tool dude,
Look what I got in my Emails for the weekend. Someone is plugging some of our favorites: SNMM (as a long!?), WAVX (short), etc. according to their scoring system SNMM is almost a "buying opportunity"!!
If SNMM take's a pop on Monday, we'll know part of the reason. Perhaps someone wants to sell into a little strength?
.................................
US Over the Counter Bulletin Board
Starnet Communications (SNMM)
Perspectives Score - 64
Rating - Optimistic
Reference: starnet.ca
- By now, we all know the story of how SNMM had their offices raided by
Canadian police in Vancouver after an 18 month investigation into illegal
pornography and use of the proceeds from crime. That hammered the stock
lower two weeks ago, and this was the week when I thought we could see SNMM
rebound a little bit as emotion often makes the market push things a little
farther than it needs to go (this often happens on the upside, as well as
the downside). The stock did rebound, moving from a little above a $4 close
last week to close this week at $5 11/16. That is a far cry from the $14
that the stock was at before the news came out, but a decent gain none the
less. SNMM still looks relatively oversold, and I think we could see it
make more of a move to the upside from here. However, recognize there is a
good deal of risk here and the stock is best suited to those who can spend
some time watching it intra-day and trade it.
Pro Net Link (PNLK)
Perspectives Score - 31
Rating - Caution
Reference: pronetlink.com
- there is a lot of chat about this stock on the Internet, which tells me a
lot of people are watching it for a move. The stock has entered into a
consolidation recently, which typically comes for a move one way or the
other. Because it has been beat up so badly lately, the score is pretty
low. However, the stock is coming off a support level, so I would not be
surprised to see it make a break higher next week. While I am not too
confident on what PNLK will do longer term, I do think there is good
potential for a trade next week. Watch for a break as a signal that the
time is right to make the trade, with the direction of the break serving as
the indicator of where the stock is headed.
Wave Systems (WAVX)
Perspectives Score - 31
Rating - Caution
Reference: wave.com
- put this stock on your list of stock to consider for a short sale. Market
activity is limp and it looks to me that there is a good chance we will see
a sell off next week, with the potential to see it lose as much as half of
its value on a downdraft. There is emotional support at $10, but the market
is looking tired and pessimistic, so watch for a move below $10 as a signal
that a move lower is imminent.
The Scores - What They Mean
---------------------------
Scores greater than 70
Bullish
This stock is worth considering as a buying opportunity. Our model
indicates that the stock has good potential to go higher in the short term,
and is worth taking time to consider. Complete your due diligence on this
stock so that you can make your own judgement on the quality of the company
before making a decision, and remember that our score is valid for the
price that the stock is at when we applied the score. Of course, a score of
98 has more potential than a score of 72, but all stocks in this range
deserve your consideration. In addition, if you are short this stock, you
should consider covering the short position.
Scores between 60 and 70
Optimistic
Market activity is beginning to indicate improved optimism for this stock
and it should be put on a watch list as a stock to consider. If you already
like this company's fundamentals, you should now look for the signals that
the time is right to own the stock. If you own the stock, you are likely in
good shape but may want to consider taking profits if profits are high. If
you are short the stock, you should approach your position with some
caution and watch for the signal that it is time to cover.
Scores between 40 and 60
Neutral
Market activity is doing little to indicate the future direction of this
stock. The stock is likely in a trading range, or, if it has been in a
strong trend over the recent past, it may be starting to reverse that
trend. If you own this stock and are in a profitable position, you should
consider whether the stock is reversing and it may be time to take your
money off the table.
Scores between 30 and 40
Cautionary
Market activity is beginning to indicate caution is warranted for this
stock and it should be put on a watch list as a stock to sell or short. If
you believe that the company's fundamentals do not warrant the valuation
the stock has received, you should now look for the signals that the time
is right to short the stock. If you are already short the stock, you are
likely in good shape but may want to consider taking profits if profits are
high. If you are long the stock, you should approach your position with
some caution and watch for the signal that it is time to sell.
Scores less than 30
Bearish
Market activity is very negative on this stock and it may be very risky to
hold this stock. Shorting opportunities should be explored after doing the
appropriate due diligence. If the stock has suffered a major sell off
already, traders may want to watch for signs of a reversal bounce as a long
trading opportunity, but be sure to watch for the technical reversal which
will likely be accompanied by an increase in the stock score.
As a final thought on this new scoring system, it is important to consider
where the score has come from. A stock that moves from 60 to 75 is likely a
better opportunity than one that moves from 90 to 75. Also, consider where
the stock is relative to the score. Again, a stock that has made
considerable gains of late may have a good score, but entering the stock
given the gains it has made will be riskier. Risk is factored into the
model, but use some of this common sense.
Finally, remember that this model is generated by a computer and should not
be used to make investment decisions. It is a tool which can help you find
opportunities from the thousands of stocks that are out there. However, you
have to do the work to take the list of stocks with the scores you want
down to the stocks you want to put your money on.
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