Universal Technical (UTI) provides post-secondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle, and marine technicians in the United States. As of September 30, 2008, the company offered undergraduate degree, diploma, and certificate programs at 10 campuses in the United States, as well as manufacturer-specific advanced training programs at 19 training centers. It also provides training for other sectors, such as motor freight companies and other businesses that employ skilled technicians. The company was founded in 1965 and is headquartered in Phoenix, Arizona.

The company has improving fundamentals led by solid earnings growth. The latest earnings showed reported net income of $0.6 million for the fourth quarter ended Sept. 30, 2008, or 2 cents per diluted share, as compared to a net loss of $1.3 million, or 5 cents per diluted share, for the fourth quarter of the prior year. Net income for the year ended Sept. 30, 2008 was $8.2 million.

Universal recently announced that AAA (American Automobile Association) has named it as an Automotive Preferred Supplier. Through this new agreement, UTI will provide technical automotive training for AAA roadside service providers at its nine automotive campuses throughout the United States.

The stock is showing a potential Elliot Wave-4 buy, projecting gains into the $23.00 per share area by the end of March. Universal Technical does have an options market but can be thinly traded at times so a limit order needs to be used. The options currently extend through July of 2009 allowing the options strategist enough time to take advantage of the forecasted opportunity.

 

Figure 1: Daily Elliott Wave-4 Buy Pattern for Universal Technical
(Source: Profit Source)
click here for larger view

Happy Trading.


Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum