We can study charts and charting theory all we want but for the long
haul ( an that is 18 months now if you want the lower capital gain
rate) for the long haul it is the fundamentals of the company that
count.
I cannot find any fundamental reason after checking, a couple hundred sources on Dow News Retrieval; Telescan; PR Newswire; and
the internet sources.
So if there is a fundamental change here, a change from the good
sales growth this company has been experiencing, this change would
only be known to a few insiders.
Now having down played the charts in favor of fundamentals, let me
say that I plot the moving using a 30 day, 120 day and 200 day moving average, the only thing I see is that it tested the 30 day average and then bounced back above the average.
The INNOVEST, prediction on October 14th, was that the stock was
going to take a dip and their opinion was firmly bearish. But here
again these tend to be short term technical analysis and tend to
drive you nuts if you are trying to buy and sell based on their
analysis.
Until we have some hard facts ADMG is not for sale in my portfolio.
If any of you are having sleepless nights when a stock which has
gone up 100% in a year, has a drop to the 30 day moving average, then
it is probably better to invest in T Notes or Bonds because even the
best growth stocks bounce down.
Last year I followed one of our stocks go from 7 to 32 and back
to 20 then up to 60, then split and go back to 60 again (Which put
it close to 100 at pre split prices ) then drop about 30% and split and go back up, for a total return of well over One Thousand percent in a year. Sure it becomes a wild wide but isn't that what we are looking for? So the only question is when the game is over, and for answer we have the longer moving averages to follow and give us the Red Light..
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