To: DR. BOND who wrote (2281 ) 11/9/1997 10:47:00 PM From: majander Read Replies (1) | Respond to
I think we will retest the $40 price, and my target over the next 10 weeks is $44. I base this on a p/s of 11x and I am assuming they will earn at least what they did last quarter. This is of course conservative. I am not counting the sales from the new capacity due real soon, of course. If production can ramp up by Q1 we will see rapid acceleration in price and a lot of happy traders/investors. We may see the 50's sooner than anyone realizes. I base this on the fact that the cat is out of the bag and people will realize that this was only a natural cause(rip). You gotta really give this guy your best for doing what he did at his age-truly a mans man! I only hope I can be like this guy when my time comes. Nevertheless, I am looking at a weekly chart and daily chart of vvus and applying the stoch., and rsi, and the volume oscilator in conjunction with a similiar pattern from the bottom back on dec. 17, 1996. This is of course with the fundamentals much much better than they were on that day. Another favorite signal I like is the parabolic long/short indicator. If we penetrate 27, this would be a parabolic long signal(using a daily chart), and we should go long for the next ride to 40+. Overall, the market is oversold and we may have hit bottom on friday. However, the market may become a bit more oversold in the short term, but I think we are pretty much there. Believe it or not, we are still in an long term uptrend and looking at the weekly chart you will see that the fma is still above the sma. Also, I would like to point out that the volume oscillator is negative while the market has been declining which is a bullish sign. This just my 2 cents worth and I will be happy for any comment on my analysis.
