Steady Return Stock - Q

The steady return stock of the day is Quest Communications International Inc. (Q), the Denver based an online content service provider. The booming online business is telecommunication company. For the past 52 weeks the stock has been doing pretty well, rising from $4 per share last September to $8.88 on Friday, gaining 100% for the year. Looking at the detail from the technical and financial side, let's see if this is still a stock worth investing:

Technical
The 52 weeks chart shows this is a steady return stocks. First of all since last November the 50 day and 200 day moving average have been rising steadily. The 50 day moving average rose rapidly from last November to January of this year and since has stayed relatively close to 200 day moving average. In addition the stock staying very close to 50 day moving average during the same persiod so we can confirm this is a steady growing stock.

Financial
The revenue in 2005 is very similiar to the previous year and may stay the same in 2006. However net loss had dramatically reduced from $1.79 billion in 2004 to $779 million in 2005. And based on the earning report for the first two quarters of this year the stock may even see net income for 2006, a very positive sign.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(Telecommunication): 3.5
2. Technical: 5
3. Financial: 4
Overall Rating: A-