Teflon, Joel, board. I just spoke with one of my tech "consultants" about ICOM - I still have two calls coming Friday evening from my other "consultants", but I wanted to convey this information.
**CAUTION: The following is only the OPINION of one person. The opinion could be wrong. Please do your own dd.**
Unfortunately, my consultant was not too enthusiastic about ICOM. Right industry, good products, but apparently some baggage from the past. Allegedly, they needed to satisfy debt obligations, and they did it through a large placement of shares. Allegedly, they are still financially strapped. Should those shares find their way to the market, it could put pressure on the stock price. They need a new product announcement to rally the price from here [in his opinion]. He does not know if such an announcement is coming [the person who brought this stock to my attention feels a product announcement is coming - obviously, he cannot guarantee such a thing as that would involve priviledged information - so this is strictly based on his SUPPOSITION]. On the positive side, their current product line is very solid and the demand strong - however, the feeling is that ICOM may be unable to fully satisfy the demand and may be leaving money on the table unnecessrily - questions about management execution. In balance - not exactly positive.
---------------------------------------------
My comments:
When the stock was brought to my attention, I liked it from a TA point of view. As a trader, my idea was that there is an extremely high probability of at least a 40% appreciation potential, which is why I went in for a trade. I was going to decide on taking a longer-term position upon completion of my DD.
This happened at just over $5. I didn't get in, until recently at 6 1/4. I already traded it 4 times. The stock has been going up nicely, and the volume has been right - big on rises, and smaller on declines. The stock goes up, retreats to higher lows, and comes back generally trending up. There is some congestion as it tries to break through the recent highs - the stock has come a long way, so now is a critical time (the profits are large enough, that many may want to take profits and this can snowball). What is necessary is a "precipitating event" (such as a new product announcement) to break through the congestion and the old high - should that happen the stock could go much higher.
At this point, I will wait for the Friday evening calls to make a final decision. However, I am not going to take a longer term position this Friday. While I trust the person who brought the stock to my attention, I do not like a lack of "unanimity" in opinions about a stock - there are too many stocks out there for me to commit to one where there may be even a shadow of doubt. Unless I get a strong, detailed and convincing endorsment of ICOM from the other two people Friday evening, I will confine myself to trading ICOM, not investing in it.
Sorry about the "bummer", but I have to report what was conveyed to me.
Morgan |
