This stock has been trading in a congestion zone, between about 7 or a little bit higher on the bottom part to about 8 1/2 on the top part for some time. This stock will have to close above 8 1/2 on significant volume to break out. The volume has been running about 100K for some time, so I would think it would have to hit at least 200K or more to mark a significant breakout.
Lately, the highs have been slowly improving from 8 1/4, 8 7/16, 8 1/2, to 8 9/16, but it has not closed above 8 1/2.
Also, the stock has not made a double bottom at 7. Now it certainly doesn't have to, but I might feel a little better if it had. It's hard to see how there can be much downside risk at these prices. But other stocks below 10 are moving up, while this sits there. Many of the stocks moving up that are still below 10 are losing money, in fact, which makes it even more strange that this stock would still be selling at this low price, given its good earnings, 65 million in cash, and no long term debt. Look how ASPX has rallied in the last few days, while it is losing almost $1 per share. BTW, I am not recommending ASPX at $10, its current price.
I believe the CEO owns 87% of the stock, is that correct? If so, this is almost a private company, and you have to wonder how responsive he is to his shareholders. Does anyone know what the price of the stock options are for the officers?
Later,
Harlan |
