David,
I tend to rely on MACD, Bollinger Band "pinches", and money flow indicators to predict a gap-up or gap-down.
Currently I'm following MUCP which shows all the likely indications of a gap-up in the making. Strong insider buying, very positive money flow, improving volume, and VERY tight bollinger bands indicating a gap up/down developing (I use money flow to suggest it will be a gap-up).
Besides, the company is on the brink of closing several potentially lucrative OEM deals for their set-top box design with Asian companies. They have a Chinese character interface that will permit Chinese users to have access to the internet through their TV's ala WebTV.
And since they license their technology, they will collect their majority of their earings solely from royalties and licensing revenues (I've heard $9/box), with little overhead from operations.
I'm glad to see this thread perking up. I've had it bookmarked for some time hoping to see some examples displayed of gap ups and the signs they displayed before, during, and after their occurrence.
Regards,
Ron |
