Tejek, et.al.:
I agree with others that so far WCOM management appears to be doing, and focusing, on the right things. The stock price, however, is being held hostage by all the usual FUD, and it will stay this way until the FUD abates. Meanwhile, the action in the stock price is consistent with a double bottom theory. That is, the initial bottom is usually driven on exceedingly high volume, which is exactly what occurred last month on the drive by shooting of WCOM to ~$1.08 (May 14th to be exact). In order for a second bottom determination to be made this second bottom needs to occur on declining volume, with said volume significantly less than the first bottoms spurt, indicating an exhaustion in the sell side and possible set-up for future buying. This is what now appears to be happening (see a one month chart).
Now does this mean an ultimate retest of $1.08? I kind'a doubt it, but wouldn't be surprised because of all the emotion currently built into the equity. But a test down to ~$1.20 would definitely not surprise me (a point where I'd be doing a big-time nibble). The only thing that runs counter to this idea is we've had 6 consecutive down trading days, a fairly rare event for WCOM. So just from an "odds on" standpoint WCOM is due an up day.....course....with continued general market-wide angst who can say if "odds on" has merit.
Currently here in pre-market WCOM's last sale was....5.1K shares at $1.39, with oddly enough the trade before that of 100K block at $1.40. That's big by pre-market standards. So we could be looking at WCOM spending yet another day flipping, this time at some bid/ask level in the $1.30's (though pre-market could be a bear trap set-up).
Like you I'd sold some of my earlier collection at a higher point, and am now simply waiting to see where the equity stabilizes. Let's see how it plays out....
John~ |
