After all of the media exposure during the last year and the resulting trading action, at this point it is clear that there is no institutional sponsorship from any quality firms, no analyst recommendations, no mutual fund participation, and no hammer to push the stock to new highs.
A chart of BCRX illustrates how a recent announcement, actually a analyst recommendation, created a gap and was accompanied by real follow through as the market recognized real value at the time of the announcement.
The chart on ETEL illustrates only short term traders (like me) reacting to the company's repetitive press releases over the past year. If there was something real here, then a number of quality firms would already be behind this stock, providing sponsorship, and taking it to new highs.
The moral of the penny stock story is, "Don't believe the hype", especially when it comes from the company itself. Next stop on the chart is 4 1/4 followed by a trading bounce, followed by a move back downward to fill the huge gap all the way down to 3. Shorts can begin budgeting these easy pickings into the end of month shopping list.
After that? The company cooks up another press release that they will acquire the remaining rubble of wireless, high speed Internet access left over from AMPD after the Feds have their way with the Amplidyne hype squad.
You are right, that attempt to publish the pig was pretty weak. Maybe too much time staring at charts, I dunno.
Good Trading |
