levy,
I also am taking a long term commitment approach to this stock. I think that those of us who are truly long GNET can accept the fluctuations in price. Conversely, TA is a very valuable tool when properly applied. TA is not necessarily predictive in the near term, especially when something changes in the fundamental analysis. An announcement of a huge deal or blowout earnings will "override" a technically "bad" chart. All the first tier nets, of which I am including now GNET, show similar chart patterns. The notable difference is the somewhat greater volatility and resilience that GNET has shown when compared to say YHOO or AOL. They have both since failed to near the highs that they experienced in April, whereas GNET has nearly achieved a rebound.
NotN does point out the fact that there may be a double top forming if GNET does not take out the old highs. This does not mean that it cannot be done. A double top does not signal that the stock will inevitably head down, it merely signals an alert to the technician. Fortunately, we are approaching earnings release, for which Russell has said he felt "comfortable" with estimates. It is in this situation that TA may fail.
As I have stated previously, this would appear to be only the start of a long journey for Russell, PA, GNET and the other 100 longs on the list<g>. NotN may play this any way he chooses but GNET is the only stock that I have held like this because I see everything needed for a tremendous success story....brains, capital, business model. I stay because I believe and I believe because I stay informed. Today's closing price, 80 1/4, is not destination but the beginning.
HeatherN |
