Long Position on EGOV @ $19.00 on 12/14/2015 (Fundamentals)

NIC Inc. (EGOV) provides eGovernment services that enable governments to use the Internet to provide various services to businesses and citizens in the United States.

Its Outsourced Portals business enters into long-term contracts with state and local governments to design, build, and operate Internet-based enterprise-wide portals on their behalf. These portals consist of Websites and applications that enable businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. This business also provides consulting, application development, and portal management services to governments.

The company’s Software & Services business provides software development and services to state and local governments, as well as federal agencies. It develops and manages the pre-employment screening program for motor carriers using a self-funded and transaction-based business model. 

Shares are heading higher in an upward trading channel (shown in blue.) The 100-day moving average for the stock has proven to be a support level for the stock price (green line). We expect shares to find support around the $19 level and head higher from that level.

52-Weeks Trading Range: $15.16 - 20.90

Entry Point: $19.00

Stop Loss: $18.05

Target Price: $20.90

Updates

1/27/2016 12:27:26 PM

EGOV closed at $19.10

Position closed on 1/27/2016 at price of $19.10 with a 0.53% gain in 44 days.

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