I'm mostly a trader, not an investor, and I picked up shares today at $13 5/8? Why? Couple reasons. First, as already mentioned, Michael Murphy has this on his radar and wrote about this as a "Wait to Buy" in his most recent issue of CTSL. The reason it was a wait was mostly due to technicals and a crappy chart. At the time it was around $16-ish, and I wasn't too interested since upside seemed pretty solidly capped at $32-ish (for several reasons), so "only" a promise of a double over the mid-term; moreover it looked like it could go down to $8-ish (based on technicals), and that's what I expected it to do. However, after the news came out, yesterday I watched pre-market and early trading and the support surprised me. They tried to open it really low, but there was too much demand and it rose too quickly for me to get in my buy at $11 3/4.
So there was strong interest in the stock. Now, the candlestick chart was very positive yesterday putting in a reversal pattern known as a "piercing line". Typically a candlestick reversal pattern in a downtrend is not a buy signal per se, but rather a place to offset current positions (e.g. covering a short sale), but other factors outweighed this caution. For example, now that we've had this further fall in price, Murphy will probably recommend it very soon, so there should be a little buying from his subscribers. Second, there should be a general upward bias in stocks like this as we head in to the end of April with the H&Q tech conference.
Those are a few of my thoughts at the moment.
FWIW,
Anaxagoras |
