To all-
In contrast to my typical style of INVESTING, I offer a potentially profitable TRADING opportunity. Eidos (EIDSY) is approaching its old high of ~$17, which it set about a year ago. The volume has been increasing, and the TA looks supportive of a breakout. The company should be releasing its quarterly results late this week, and assuming the news is good, the stock will certainly set new all-time highs. As any TA gurus know (even old Fibonacci-;o)-and he's long dead), the older the resistance area/trading range, the greater the subsequent run-up, following the breakout. Check out ERTS' recent action. Any chart-watcher could have anticipated an eventual breakout from its old high of ~$40. When ERTS announced the Tiger Woods deal, the stock shot through to all-time highs, due largely to technical buying (i.e., people wait for a breakout and they buy shares). Unlike ERTS, EIDSY is not even close to being overpriced, so there's plenty of room to run before valuation becomes an issue.
Of course, there's the chance that EIDSY could miss estimates or have bad news, sending the stock lower, and making $17 much stronger as resistance. But this is a speculative trading situation, and it's not nearly as safe as holding THQI on Tuesday night (tee, hee, hee!!!!!!!). Nonetheless, there's an opportunity to make some quick $$$ and the possibility that EIDSY will be a good longer-term holding, or even a buyout target for someone (like Cendant Software, perhaps?).
Just my $0.55.
Todd |
