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There is a new BLOG posting
today on Hyperdynamics (AMEX: HDY). I am now calling it a must own,
if for nothing but a trade on what looks like a major pending development.
Those who have followed the story know HDY was at one time a big
win for OTC Journal subscribers. The company obtained the rights
to drill for oil off the West African coast in a deal with the Republic
of Guinea. The stock traded extremely well when seismic data and core samples
indicated a high probability of significant hydrocarbon reserves. In a
weird twist of bad luck, HDY was refused a permit when they applied
to drill test wells, and notified their arrangement with Guinea was off.
Well, apparently, it's back on, and the stock has been trading very well.
It could be good for a trade, and has a lot of potential longer term. If
you are new to this idea, go into the profiled company archive section
and read the past editions. You can find it on the left hand menu bar of
the home page. Also, you might want to go back and review the edition entitled
"Event
Driven Trading Profits" for some guidelines. Just Click
here. When I posted today's BLOG the stock was $1.90. As of
now (8 AM Pacific), it is $2.18.
To use the BLOG, simply go
to the home page at www.otcjournal.com
- the BLOG will scroll down automatically on the right side of your
screen. The most current journal entries appear in the middle of your screen.
Check back frequently for updates particularly when stocks are moving to
overbought or oversold levels or in volatile markets. Your questions and
postings do not automatically appear, so don't bother posting the same
question multiple times. I personally go through to moderate and respond
to every reasonable question.
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Callisto Pharmaceuticals
(AMEX: KAL) Entry Level |
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In the last few days I have received
a lot of questions concerning an appropriate entry level for KAL.
The recent surge in price and volume has attracted the attention of many
investors. Buyers understand something has changed with KAL- the
market is now very interested in this company.
Common sense should rule the day
here. Congratulations to the few who used the BLOG to get answers
to their questions. I have been saying I didn't believe it was a strong
buy over $1.50. After 8 scorching trading days, the stock was entitled
to pull back and take a breather.
Based on yesterday's action, I would
have to guess that the current pullback with be short lived. On February
9, 2005, I published an edition entitled "Why Charts Are Important", and
explained Fibonacci Retracement Levels. If you never read it, please do
so at your leisure. Click
Here.
The 38.2% and 61.8% retracement levels
reoccur constantly in nature. When looking the chart of a stock that has
moved up, I believe you need to look at the Fibonacci retracement levels
to determine a good entry point. It's a amazing how often these levels
become benchmarks.
The recent short term move in KAL
suggests $1.37 (38.2%) and $1.23 (61.8%) as the first levels
to look at. Yesterday, the stock tested the $1.23 level very briefly, and
rebounded as if shot out of a gun.
Since it's clear the stock doesn't
want to give us the $1.23 level, I believe the stock should
be accumulated at the $1.37 level right now, leaving some
cash handy for $1.23 if it ever comes.
Under $1.23 should also now
become your stop loss. If the stock trades down there and doesn't hold,
there is no telling how low it will go.
If you have a real interest in learning
more about KAL, CEO Gary Jacob will be holding a conference call
next Monday, December 12th, at 12:00 noon eastern time. In something rarely
done by the CEO's of public companies, Dr. Jacob will be taking questions
from any participant. Generally, questions are reserved registered analysts
only.
Callers in the United States may
dial (888) 428-4479 to listen and participate in the conference call. International
callers can dial (612) 234-9959. When prompted, please tell the operator
that you would like to connect to the "Callisto Conference" call. This
call is free of charge to all interested investors. In addition, interested
investors can listen to the call via streaming audio over the web at http://www.trilogy-capital.com/kal_conference.html.
The call will subsequently be archived for access via streaming audio at
the same web link.
Bottom Line: If you are not on the
KAL
train, $1.35 to $1.40 may be looked back at as a good entry
level. In light of all the volume that has traded in the last week, sellers
are being rotated out without the stock giving ground. For the time being,
this is a very bullish sign.
Also, keep an eye on their news releases.
There should be more positive developments in the hopper. There won't be
a weekend edition or response to any BLOG questions until Monday
as I will be travelling sans computer. If HDY blows off the charts
tomorrow, I may miss it.
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