Linked In (LNKD) Breaks Out

Pardon the late notice, but it may not be too late to hop in on Linked In (LNKD). Linked In broke out Wednesday, finishing just above the buy point that the arrow points to. The pattern is a cup with handle and the buy point is $113.10.

LNKD followed up the break out Thursday just how you want to see a strong stock, but adding to the move in big fashion. It’s technically extended from the buy point, up 5.3%, but it may well pull back some.

In strong markets, leading stocks that break out often don’t give you a second chance to buy right at the buy point. This begs the question, is this a strong market? That’s a tough question to answer. It has certainly tightened its trading from the choppiness we saw earlier in the summer which made buying break outs difficult.

The tenor has changed, however, and opportunities are picking up, and the market has strengthened. During this rally, which began about a month ago, I have been buying my stocks in stages, dipping my toe it near the buy point and adding to it if it shows progress.

Given Thursday’s fantastic market action, perhaps buying some LNKD at a slight discount from Thursday’s action, if it will offer it, isn’t a bad idea. I may ad to my position if LNKD pulls back some in the morning.

LNKD has solid fundamentals with some recent triple digit quarterly earnings growth and projected growth in 2012 of 80% and over 100% for 2013. This is the kind of growth you should look for. Sales are surging also.

It’s the opposite of Facebook (FB), in my opinion, in that it has a more diverse, and growing, business model, relying on a three-pronged sales strategy. If the economy picks up even more, LNKD should benefit even more, a great scenario.