Guys and Gals ...............
AXC had about a 45% increase from .81 to 1.21. Now it is supposed to have a pullback of anywhere from 1/3 to 2/3 the last run distance. So far the pullback is 1/16 and that without any volume. In fact it looks more like a higher resting or consolidation level to me.
More important the last two minor moves look like real trading waves. Like red flags waving, these are very healthy and are sure to attract the bulls and even some bears. In contrast, those recent flat days where each range mirrors the prior (while often good end of bottom patterns) is of little interest to anyone.
For a sold out orphaned shadow stock, the first rally often goes unnoticed. Who would believe it? Even better, what analyst or sponsor is there to tout it?
IMO, the very process which AXC suffered (in reverse time order) the tax loss sellers, the analyst abandonment, the index fund sellers, the loss of optionable status, the loss of marginable status, will have to be replayed but now in reverse.
As announcements (and PR releases) become more steady - we had three so far (the 7.8MM DST order, the WSJ Article now the new MicroNet Line) in the last three weeks, the investment community will "discover" ol' AXC and we may even pick up an analyst who will be happy to follow prices right on up.
In conclusion, sit back, relax, watch the snow melt - nine out of ten, the worst is over.
Ed Perry |
