I checked out the raging bull thread. Some exaggeration ($330 mill vs. $33 mill) and otherwise another "support group". I think its good to support one's stock but not at the expense of ignoring possible problems.
Unfortunately, I have to agree with Mr. Margraf. The trend is your friend; don't fight the tape ...etc. If that's not a downward trendline I don't know what is. The entire rise in February was based purely on the publicity of the home show - not on fundamentals. As a result, we see the typical fall off. Prior to the home show, support was around $0.80. With the summer doldrums upon us kicking the #$% out of most Canadian small caps, unless there is some major promotion again (perhaps a major analyst report), I would suggest it is most likely that the stock price will fall back to this level over the coming two months (No, I'm not shorting, but now that I think of it I think this is a good candidate). The market depth supports this and shows far more ask volume than bid volume(see below). For anyone interested in the perspective of someone thinking about buying this stock in the long-run, I do not think its a good time to buy. Rather, I will be watching this one over the summer. IF the company starts to come close to meeting its targets and IF these JV agreements are completed (and not just at the LOI stage) and supported with substantial investments and IF they have or bring on appropriate management, I will likely start to build a position but I expect at lower prices. In the mean time I will continue to accumulate more information and follow the discussion.
Market depth 6/23/99
Bid
price #shares #orders
0.91 4,000 1
0.95 500 1
1.00 11,500 3
1.01 2,500 1
1.05 200 1
Ask
1.08 24,100 2
1.10 50,000 1
1.15 15,600 2
1.19 2,000 1
1.20 8,500
Best regards,
Rob |
