Lawrence, I am watching a number of "fallen Angels" for possible revival, including Syquest, GATE, IMPX (on which I have just turned "pinkish" as well as a group of DD. Frankly, by the time I know the reason one of these turns into a Phoenix it is too late, every one knows the reason and it is in the price. That is why I am trying to follow the technical action where a "story" could develop. In the case of APM the story is "future" profitability, and in their case they have enough cash on hand to survive few quarters of red ink. I got into GATE based on similar premises, a sharp drop in price due to mounting losses and a floorless until the stock refused for few weeks (actually months) to go further down and then an explosion of volume gave me the signal. Within a week it went from $.5 to $1.5 and I sold a month later at $2.5 (it is all recorded in the GATE thread). I am hoping that your 40% drop in one day might materialize since these drops are often cataclysmic and bottom forming. For now, however, I have not the foggiest what would be the actual catalyst for a turn around. I did not know in the case of GATE either. As a matter of fact, once I learned what the catalyst was, I decided to sell.
Zeev |
