AXC could hit a low of 7, before it rebounds to about 9...
Well, you wanted some TA, so... I hope this isn't toooo long.
On one of my TA packages, I ran a linear regression last night between the recent high AXC hit in about mid-December and last night's close of 7-7/8. This regression line is bounded by upper and lower parallel lines that form a trading channel. The channel shows that AXC is now trading down to the bottom of this channel which is near-term at 7. The good news is that the top of the channel is at 9! I don't know what it will take to get it going up to 9, but it seems that a lot is hanging on the annual report, or the "developments" that Bramson said he would report on before the report. The ONE YEAR channel puts the upper bound at about $11! As if we didn't know: presently GROSSLY underpriced!
At 20% growth, the stock in my calculations should be at least fair-valued at $11.40 (20 x $0.57).
Another observation is that larger-resourced traders or institutions are day-trading this stock. Look at lombard.com. Go to the graphs and pull-up an intraday graph on AXC. Look at the behavior. People do believe in this stock from a resiliency standpoint. They are just not ready to commit to it as an investment -- only as a trading medium.
Again, last night, systematic selling was decreased even more (see my former post on this). But, again, as I said then (and, again, I'm definitely NO expert, but...), I think there may still be some downward drift before any systematic buying resumes in earnest.
Do you know in your calls to IR if AXC is actively trying to get the bigs boys on Wall Street to begin analyzing? How does a firm get to do this... I wonder what the protocol is? Does IR have to camp out on the front steps of a Prudential, Smith-Barney, or Merrill-Lynch or what??? Just being figurative, but you know what I mean.... |
