Dave, you've made a very good point on your last post. I was furious with Checkmate's management, and I'm furious also at Ault's for their avoidance at being frank and honest with their shareholders.
"Fool me once, shame on you; fool me twice, shame on me."
That's the lesson I learned after CMEL's unexplained weakness(and its subsequent drop), and it's incredible that it has once again materialized through AULT. I am angry for the shareholders, and all I can do is to ask them to use this experience as a reason to understand what the charts are saying on occasion when things are not going "as they should."
Barring any takeover speculation, I see Ault's chart continuing to weaken and/or stay flat, with support coming in at the high 6's--so I expect this to drift until it hits that level. With the "technical damage" done to the chart, I don't expect this to trigger any buy signals for at least 2-3 months(on a weekly basis), meaning that this stock will be a technically(visually) unattractive for about the rest of the year.
The week's developments have given Ault a second strike: Strike one was missing last quarter's earnings estimates, and strike two was the earnings shortfall pre-announcement. In my book, management's outright lie to you has given it a third strike, but this is personal--I highly value management integrity, and it is disappointing to see Ault's fail in this regard.
Good luck,
Rainier
PS. As for what to do next with the stock, I believe that in the (much) longer run, Ault will be able to get back on its feet once more, hopefully to the greater benefit of its shareholders. Until then, there will be opportunity costs to holding a "technically weak" stock like this. |
