Why not buy ftel? I figure 2 reasons depending on your camp.
1. The stock has been on a long downward spiral, folks on the
technical side (who aren't intra-day short types) won't jump in until
a change in direction is confirmed. Getting in now would be too early
since the only established trend of late is sideways which will only
result in dead money and an uncertain future.
2. Investors looking for an oil strike have not justified the
risk/reward of getting in at this time. There is potential, but still
too much risk with the reward horizon being constantly pushed into the
distance where larger competitors may be given time to ramp up.
Something else is missing from the ingredients to increase the
chances of success and justify the risk to the reward. That
ingredient could be money, financing or sales contracts which ensure
future revenues.
By looking at the chart, I figure #1 is due to change any day now and
will bring those folks on board.
#2 has been rumored to surface for some time now. I would think with
the buying of the NATO network, the hiring of additional staff, the
expansion of the network internationally, and increase marketing
efforts, the company will have to step forward soon with an addition
cash source (partner, investors, IPO, etc.). Anybody getting in
before #2 is taking a great leap of faith and a big roll of the dice.
Chances are, this will be what drives a major breakout of #1.
The company has announced activities in Australia/New Zealand and
Europe...I imagine Asia and South America activities should be
revealed in the not so distant future.
It's fixing to all come together. The stock is going to move up so
fast and so high that folks won't know what to do. They're going to
quickly forget all about these terrible lows and think that it will
never stop going up. Anxiety will creep in as investors sweat over
whether to hold or sell. History will repeat.
Mike N from Texas
aka Packrat |
