Ahh, maybe. But the real driving force is the thin float, a few active traders in a stock with widely different criteria for entry and exit. The driving force usually is with the selling price limit. And obviously, during the day, this limit changes drastically.
I believe the fundamentals remain intact, and that the sell off was "unfounded", if there is such a reality.-g-
However, I do believe the stock has lost its aura and the confidence has been severely impacted. To me, this is a profit opportunity. But I now believe the top end limit of the stock might be reduced because of this dramatic decline.
Previously I had a target of $100 in 12-18 months. I am tempering this to $80.
Now, I also believe that SPCT will be issuing a stock split within 6 months. And I think it will be more than a 2 for 1 split. Possibly 3 to 1 or 4 to 1. They need more distribution in their stock and they know it.
And when SPCT announces another major customer win, that's when we'll see the confidence surpass even the prior levels.
We saw MPDI's order from Lucent on single carriers. Lucent will have to buy multi-carriers soon to remain competitive, and SPCT has the best, and the most competitive multi-carriers. SPCT has been cautious about over selling its capacity, but this is improving, and I expect SPCT to increase its customer base with significant players.
Again, I will state, that the press release from SPCT was not as strong as I would have liked. They may be saving the thunder for the Q report. If there is nothing that has materially changed, SPCT is severely under valued, and will return to prior levels imo.
In fact, you'll most likely see traders' money selling PWAV and MPDI on there respective runnps, and flow into SPCT.
Good Trading. LF |
