Good Morning Cliff and all: This morning FNTN is trading higher, which may come as a surprise to some after the brief pullback yesterday. Allow me to give you some of my explanations as to why this is happening and why FNTN is acting so strong.
Maybe they've got all their ducks lined up or even added a few more to the row..?
As I mentioned yesterday, stocks that are this strong in a down market, invariably outperform on the upside. But there may also be a number of other reasons:
Does anyone know what TPO's are? They stand for Time Price Opportunities.
They are part of an esoteric form of market analysis called Market Profile, developed by legendary floor trader Peter Steidlmeyer.
With this method it is essentially possible to put a magnifying glass over the trading activity and enables one to gain an incredible insight into what is really going on behind the trading scenes.
It actually reveals how much accumulation is going on so clearly, that at times, it almost jumps out and grabs you. When the TPO's are bullish day after day and the stock is basing, regardless of whether there are minor fluctuations in price, these positive TPO's can add up or accrete over time. What this invariably signals is that another rally is in the offing. Yesterday's TPOs were very bullish.
What is really fascinating in regards to FNTN, is the fact that the TPO's have been bullish for weeks and continue to be so, day in day out. What is this telling us?
In my opinion, what is going on with FNTN is something similar to what has happened to may other internet high flyers, where the level of interest is so intense and more importantly, the weight of money going into the stock is so much greater than the supply of shares, that something has to give causing upward price pressure.
So, whilst FNTN is rising as the others did, the difference for us is that it is happening in 'slow motion' and in a very methodical way, building on its gains day after day, regardless of any external influences. We also know that the remaining float is becoming increasingly tight as the lurkers count rises steadily on an upward path.
Now as more investors analysts and brokers come visit the tread and frequently comment that they have never seen anything quite like FNTN in a BB stock etc., one wonders how many other analysts or companies are also seeing the same thing. I think we are showing up on a widening universe of radar screens as each day passes and word gets passed around and small cap and BB stocks, especially internet stocks have become the focus of much attention, especially as the OTC index is tending to perform better than the large caps.
When you a see a structure as bullish as this, you have to ask yourself what else is going on behind the scenes that we don't know about? We know from reports that FNTN's President has a six month agenda of announcements planned for FNTN. Six months! Are these guys way ahead of us or what. They were working round the clock to bring us the Website and are now working to get the Streaming Video on line.
Are they also working round the clock on the Intranet roll-out as well. What more can be in store? Judging by the stock price performance and the most incredibly accretive TPO counts I can ever remember seeing: Plenty. It doesn't matter whether its IBM or Yahoo or any stock for that matter, when a stock is in a strong bull trend, you have go to think ahead and try and anticipate what's making it happen. What are others seeing that you or most of us cannot.
Absolutely nothing can be ruled in or out in these situations. As Don has counselled us on numerous occasions, it was foresight and tenacity that enabled patient holders to successfully ride the unprecedented growth waves of every one of those high flyers from Amazon to Yahoo. The interesting thing about FNTN is that it has been moving up slowly and methodically. This holds great promise for the future and imo is much more long term positive than a fast run-up. By good fortune, chance, accident or design, we have all somehow ended up invested here and it seems to be turning out to be a lot better than expected as each new month unfolds.
Riding a big winner is tough to pull off, but with everything that seems to be happening for this company it may be somewhat easier to accomplish.
Best rgds
Wiz
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