AR,
The price increase for LCAV was due solely to the news release. The technical indicators did not see it coming, nor were they very much changed by today's activity.
It is significant to note (as you have noted) that in spite of the large volume (173,200 shares), the price failed to penetrate the $3.50 price. This upward price level represents shares for sell by individuals who believe the stock to be fairly priced at $3.50/share. All of the hype, wishing, and upward predictions to the contrary, a price move above $3.50 will not happen until either the demand for stock exceeds the supply at $3.50, or earnings justify a higher price for the stock.
One significant fact which shows the strong following and support for LCAV as related to other stocks in this sector is that LCAV showed the greatest percentage increase as follows:
Stock Increase (7/14/98)
LCAV 11.0%
LASE 4.5%
LVCI 0.95%
BEAM 4.3%
VISX 1.6%
SNRS 2.0%
ISEE 2.9%
OHSI -7.4%
What will happen Monday to the Eye Care sector will have little follow through from today's momentary "outburst", but will have more to be worried about by the stock market correction.
Harry |
