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Linkedin: Professional profits


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by Leo Fasciocco, editor Ticker Tape Digest

Online professional network operator Linkedin (LNKD) recently moved above its technical breakout point of $108.53. We now target a move to $138.

The company reported net for the first quarter jumped to 15 cents a share from 6 cents a year ago. The 15 cents topped the consensus estimate of 9 cents a share.

LNKD came public back in May of 2011. The stock soared to its all-time high of $122.69. The stock later fell to a low of $55.98 in November of 2011. It has since staged a strong and steady rally. The stock is now in an up trend long-term.   


The recent breakout comes with a gap move to the upside with a big increase in volume. That is very bullish showing strong demand for the stock.

The stock's momentum indicator has been mostly bullish for the past 5 months. That is impressive. The accumulation - distribution line is in a strong up trend. That shows there is consistent and steady buying in the stock. That is bullish.

This year, analysts forecast a 72% jump in net to 22 cents a share from 13 cents a year ago. The stock sells with a price-earnings ratio of  531. That is extremely high. So, one needs to be very watchful of the stock.

Going out to 2013, profits are projected to climb 142% to 54 cents a share from the anticipated 22 cents this year. LNKD is a stock most suitable for aggressive investors due to its high p/e ratio.

Learn more about this financial newsletter at Leo Fasciocco's Ticker Tape Digest.


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