[ Hypists, Rumors, and SNRS Stock Price Observations ]
Regarding the rumors: I don't buy it.
I don't suggest that the participants of the thread let their investment decisions be influenced by far-fetched rumors. If the rumors were indeed true, we would have had a continuation of the near term upward price movement. Instead, we closed down 6% today.
However, fund managers indeed have their hands tied when it comes to acquiring issues that are below certain capitalization levels. That includes most issues below $5, and certainly BB stocks. Fund managers have their butts to cover as well, and they will not risk the ire of their clients just for the sake of a potentially higher return from a stock as unknown as SNRS.
I believe that was a message that was similarly noted in Peter Lynch's One Up on Wall Street. Fund managers are tied, and will not be able to buy into a story until after various analysts have covered the issue and the company has established a widespread following. That leaves the individual investor with a tremendous advantage if he/she spots an opportunity at the ground floor.
Now, regarding the stock price:
I believe that others wishing to acquire SNRS at lower prices may have an opportunity in the near term. I did not like yesterday's Candle, particularly since it was doubly confirmed when the price pulled back after it hit a key retracement level near yesterday's highs.
After seeing these developments, I and another I advise closed our "Swing" Position (acquired at an average price of $7.75) yesterday at a price a bit below $8.50. Of that position, I have decided to continue holding about 30% of it for trend-following purposes, and will let the price fluctuations iron itself out as the issue continues its upward advance.
With these developments, the boundaries of a short term downtrend have materialized for SNRS' stock price, which I expect will set up the possibility of an even stronger upward move come breakout time for this issue.
I believe that more significant support will materialize at a point where the price coincides with some key moving averages. It is fast approaching these levels.
Currently, the trend remains bullish, and I continue to hold my intermediate term "teens-level" target, which I believe is in line with the expectations of the opthalmologists you confer with.
Regards,
Rainier |
