JDA Software Provides Supply-Chain Control

JDA Software Group JDAS, a small-cap based in Scottsdale, Ariz., gapped out of a base over 16.35 on April 16.

The stock pulled back to within 0.31 of its 10-week moving average in the week ended May 25. Volume slowed but picked up again as the stock climbed back up, just as you'd want to see.

The last three weeks, JDA has been forming a new, shallow consolidation with tight price action.

JDA provides supply-chain software, mostly to retailers and their suppliers. Its programs help companies manage inventory and coordinate business planning up and down the supply chain.

They also support e-commerce and forecasting.

Its earnings growth is on the upswing. From negative year-ago comparisons in Q1 and Q2 of 2006, JDA Software notched gains of 18%, 33% and 300% the past three quarters.

Analysts' consensus estimate for the current quarter is for a 178% improvement.

Sales growth, which also had been shrinking last year, has picked up in a range of 60% and 90% in the past three quarters.

JDA's margins are climbing. After-tax margin in the latest quarter came in at 10.3% -- the highest in at least 11 quarters.