I read this thread everyday, and thought I'd finally contribute.
It's been a gruesome descent, and for those who bought at $10, $15, or higher it's tough to stomach right now. The chart looks about as bad as a chart can look, so any TA type can only say one thing - its gonna go lower. What else can they say? A trend is a trend.
However, the current situation reminds me of what happened with another stock I track. Like WSTL, SKYT (formerly MTEL) had a hot new technology (two way paging), but had horrible management and bad financials. It hung around $14 a share for a while (just as WSTL hung around $12) then fell all the way to $5 around March 1997. A lot of people thought (just as some think here) that it was destined to drop to $2 or $3, or even go out of business.
Then suddenly, it turned. It actually crossed $20 by the end of 1997 and went to $25 before falling to its current level (about $16).
Here's the chart:
techstocks.com
No TA type ever predicts these types of reversals. It bounced off $5 and was off to the races.
As Yogi Berra said, this is deja vu all over again.
I'm buying in the fives. |
