With the 113% gain since the TradeAlert, it's hard to justify buying at these levels. Even today, it was apparent the market makers manipulated the price (almost got me to buy back). How does a stock gap in the morning with such low volume? The screaming BUY is GOTK. It picked that one up this morning.
GEOTEK COMMUNICATIONS (GOTK) 5 7/8 +1. Issue's 21% advance comes on the heels of yesterday's
announcement of a major deal between the integrated mobile business telecommunications services company
and International Business Machines (IBM 90 3/16 +2 7/16). The deal includes a $50 million contract to
upgrade IBM's FHMA communications network, as well as an arrangement for IBM to market Geotek's
technology. This morning pushing the stock to the top of the Nasdaq most active list was an appearance by
the company's CEO on CNBC, during which he made bullish comments on the company's earnings prospects.
In the interview, Geotek's CEO suggested that the company would produce a profit for its 2nd qtr, which ends
9/97. The comments came as a complete surprise to investors and analysts, as the company was expected to
show a $0.72 a share loss for the period. Based on the CEO's prediction, yesterday's 29% price gain is being
approached as investors attempt to rally the stock back into the double-digits, after the stock had recently
fallen on hard times. Geotek's 52-week price range is $3.50 a share to $14.125 a share, with the low being
reached only 11 days ago. The momentum players have gotten hold of this one and are looking to take it to the
stars. Unless something or someone, e.g. the company or an analyst, tosses water on the fire, the stock could
very well rally toward the double-digits ahead of the 2nd qtr report. Today's volume, so far, is 7 million shares
versus yesterday's 5.9 million and average daily volume of 517,800. |
