Ron, for a low-priced stock CLAC looks great. It has had positive momentum and vastly improved money flow the last couple days. The chart looks very nice, too (even though charts of low-priced, less active stocks are not as helpful, IMHO.)
I don't know how high it can go but the major resistance is at $2.00 where it based for 2+ months last spring/summer.
It faces some minor hurdles at about $1.25-1.50. I bought it at .66 a couple weeks ago when I saw that management predicted a 7-10 cent per share earnings in 2002. It's not necessarily good to trust management's guidance, but it looks like many others are, or at least thinking that the risk is minimal since the stock is so far off its yearly high of over $9.00.
The stock seems to be gaining momentum, so we'll see what happens. Dips are being bought and then it races to new highs, so far anyway. This week's action will be important, now that it had broken over $1.00 a couple of times. I'd like to see it close above $1.25/1.30 and then $1.50. Then I'd tend to be wary of further gains after that in the absense of positive news.
PS- This is more of a fun stock for me than anything. I rarely put a lot of money into these riskier, low-priced issues, but it's been one of my most profitable trades already in the last 30 days. If there's any time to buy low-priced stocks, it's January...LOL!
As always it pays to call the Company, their clients, visit them, and do as much DD as possible. |
