Kraz, RE: SPAZ. . . .
OTCBB:SPAZ
Here is a case of where a company had a great idea. . signed all the partnership agreements they could. . .put products on the market. . .had a good deal of critical acclaim. . . .money began to flow in, but they could not make a go of the business.
As SIII, AURL and others began offering inexpensive 3D chips of their own, the big consumer electonics companies started test marketing 3D products . . . it seemed like each new product coming out in the last 2 years has had a different 3D system on board. And Spatializer was suddenly the higher priced loser.
Despite the impressive consumer electonics partnerships. . . SPAZ only took in a few hundred thousand dollars revenue last quarter reported. However, I was impressed that they did not LOSE money.
Evidently word leaked out about their new collaboration with Matsushita on an inexpensive 3D chip, because the stock price and volume suddenly started to rise ahead of real news. Then last Wednesday, the news hit and the price began to really take off.
BB stocks can run for some time AFTER news, unlike big board stocks that sell off on news. But generally the fourth day [which is what today is] sees a pullback, consolidation or just plain sell-off. Three days of run in the BBs is typically the limit. After that, the odds of continuing are greatly reduced.
Make no mistake that this is big news. . . it now gives SPAZ a product just like AURL and SIII. . . .an inexpensive 3D chip. However, once again we are to wonder whether SPAZ can make any money out of this good fortune. They appear to have cut expenses back, which sure helps. . .but I cannot tell if they will continue to scale back to assure themselves profits or not.
Anyway, I would not be looking for the price to continue past 1 toward old highs. . .unless it gets more news right away, I would think we will probably see it consolidate here, then slowly decline back to .25 X .27 area . . where it has strong support. I don't see much downside from this level, and would consider buying here.
That flash of volume that sent it skyward has already dried up, according to charts. If they get immediate news, they have a chance to stay where they are. . . if not, I would think we have a top for this time.
Now if they start signing deals for their new chip, their name will get back in the news on a regular basis, which will attract new money. . .and give it some momentum. . . so there is yet more to look forward to on the news driven momentum side.
But should the company suddenly feel itself deserving of Nasdaq re-listing. . .they could decide an RS would be in order. . .I would stay close to the company on that issue. . .don't want to be surprised, holding heavy and long. I did not look up the company's stance on this issue at present.
All in all things look good long-term as the company jockeys for position once again as a 3D contender.
Rande Is
I have no position in SPAZ, but do in AURL and DIMD [soon to be acquired by SIII] |
