If you look at the chart you notice that SPNSF is on a strong upward trend. Having said that also note that people who bought in huge blocks of shares at $7-8 (and there were lots of that), have seen a gain of almost 40% in a matter of 2 days! It would be as if a stock went from $70 to $125 in a matter of 2 days. Now these people are professional traders, they dont care what the company does or would do as long as they see an upward trend they jump in, make their quick money and go somewhere else, or wait to load up again on the same stock (even at a higher price) and make their quick money and so on. The same processed occured from $4-$5 range to $8, and now it is happening from $7-$8 all the way to $10.25. The stock will be stable at around $8.75-$9.75 for a few days before making its new highs into $11 range, and I am sure the process will continue then again. This is natural. For today, which by the way is Friday and traders dont usually want to hold on to their stocks over the weekend, SPNSF I think will close somewhere between $9.5 and $9.75 (with no change or at most 1/8 up or down from yesterday's close).
Now as small players with only a few thousand shares (under 20 thousand I consider small players) we may not afford doing the same thing big boys are doing who can afford buying and selling blocks of 30K-100K, to 200-300K shares in a blink of an eye and whose profits would justify the short term capital gain tax they have to pay. So as long as the fundamentals of the company remain to be strong one trend will be for sure: setting higher highs and higher lows. From what I hear from the developers and my former colleagues within the company I am extremely bullish with SPNSF. My target price at this time is $18-$20/shr (at least), and which I am almost confident I will see by the middle of next January (4 months from now, if not sooner).
Also people keep thinking of SPNSF as just a Y2K player. Y2K is only a small part of SPNSF's potential for huge revenue and earnings growth. This is a company that will be having great growth not only in the Y2K market but in the client-server and software componization market and as Sun Microsystem's thin client, server centric computing architecture takes off later on this year, these 2 markets will grow on a unbelievable rate, and SPNSF is well positioned to take advantage of the huge demand.
As always this has been all in my humble opinion and not as an investment advice..
Regards,
Addi Jamshidi |
