Greetings John and all,
At the risk of making a fool of myself, I have been waiting for some kind of decent test of the current uptrend before posting something and I believe we did see what looks to be a successful re-test today. As usual, anyone who panicked and sold near the lows, probably lived to regret their actions a short time later. While even the best traders have had trouble timing this wily animal, (definitely not comatose), history has shown those who buy dips and hold for the long term may reap the greatest rewards.
You may be dead right in what you say and I concur that sooner or later this will be transformed into a raging bull. From each of these recent pullbacks, there has been evidence of some hoof-stomping leading up to that buying stampede which may not be that far off. Even the structure is not unlike that of some high flyers of a few years ago before they took off.
It is always frustrating however, as Don keeps reminding us, that the market will do its utmost to dissuade you from your beliefs and original intent and pray upon your impatience to sell through periodic scary selloffs designed to shake out weak hands. When the market starts coming back strong from these sell-offs, it is generally considered to be accretively bullish. Today was a fair effort.
I am sure most here will agree though that the more we learn of the potential product depth of FNTN, the more convinced we become of its gross undervaluation, when compared to the Internet leaders and even newbies such as theglobe.com. Where they only have a website, some income and the obligatory massive losses, Financial Intranet's potential could be infinitely greater. In justifying Financial Intranet's low start up costs and unusually low burn rate in comparison to just about every Internet competitor, it begins to hit home that FNTN comes with a lot more punch than just a website and when viewed in the context that their relationship with Siemens may yet surprise with the long promised Video quality equal or higher than anything yet offered on the net, the situation could still be potentially explosive for this issue.
I have mentioned on a number of occasions that the tremendous rally in the Internet first and second tier leaders continues to latently impact the valuations of all Internet and Intranet issues, particularly those which hold the most promise. Believe me momentum players are combing the markets looking for the next big movers.
Therefore it would not be unreasonable to expect many of these junior issues to move substantially higher, given the multi-hundred percentile type moves already enjoyed by the leaders and recently launched vehicles. We have already seen evidence of low priced Internet plays moving up strongly last week and more of this kind of action can be expected. Financial Intranet, in particular saw unusually heavy buying come in late last week and the structure has the distinct appearance of becoming especially bullish if it breaks out over $1.00.
The attempts to break through $1 are positive, the rejection looks temporary and is typical behavior for a market trying to break through a major resistance area and actually bodes very well for this issue. A sustained move through resistance range could propel us sharply higher as there is somewhat of a vacuum in the $1.12 to 1.60 range and a previous value area in the $1.75 to 1.95 area could actually attract prices. If these levels are reached, substantial new highs would be probable...a fitting reward for patient long term holders.
As Kool Guy points out, if the TA is right, (and I believe it is and may in fact strengthen), we could well be in for the mother of all stock runs. He may not be so far off the mark. Remember the earlier explosions in the lower tier Internet sector? Those moves took place after the leaders had most of their major runs, that means the window of opportunity may be nearing.
So it is not beyond fantasy to imagine that some kind of repeat performance that might include FNTN, should the market suddenly focus in on us. It could happen.
It could also be argued that since making the recent its October lows, following a near perfect ABC correction from the highs, that Financial Intranet is once again in the early stages of a 5 wave bullish up-mode.
What is most interesting so far, is that there appears to be a possible triple 1-2 formation unfolding since the recent lows. Double and triple 1-2's formations have preceded a number of strong rallies in this issue already and these can have a compounding effect over time.
Therefore, a triple or quadruple 1-2, if validated, could carry profound implications as to the strength and longevity of any projected continuing up-move beyond any breakout. A surge past the $1.00 level with some conviction, should suffice and would imply that we are moving into a third wave of some degree, which means given the generally constructive nature and price history of basing action, followed by fairly powerful rallies, the structure may now be turning much more dynamic seeking at least a test of the highs. In short, a strong breakout has to be considered highly positive.
I also want to draw your attention to the fact that Monday's incredible surge in Internet stocks may have been due in part to the appearance Friday of James Dines of the Dines Letter, on PBS's Nightly Business Report, nightlybusiness.org . As one who is regarded as somewhat of a visionary in the Investment World, with a reputation for acute thinking and a rare ability to see the future more clearly than most, his very early bullishness on Internet Issues has paid off handsomely. What is surprising is that he is still exceedingly bullish, which could even be regarded as contrarian, given the consensus among most that the Internets are way overvalued. There is an excellent article on all this including convergence of the Internet with Robotics available at website: dinesletter.com
As Dines emphasizes Robotics, the more one reads in these expanding catalogues offering all manner of new gadgets and products not to mention the major theme of this Fall's Comdex show which was predominantly centered on "Wireless, mobility and convenience", the integration of AI, Robotics and software with shrinking hardware will be the mother of invention going forward.
The increasing role that "Robotics" will play more and more in our lives is beyond imagination. Since FNTN now has its own "Father of Robotics" Dr. Joseph Engelberger, on its board of directors, it can only bode well for their ability to get some piece of that future pie. Topping all that, with the recent appointment of Divisional Vice President of Siemens, Mr. Steven S Weller, one could easily speculate that the company may well be moving in the direction of merging Video, Robotics, Artificial Intelligence, the Internet and possibly wireless in some ways that we have yet to learn about, but seems intriguing none the less.
As most already know, Mr. Engelberger was featured in a Documentary Special that was shown this weekend on the History Channel, entitled: "The History of Robotics", in a significant tribute to him.
A few weeks ago, when news of Broadcom's breakthrough switchable Internet / TV interactive chip was first announced, enabling high density computer type Internet images to be displayed on any TV through a set-top box, it may have become of the most important news items of the year in regards to Internet stocks.
This news was commented upon extensively here because of its ability to expand the Internet's reach exponentially by enabling viewers to surf both the Internet and TV at the same time. The integration potential for direct response advertising and enhanced merchandising and E-Commerce is truly mind-boggling. This chip, has single-handedly changed the dynamics of the Internet as we now know it forever and because it renders virtually every TV set or apparatus in the World a potential or eventual Internet customer. That means that all these Internet leaders are going to have monumental access ratings in the future. It should not be lost on investors that ever since this news, Internet stocks have gone wild, mainly because of the huge audiences that the Internet leaders continue to grow and command, in many cases much, much larger than the Major Networks and Cable TV companies now command. That may be the real reason behind the massive surge in valuations.
As previously suggested, if the Yahoos of this World represent the major networks, lower tier Internet issues such as Financial Intranet could be compared to the current cable channels explosive growth.
Naturally, if Financial Intranet, (FNTN) can deliver on their promise of Siemen's backed and jointly enhanced high quality video technology being as good as has been widely hinted by recent visitors to the company's offices, the implications for them will be tremendous as a video information source serving the Global Financial Community and all investors alike, through this new medium along with their other planned Internet services and Intranet product.
After the shellacking we have had to take in recent months, I hope you all had an especially Happy Thanksgiving. Remember, things could have been a lot worse,
so let's look on the bright side...
Our time will come. The increase in volume and interest implies that time may be near.
Best wishes to all.
Rgds
Wiz |
