Saturday, October 9, 2010

Low float, low price, small cap, neglected...

Float: 7.73 Mil
Price: $1.51
Market Cap: 36.64 Mil
Short % Float: 0.10 (not high but would have liked to see this higher)
Neglected: Look at the chart above and see the four month falling wedge in which price coiled in tighter and tighter from June to September, volatility contracted and volume dried up.
EP: Price increased 27.97% on volume 15x the average 50 day volume on Friday.

I could not find any solid fundamental reason and more specifically earnings story directly linked to this price move except maybe that the stock is moving on the blow earnings announcement made by MOS on Friday. However, I am not sure.

At the very least it looks like it may be good for another leg up to the $2.00 and maybe even $2.5o resistance levels after some sort of low volume pull back or sideways move (i.e. bull flag, bear flag, pennant etc.). If this condition is met and risk/reward is greater than 3:1 based on the first resistance level I will look to take a swing trade in this stock. So I have added this stock to my list of speculative stocks. Perhaps it can find a place in your watch list too.

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