Hi Dwight. I've been around, just keeping a low profile.
You remember I mentioned SPCT to you, back when it was ~44. As a long-term investor wanna-be(!!), I watched SPCT to go from 44 to 65 and back to 44. I got out this morning at the open for various reasons, some that you mentioned. Thin-float, limited customer base, two-tone press release, momentum boys,,,, was just too much to take for me.
I think yesterday's rumor started spreading when it was around 55-57 because MMs pulled it down fast after that...Interesting enough, once they saw 48 was not holding, they took it down to the secondary offerings price of 45 and then froze it since sellers kept coming...good move!!!...was pretty wild to watch but if you had watched the stock before, every stop was expected.
Then this morning, they opened it around 55 to tickle the shorts a bit but dropped it quickly once profit takers rolled in. Finally, they closed it above its break out price of 48.
I would avoid the stock for a while. Too risky at this point. We all have seen lots of broken momentum stocks(hint, hint...cscc, asnd!!) A typical recent example is CYMI.
SPCT would probably test 55 again before earnings, on shrinking volume. The "quality" of earnings and how they will expand their customer-base will determine their fate.
As far as stocks to watch for the next two months, if I come across another SPCT, I will let you know. I can think of lots of hi-flying shorts, as we are heading into the earnings season.
Take care;
Clint |
