Mooter, actually for a short two months there (when the GATE went from $.5 to $2.5) we were on the same side, then I turned bearish again. Now it is back at $5/8 or so (after a swoon to $.25), and I am starting to watch it again as a potential bottom fish. Of course, at the time I had a max bullish potential of $5 to $7, now I have to reduce that by a factor of 3 to 4 (more stock and only half the potential profits since they will share with Actel). There as here, we had some very knowledgeable people making sizeable investments, but somehow, the negative technical action of the stock indicated to me, after the run, that the big boys found a way to leave the little guys at the door.
While not exactly the same parallel situation here (they never are the same), I am waiting in VLNC for a clear technical signal that the fundamentals are indeed improving. If that requires a washout (like we had at GATE at the $.5 level) or a breakout to new highs, I am not particularly concerned about (I would prefer bottom fishing, but have bought many times on breakout, just like PROG recently).
Zeev |
