ILOG - (10/23/02 - $4.15)

     Above is a weekly log chart for ILOG, a provider of enterprise software and services.  You can see that the 2002 downtrend has just been broken after touching the 1997 lows.  Though the longer term trend has not been broken we feel comfortable buying here just above support and taking into consideration that the stock trades below 1x sales.  Tangible book value is $2.13 per share and cash and equivalents is $30.7 million or $1.84 per share.  On October 22, 2002 ILOG reported $19 million in revenues with a net loss of 6 cents or $1 million.  Revenues were $17.8 million for the prior year quarter with a net loss of 7 cents.  Be aware that this stock pick is an ADR and trades thinly. They are financially strong, undervalued, and the chart points to a potential multi- year double bottom. 
 

Update 5/11/03 : Closed at $6.70 today.  Recommend selling for a 62% GAIN

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