Datascension is a recent new idea, and I’m very excited about the company. It’s strictly a numbers story. The company is worth far more than where it is trading.
Year end numbers are due out any day now. I’ll publish a complete review of both the highlights and lowlights. I expect a large number of non-cash charges to skew the bottom line, but I also expect to see a company that is cash flow positive from operations. Future quarters should bring net profits.
The stock has dropped $.10 since I first featured it a couple of weeks ago. No doubt market related. If this concerns you, you should be out of the market right now. We are going to see some stocks weakening until this market turns around. Please read today’s edition entitled “Short Term Traders Stay Out” for more info.
However, if you want to accumulate value, use the opportunity to sock away a few shares.
Here’s a link to the original presentation on the company:
http://www.otcjournal.com/archive/listserv/20050322-2.html
The chart presents an interesting picture:
This stock made it’s low last October at $.21. Since then it has seen a high of $.90. As measured from the October low to the December high the 38.2% retracement level is about $.47. This makes $.47 a good value and high probability entry point.
Look for a complete review of their year end numbers next week, including some thoughts about q1 performance and the future of the company.
DSEN is stealing lots of business from India, and getting lots of news business from Latin America.
Your comments and questions are welcome.
After studying the technical indicators and taking the present maket’s setiment into consideration, I am looking to buy this issue in the .37 cent range. I think it will get down there if and only if trader’s and investors stay as negative as it has for the pass week or actually two. It has been my experience that once a stock of this caliber drops below its 10 day moving average, you can almost bet, everyone will let this guy alone for about the next 3 months. The MACD has turned bearish and it looks to me like the RSI and the stockastics could turn bullish anytime. But for me, I need to see a bullish MACD. Also, the volume on this stock is, to say the least, eratic. That factor alone is why this stock should be moving up on all of the positive news this company is putting out there, but its not. Why? It is the whole market, I agree with you, it is spooked. I love these pull backs, I do the majority of my trading on these and this one just started! Some more talk of oil at a $105.00 a barrell and patience will help you steal some stocks. just my honest opinion!
Editor: Your technical contribution is welcome. I hope everyone reads it, and takes your thoughts into account when deciding if to participate.
Questions on two items: 1. How much overall sales experience does the new VP of Sales have? Should investors be concerned that she only has 3 years experience in the market research industry? 2. Any input into why the stock is so thinly-traded? Any chance it could move up to a different exchange, much like Hyperdynamics did this week, or is Datascension too far from meeting the necessary listing requirements?
Editor: Good questions. Firstly, even though it wasn’t disclosed in the press release, the company knew her numbers before hiring her from a competitor. They were outstanding, and she expects to do even better at DSEN. The company will start announcing the sales as they come in. The stock is very thinly traded because no one knows about the company, and the market environment is quite negative for microcaps at this time. Once the market picks up, it should trade much better. I’d like to see DSEN get an AMEX listing, but I’m pretty sure you are looking at least a year out.
Your response to Wally at the Blog for XNOM, you stated you had received comments that orders for DSEN have been a problem. I just wanted to say, that I have made 3 separate orders from Scottrade from 3/23/05 to 4/28/05 with immediate purchase completion.
Editor: Thanks for the input. The one I have heard is more of a problem is DSEN- if you get any feedback on that one, I’d appreciate it.
Any news on companies which will trade this stock. It seems Schwab still has it blocked for trading due to “churning” of the stock. Any ideas on the history of this “churning” of the stock.
Editor: I published on the stock for the first time in a while last night. Nice Latino contract. Much more to come. One offer from Schwab, and once that is gone it might trade much better.
IE my entry 5/15/05 – the 3 purchases I spoke of were for DSEN. I had quick respones from Scottrade.
Editor: What were the responses? Was it problematic to buy the stock?
Sorry for the long delay in resoponding. The quick responsed I reffered to, I was meaning the completed purchase of the shares I had requested – the trades were completed within 30-45 seconds from my entry. No problems at all. I didn’t know there was a problem tading this stock until I read it from your other respondents
Editor: Thanks for the update.
And it is now .36. Any comment on that?
Editor: Since I told everyone to be long term and not worry about prices short term, what would you expect my comment to be? Buy it if you like the company. Sell it if you don’t. But most importantly, don’t worry about the price at this point.
How about some sort of update. I got in on your newsletters suggestion at $05.9 and now it is sitting at $0.30. I continue to hear you talk about not worrying about the price but why would anyone want to buy at $0.59 and watch it go to $0.30 ??? At least make a comment please! Thanks, Chris
Editor: Sure- here’s my comment- if you are nervous about the stock and very concerned about the price, sell it and move on. If you like the company and want to hang in there for the longer term, hang on to the stock or buy more while it’s quiet and no one is paying any attention. Thinly traded stocks like this one always struggle in the summer. Things tend to change in the Fall.
Why have not you an opinion on HPOL ( Interactive Harris)? It seems to be a good investment.
Editor: Just a quick look at their numbers suggests the stock is undervalued. However, I don’t have a feel for their prospects for growth. This newsletter is mostly committed to microcap situations- anybody can find out about Harris- no one knows about DSEN. That is why the content has value.