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Non-Tech : COSI: Starbucks in the rough? -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (7)	3/21/2004 7:09:59 AM
From: Hawkmoon	Respond to of 23

For anyone who's bothering to notice, COSI did manage to hit and exceed the $5/share level as the Technical Analysis predicted. Based upon this analysis, I cashed out my position and will be awaiting a consolidation in the $3.75 to $4 range. I would expect this to occur within a couple of weeks or so: bigcharts.marketwatch.com The weekly chart (following) seems to indicate that there is resistance at the $5.50-$6 range that will need to be "chewed" through as bag holders from the IPO rejoice in being able to finally break even. So further upside is limited, IMO, and what we are currently seeing is distribution to new shareholders by those who have been in the stock since trading began several years ago. bigcharts.marketwatch.com There is also the issue of the reverse split that was discussed last December. I suspected they would not want to RS the stock (1 for 4?) at such a low price, but might be willing to do so at $5/share.. This would enable them to initially have a price of $20/share, while still providing sufficient buffer for the usual downward pressure that comes from the negative perception of an RS. The stock could possibly stock fall to the $10-15 where institutional investors could still participate, yet have reasonable upside potential down the road.. Whatever the scenario, this stock requires institutional support and it would seem that a reverse split is probably the ticket for getting the shares to a sufficient price that institutions can actually participate in the shares. Will still follow the shares, and remain hesitant to go short at the moment until we truly see the Stochastics and William% "roll over". But the stock is definitely overbought and is due for a correction. And overall, COSI is still one of my favorite places to have coffee and a quick lunch. I see nothing but good things for them over the next year or two, if they can manage to successfully pull off the franchising plan.. But first they need to obtain institutional following and participation in their shares. Hawk