Marcos...
I can understand trading on the basis of those feelings,
but I'd like to express my view on the subject...
I think one of the greatest myths in the marketplace is that
a share consolidation will negatively impact a stock's shareprice,
i.e., lower the shareprice. Of all the charts that I've perused
over the years, I've observed that most companies tend to
make a consolidation of their shares when their stock is trending
down. Given the laws of inertia, these stocks generally continue
to drift down. I think investors mistakeningly apply a cause-effect
relationship and assume that the consolidation was the reason for
the stock going lower. What is different about Tecsyn is that the
consolidation would supposedly take place during an uptrend in
the action of the stock. All things being equal (and they usually
are not...which I'll speak to in a second) the consolidation
should have no impact on TSN and the price should continue to
trend higher. Yes, TSN has had a nice run, but to suggest that
a rollback will "kill it" seems like a statement of your feelings
about having experienced consolidations in stocks that were in
established downtrends (am I wrong?).
As for the lack of a price increase today...I'm quite confident
in saying that TSN was simply overshadowed by a generally weak
market. TSN does have the fundamental story to justify an
increasingly larger valuation. I think what we're seeing is simply
technical interference, not a fundamental breakdown. To me what
is comforting about TSN is this:
1. TSN is still in a very picturesque uptrend, its trendline
has not been violated.
2. I believe that a lot of the general market anxiety is due
to the Asian markets. The North American companies that
are bound to be affected by this are the multinationals
and exporters to Asia. TSN, on the other hand, seems to
do most (all?) of their business in North America. Bear
with me on this point...fundamentals are not my strong
suit.
Anyways, for whoever's in the mood please add your 0.02.
Marcos, best of luck in whatever you trade next.
WN |
