and even survived some negative comments from Banc of America. Volume continued to excel on a supporting breakout in on-balance-volume and a MACD trigger 'buy'. The stock first featured to subscribers on July 5th and is almost 100% up on this play. It currently trades at 2004 resistance so some sideways action can be expected here. My price target is drawn from a projected move forward out of this base. Based on forward P/E projections the stock should trade around $35. The second pick, THOR, has been a regular star performer. The stock first featured on February 3rd when it traded at $11.65. Thursday's action was a low volume breakout from a broadening wedge, which followed some heavy volume buying in late November. All three technical indicators are mapping consolidations and there is some concern these could soon burn out - hence the raised stop price to protect the position. There has been no PR from the company since the middle of November so it is hard to see what is driving the rally at this stage. Based on forward P/E projections this stock could trade at double where it is now. I am looking for a move to $30 whole number resistance. The stock still rides an ascending triple top breakout from October 26th which has exceeded its point-n-figure target of $21. The third pick, AUDC, first featured as a breakout on September 8th 2004, but the current play is part of a subscriber pick from December 16th. The break of $11.65 resistance on rising technical strength and volume favors a continuation of a move to test $12.10 resistance. Key resistance lurks at $17 from the start of 2005. Thursday's action marked a 'golden cross' in the 50-day and 200-day MA; a long term bullish signal. For now I have set 2005 highs as a price target but this could follow through to $22. Based on projected P/E values this could trade at $15.82.

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For those who prefer to set their own price targets the table opposite represents the frequency for a given % return (taken from maximum highs) assuming a fill at at the stated "Buy" price on the open (i.e. the prior days close). The return per trade from 5% risk is typical of what my subscribers can expect from their picks. The return per trade from 10% risk is what one can expect from my free stock picks. Returns will be higher on fills below my "Buy" price

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96% of featured stocks turn a profit greather than or equal to breakeven, assuming a fill at the prior day's close. 91% of featured stocks return a profit of 1% or more assuming a fill at the prior's day close; 78% of picks return a profit of 2% or more. 92% of featured plays are completed within a 6-month time frame. Stocks which are still in play beyond 6-months are usually experiencing strong rallies. Returns will be higher on fills below my "Buy" price

Buy	Stop	Target	Support	Resistance	Risk:Reward	IBD
$11.75	$11.18	$16.88	$11.65	$12.10	9.0	C

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"IBD" refers to Investors Business Daily

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