Count me among the quiet accumulators.
Why?
After recent run to $1.50 range (say, 2 weeks ago), stock had remarkable support at mid-$1.30s, from which it has now progressed steadily, often closing near the high of the day (good technical indicator);
I've always thought the Lark Allen move was the strongest "insider buying" you could ask for--opportunities must have been piling up at his door, yet he opts for a company that in mid-December frankly admitted its burn rate could leave it penniless by February, 1998. This problem has since been solved by licensing revenues and the private placement;
I also think it's significant that WAVX sees no further compelling need to attend every internet conference that comes along. Attention is likely now focused on OEMs coming to WAVX, as well as lining up content-providers. This stock has a tendency to rally ahead of news, so these indirect signals may very well correlate with there being imminent announcements;
Big issue is whether we see resistance at $2.00. If the news is especially noteworthy, this becomes moot because strong fundamental factors tend to trump technical trends. Also, if the stock goes through $2.00 and holds (in the absence of news), I've got to think this is very strong on the TA side. Any TA wizards care to comment?
In sum, don't fold.
Pure Folder |
