Hi FJ and here you are: The following are excerpts from an electronic Newsletter by Wiz called “Financial Intelligence” and is being posted on this thread by Bill Fortune III, with permission from “Financial Intelligence”.
“One of those values that began stirring last week was our old favorite: Financial Intranet Inc.
FNTN has been basing out over the last month either side of the .60 cent level and following three attempts to re-fill a an important gap that was left between .48 and .50 last October. When the market failed to get near it, it turned on a dime and began moving rapidly and very sharply higher, climbing almost 50% on the week and completely reversing all the negative action of the last month or so and leaving some extremely bullish breakaway gaps on the upside to boot. Actually, FNTN will probably confirm this week and month, a technical structure that in the annals of technical analysis just doesn't get any better or more bullish.
In response to numerous requests over the past few days for a technical update on where we are and where we might be headed, I've compiled these ideas. Thanks for the interest.
The formation is a monthly double gap up and down Island reversal, also potentially leaving behind a clean cut intra-day island under the .70 level with a near perfect equidistant gap at either end of the formation. Folks this is the kind of formation that literally occurs 'Once in a Blue Moon' and in my opinion holds very profoundly positive implications for Financial Intranet. The last time anything remotely resembling this type of formation occurred, which also coincides with the last time I used a "Once in a Blue Moon" type reference, was in regards to the Japanese Yen last summer, just a few days and weeks prior to the Japanese Yen's most explosive upmove against the US Dollar in all of its history.
Interestingly the structure of Financial Intranet is infinitely more powerful than that of the Japanese Yen, because of the elongated 18 month dynamically bullish base that has been potentially enhanced by what so far looks to be an outstanding inter-month near double bottom successful retest of the lows and swift recovery to a previous value area.
In some ways the recent 3 month double bottom resembles the structure of the Dow Jones and S&P just before their spectacular lift off last October and from a more recent short term timing standpoint also resembles the structure that produced the massive 33% in one day turnaround in the Brazilian Bovespa index, which we happened to highlight here ahead of time. The same thoughts crossed my mind in regards to Financial Intranet's potential and actually alluded to at the new FNTN Connections chat center the day before liftoff.
Check out these new chat rooms fntn.com and click on FNTN connections.
These new chat rooms are attracting a lot of interest and attention and may be part of the reason why the stock suddenly took off. Actually there are a number of fundamental explanations in addition to the technical reasons highlighted above. It would appear that some unexpectedly large buy orders appeared at the opening of trading on Thursday, catching the market makers completely unawares and very short of any stock.
This immediately drove the stock sharply higher on almost no volume: An exceedingly bullish sign by any measure. In addition, it is distinctly possible that a number of traders with a particularly negative view of this issue may also be have been caught short at their own peril and instead of making their envisioned killing, have had a few sleepless nights.
In addition, against better advice, some substantial investors may have sold, perhaps for tax purposes and other considerations and are now out of the stock and want back in bad, to rebuild their core holdings, sensing that a major move could be in the offing. So the situation is very interesting, because, fundamentally, technically and psychologically, the giant lever of sentiment appears to have been demonstrably thrown from bearish to bullish. This means that any dips are likely to be aggressively bought. Secondly, the long base structure with the false breakout to two is an exceedingly bullish structure, that frankly exceeds the potential of many a huge winner's earliest days. Being able to identify such an inherently bullish structure ahead of a major move is a 'rare' privilege indeed. But the facts speak for themselves and I consider it my duty in uncovering these findings to highlight and bring them attention.
In Elliot wave terms, the technical situation, sentiment, wave count and potential breakaway gap at .60 cents appear to imply that Financial Intranet has finally embarked up on its long awaited third wave structure, (potentially its longest and strongest wave), the dynamics of which appear to hold great promise. And finally, the entire length of the base geometrically projected vertically, appears to set an interim target of somewhere in the realm of $8.00.
I will expound upon the wave count and some other points in a lot more detail tomorrow.
In support of this, given many of the perceived developments, improvements and renewed momentum of FNTN, that investors who are intimately familiar with the dizzying valuations of the Internet Leaders, might easily conclude that an emerging Financial or Specialist Portal such as what I assume Financial Intranet aspires to become, could well be considered to be exceptionally undervalued at these levels. For example: Comparing the quality of FNTN's Video with that of multi-billion dollar video leader, Broadcast.com (BCST), it is possible to come up with a very conservative valuation ratio, based on FNTN's initial run to $2.20, at around the time of BCST's IPO of 25:1. At today's price of $150, that values FNTN at $6.00.
And that's without any straight forward comparison of the ratio of Website hits ratio that give the Yahoo factor a value its almost insane value of well over $20 Billion, Vs the very rapidly growing number of Website visitors that Financial Intranet might attract in the near future.
That other conservative ratio alone could conceivably add many more dollars to Financial Intranet's share price. Again last week, there was a noticeable improvement in the price of many low priced web related issues. Further evidence that value is beginning to rain down on these issues from above and that they in all probability are coming under the microscope and scrutiny of many investors seeking standout values.
With the prospect of Financial Intranet about to become fully reporting, this will begin to provide Mutual Funds with some degree of accountability. If in addition, FNTN can deliver on its promise of revenues and earnings and the number crunchers begin to figure out how little money has been expended to get FNTN to where it is today, in comparison to the truly staggering startup and maintenance costs of most web related companies, these Funds are going to discover what most of us have already known for a long time: That FNTN is a highly compelling proposition and making it to the Nasdaq, should make it even more so."
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