It seems there is a magical force in the Universe to which all things gravitate. I am writing this today to inform you EFSF has succumbed to the forces of gravity, and headed just where I thought it might head in a year end tax selling blow out (see the last BLOG on 12/14). That’s what a lot of these kinds of stocks do when shareholders have been disappointed by a shortfall in anticipated results.
Without further ado, here’s the chart. I’ve blown it up and extended it to make the gap as identifiable as possible. Look at the two green horizontal lines that delineate the gap, and its subsequent filling earlier today.
The stock has now officially completed a round trip from the level it was when I first wrote about the company.
That gap you see on the left side of the chart was created the first time I wrote about the stock.
Like a homing pigeon, the stock has flown back to its coup. Vacuum filled. Nature happy.
Fundamentally, all I can say is the company is improving. Technically, now is the time to swoop in and grab this stock if you are a buyer. You know all the facts about the company. I have certainly covered them over, and over, and over again. Don’t construe this to be my recommendation you should buy the stock today. There is a lot of controversy and disappointment, and you can read all about it in the archives. I’m saying now is the time if you are a buyer.
If you like the company and you want to own more stock, set aside your fears. Despite already owning 1 million shares which become eligible to be free trading next month, I might jump into 100k for a trade in the am. Since I own a lot, this would just be a trade for me. You might think a bit more long term depending on your goals.
Comments and questions are welcome.
Hello – is the company you refer to in your “new and exciting” blurb on the home page EFSF by any chance?
Thanks in advance.
Editor: Since I have been covering EFSF since Jan ’06, I hardly think it would qualify as a “new” idea.
We’re expecting your write up this week. What day do you figure to publish it?
Editor: You should check the company’s new release today. Tomorrow- after the market closes.
Are you expecting some clarifying news from the company this month in regards to their intentions going forward with a variety of their products?
Editor: At this point, we are just providing an overview of how several of their products will be the focus of the upcoming direct response campaign. I believe they have some products that have “wild card” upside- Citroxin with MRSA and bird flu- Oraphyte for Nematodes- however, if they can sell the current consumer products they have to the point of becoming profitable, they can take as long as they need to move these other products along without eroding share value. That’s why I believe the focus on sales of existing consumer products is absolutely critical to us as shareholders.
In your opinion, is the company aware of their shareholders’ monstrous frustration? Or are they so knee-deep in their launch initiatives and product testing that they’re rather disconnected from the realities of the outside investment community?
Editor: It seems to me that being knee deep in the launch initiatives is a great response to the frustrations of the investment community. There’s nothing wrong with this company that $10 million in sales won’t cure in pretty short order. That will give the company exactly what it needs to prevent share price erosion and put them in a position to eventually get these “wild card” products to market. In my view, they are doing exactly what they need to do. Last year’s sale’s direction did not work- these year’s just might work. Listen to the interview and decide for yourself.