re: CAN-SLIM and cup and handle jargon,
The last time I head someone use this terminology, it was out of Presidential Brokerage in Denver. They have a 3x/week radio spot in this market. They seem to be folks that are chart chasers and focus alot on the techical side of the charts. Personally, I don't like to follow their recommendations (recently they were pushing MSON before it dived). I think there is more to it than just watching these numbers as they roll by.
I asked them about IDTI, BAY, MOT about 6 to 9 months ago. They wanted me to dump everything and let them guide me into the financial heavens. I didn't listen and rode both BAY and MOT up to within 5% of their last highs before I sold them. They didn't have anything good to say about IDTI when it was in the 9 to 12 range either.
So please be wary, these techniques may be useful if you really understand all of the ins and outs of what creates the model. But as for using them casually, I'd focus more on basic research of the company and follow the analysts recommendations to look for your own trend.
Personally, I agree with Rob S. and think there is some basis for the stock moving up towards 20 within 6 to 12 months if the EPS and revenues begin to grow as forecast by IDTI. Also, if IDTI can break out of its association with ALSC, CY, MU and others, then maybe it can warrant a better PE by being in the same group as INTC and AMD? This too could help push the stock up. I also would like to see it go above 20 within 18 months. It is possible, but it will be costly and difficult to keep up with Intel. Look at AMD over time and you will see the results of chasing INTC (good and bad). This is just my opinion based on some experience with this stock, and I am just a casual investor. Even with an upward move, the road could still be bumpy as you see profit taking and some other unexpected items cross the news wires. |
