Dennis G., Just back from the WCW Site- did you know that Ted Turner and Hulk Hogan convinced former World Champion Canadian Bret Hart to jump from WWF Wrestling to the WCW?? What a tremendous marketing job Ted and Hulk are doing in building up the "AFL" of wrestling leagues.
And in a sense, CREAF is in the "AFL" of tech stocks league. Because it's not US-based I believe that some investment firms shy away from it, with the usual concerns over US equivalent accounting disclosures. And because it's not US-based there is less information available to major brokerage houses on the stock too.
As to short interest, there is very little currently in CREAF- just 1/3d of an average trading day's volume would close all short positions. (Compare e.g., FAST where it would take 25 straight trading days at average volume to close all of the shorts!! Whew!).
My guess is that after such a precipitous drop out of the blue (fundamentally speaking) that many will take a "wait and see" attitude at least until Thursday's Annual Meeting where questions may be asked. I.e., how is demand looking forward- will Sim Wong Hoo announce any new deals/ partnerships, are new products to be announced, how do profit margins look going forward, what does this new "Building the Coolest PC" Program entail, etc. And the really cautious may wait for the mid-January earnings release to take any action on CREAF. My guess is that CREAF will drift upward up to Thursday- and then move based upon news reported at that meeting.
And if you get another big earnings surprise in mid-January, then expect a major gap up in the stock. As I had mentioned before companies do not stop and start on a dime. Generally where a company is doing well, then it will continue to do well since the conditions/products upon which it is doing well have not changed. And the converse is true too- if a stock is doing poorly, then it will likely continue to do poorly.
I track weekly stock results. I have noticed over the last few years that when a stock hits a new weekly high, then generally that stock will hit a number of additional new weekly highs over the next 52- week period. For e.g., go look at BMC Software or Northern Trust's or Astoria Financial's records for 1997. (This is a good lazy person's investing technique- look for new weekly highs and then buy those stocks- also look for new weekly lows and then short those stocks for the next 52 weeks).
Now CREAF hit a new weekly high about three weeks ago. Now I do not know if this correlation would hold in a bear market if we get one, but I'm betting that somewhere in the next 52 weeks that CREAF will hit additional new weekly highs.... Let's see if that pattern holds for this stock....
Sincerely,
Doug F.
PS. If you go to the WCW Site, then whatever you do, do not click on the button at the top of the page which says "DANGER, DO NOT CLICK HERE!!!" |
