This is a very good time to look at 3 year price chart.
The 4 level has been tested again, and again, over the last 3 years. This appears to be an extremely attractive entry point for this speculative stock; especially with startup in the next 3 months. I believe that much of the recent activity is margin selling and tax loss selling, and after the next 7 trading days, this selling will abate, and we'll see an immediate pop. For those people who want to get aboard, now is the time. Don't wait until January.
This is an excellent time to sell some other speculative losers and put that speculative money into this stock. I think the fact that a lot of the "spec fever" has been drained out of this stock is good news. I think there is less "spec fever" in the stock since May 1996, when the newsletter writers discovered VLNC. Asking the kind of ST traders those newsletters attract, to stay in a stock this long, with nothing to show for it (price is back where it was on May 96), is too much to expect from those kind of holders. Also the fact that some of the guys who put all their assets in the stock (on margin), have had a hit here, is just one more sign that the speculation has been washed out (Although I feel sorry for Fred).
The presence of all these speculative elements usually are signals of trouble for a stock. I feel more comfortable with the stock now, then I have all year. I guess I'm just a natural contrarian.
Paul |
