Dang, it is beginning to look as if SEVL is going to pull off the transition to a new business model it began last summer. When I spoke with the IR guy months ago, he said the company always had great technology but played too many roles: CD producer and distributor for its own and third-party products, software developer, and more. The company junked the lines in which it was failing and focused on its strengths. Now the deals are coming, though it's unclear how much revenue the company will pull down from them. Even so, each day it's looking less like an Internet hype stock and more like a legitimate turnaround story. If that's the case, the stock should have very good support above its 200-day moving average, which, if memory serves, is above 4. That may not sound like much, but after all the phony rallies of the past year, it's quite a reversal. A long position is looking sustainable.
J |
