RE: RMCI
Here's my read on it. This was a momentum stock from last summer, which really broke it's momentum last July-Aug. It's never been the same. 50 Day MA was up until last July-Aug, has been trending down since.
Last year's growth rate was 16%. In prior years, it had been higher.
Book = 6.53
Float = 3.9M of 6.8M
Earnings per share was est. to be .39-.41. News that tanked the stock was that they would come in at .10-.15 due to restructuring charge. Also missed last qtr by 5%
Earnings est. for yr. were projected to be 1.65; so with news release, should be 1.35.
This co. traded at about 10x prior to Fri. Industry avg. is 17.8x.
Using 10x on new estimates, fair value should be about $13.
Volume on Fri. was only ~1.3M, so there's still a lot of the float out there. Could be a good sign -- people hanging on, or bad -- more selling to come.
Trades on Friday showed stable price from early am on, slight uptick at close.
My TA people don't like dcb's on downtrending 50 Day MA. They like surprises, surprises tend to bounce higher. VRLK was a downtrending 50 MA, and it only gave a little bounce.
I have asked for TA for resistence levels, I don't know if I'll get it.
Best regards,
P. Webster
Kenneth, is your email that as on your profile? You may be a target. |
