Now may be the best time to accumulate more shares....
I say this because if you watch the daily movement of the stock it always seems to gravitate back to the tops of the day, especially recently, and another more interesting point is that even during the carnage two weeks ago, this bounced back very quickly. That in itself is a positive.
Now let's take a more empirical look...if we assume that average daily volume is 140,000 shares that means 1% of all shares are traded daily, AND since the market works on an equal buy and sell mechanism for every buyer there is a seller. If you look at most of the trades that take place during the day, you rarely see "large block trades'....alot of them are 100-500 share trades (obviously not institutional buying here...and occasionally you will see you 3000-5000 share blocks go by. This means the small guy is BUYING!!! The small guy is not buying to make a 1/2 or 1 or two points...seriously now. This is classic bargain hunting and when you look at the rest of the overpirced market, how can you not be attracted to such a strong and fundamentally sound stock. I mean, I ask ANYONE to find something wrong with this company, becasue I can't....
Anyway, thaking this one persent formula, I come up with every 90-100 days complete stock turnover occurs. If you look at the current charts you can see that about every 90 days the stocks is MOVING HIGHER!!!!! Based on this, I think that the stock will stage another rally in the next 30-35 days. AND once we crack the $14 a share range, the institutional buying will defintely set in and carry us to $18. On the way down there was alot of insittutional selling and high volume, right now its low and quiet....
this makes a whole lotta sense to me and is still a good buy....
Feel free to comment, for or against me....
Phantom Dialer |
