Hi MellB; Today, at about 11AM, RGFX did a textbook
panic bottom:
tscn.com
(Included links good only for April 6-15th.) My
experience is that these sorts of bottoms are
indicative of fundamental players buying into a
stock, and that RGFX is unlikely to go lower except
in a general market conflagration (which is possible)
or more bad news.
Regarding bad news, I think that the new management
has probably minimized earnings for previous quarters
in order to maximize the earnings comparison with the
quarters that apply to them. I'm sure you've seen
management do this before - take the largest loss
you can, and get it all into one quarter. So I'm
not particularly worried about bad news.
All the industrial printer makers are making new 52-week
lows right now. I think RGFX is the most reasonably
priced of them all. Look at the Price/Sales for the
other guys:
tscn.com
tscn.com
tscn.com
I would much rather be holding RGFX than any of the above.
Note the lack of a panic bottom anywhere in the PRST chart.
It is my guess that PRST will fall well into single digits
before it finally bottoms. Also note the action in ENCD
at the close. They are going to be spanked tomorrow in
my opinion, and this could drift over into RGFX.
I'm getting ready to start day trading, unfortunately I am
in demo (i.e. paper) trading mode right now. But I watched
these stocks today closely. (In demo, I nailed the panic
bottom on RGFX, and shorted PRST for a point. Hope I can
do as well live. :)
Other than the market as a whole looking toppy, and my
need for cash, I would add to my position in RGFX, which
I am still holding. I think now is a good time to add
to a position, with the expectation of a return to at
least $1.80, and more probably $2 within the next week
barring another nasdaq collapse.
-- Carl
P.S. Best of luck. I'm holding 2000 shares at @ 2 1/4,
what are you in for? |
