Technically EFSF is acting like a champ. Of late there hasn’t been much fundamental news, but the stock is simply taking off and made a new post OTC Journal coverage high today.
So, what are the chances of EFSF taking off like CPNE and PNWIF?- not just making post coverage highs, but making new all time highs on both the technical and fundamental side?
Let’s look at the fundamental side first. On the fundamental side this company will definately be making new all time highs on the top line. How do I know? Because they simply can’t go any lower than they have in the past. Cinnergen (look in the archive section if you want to read past articles concerning their products) is their first commercial product. It is being advertised nationally in short TV spots, and being picked up by retailers all over the place. By the end of March, they expect to have the product carried in over 10,000 retail locations.
Behind Cinnergen they have the Pur Effect product introduction coming, the Cholesterol product, and Oraphyte on the bio agri side. Therefore, it is reasonable to assume the top line will continue growing quarter over quarter for the foreseeable future.
This past week’s action in the stock makes the technical side very interesting. Frankly, it’s causing me to rethink the potential for the stock. Readers know I originally pegged the short term target price at $.30. It traded through that level far too easily and quickly, which caused me to raise the target to $.40.
This week’s action caused me to take a very long look at the possibilities, and here’s the big picture:
This is a weekly chart going back to when the stock opened for trading- at least as far back as my software goes. It measures the price movement week by week. The daily is too noisy to go back three years.
The blue line is the multi year trend line. As long as the company continues moving forward and the market for micros holds up, I believe this stock has a date with the trend line. At this point in time it would be around the $.50 level. The longer it takes, the longer the trend line extends, and the lower the price.
I believe getting to that trend line is pretty much a done deal. Far more interesting is what will happen when it gets there. If it can break the long term trend with volume and conviction it will be a whole new ball game and a dream situation.
One thing we have going for us- the company has no long term debt and no equity financing in place. It was all done some time ago, and it’s all over with. That is one reason the stock is trading so well.
Once the stock gets to the downtrend line I believe it will break out if the company is delivering catalytic events on the product introduction side.
Does this mean you should run out and buy it today at this new multi year high?- If you already own it or not, keep some money handy for a pullback, but a position at this level is fine as long as you realize there could be a correction again. Keep checking the BLOG for a good entry point.
Comments and questions are welcome.
I think you found a golden opp here. this stock is the kind of stock that one trys to find at such low levels. This stock can make one rich in time. Just think what a million shares will be worth if the stock goes to 5.00 one day.
Editor: I’m not even close to predicting those kinds of numbers. Remember, there are over 130 million shares I&O. The company has never delivered a commercially successful product to the marketplace. That having been said, they have enough different unique products to give us a great chance- if they just they hit on 90% of them anything is possible. We have to go through $1 to get to $5- so let’s see where we are when we get there.
Is the short interest in this stock of any value to longs in terms of taking out their stops? The last report was 17.2 million shares short. Thanks so much in advance.
Lewis
Editor: Many years ago I gave up on the idea of trying to gauge the short interest and drawing any conclusion about where the stock might trade. I look at fundamentals and technical indicators. If the chart tells me there are buyers, I can pretty much tell we’re going higher. Generally, big, spikey runs over a couple day time frame on huge volume are the result of short covering, and make for great selling opportunities. If you simply have buyers, it never trades so crazy- see CPNE. Just deliver sales and earnings, and all problems go away.
You guys are pumping this stock…with only 4 employees,ad all pr’s….lol
Editor: I suppose you could look at it from that point of view. That’s the glass half empty view. The other side- they outsource all their manufacturing needs, so they don’t need a big staff. That means they won’t need to raise capital any time soon and pollute their market with cheap stock. Regardless- if they sell a lot of Cinnergen or Oraphyte the stock will go higher with 4 employees than with 40 employees. If you are concerned, sell the stock. You should have nearly doubled your money by now.
Have followed this stock for 2 years and 2 months, it is time to load the wagon. I have loaded my wagon full. Go to efoodsafety.com and read company news that is the best way to learn about all of its products, and human testing the have going on. This is my opinion only.
Editor: Thank you for your contribution. This stock seems to have a very loyal following that has been patient for a long time. Let’s hope this is the year to really get rolling.
I think you have hit the nail on the head and you are going to make a lot of money being long EFSF.
Editor: I certainly hope you are right.
Your journal is outstanding!!!!!
Editor: Hope you still think so when we have a loser or two. It will happen.
Please clarify if this is a good entry point to get this stock at this time or not.
Thanks
Editor: I don’t think it’s a good entry point. If you read the last BLOG, you know I stated technically $.285 was good, $.245 was perfect. If you don’t own any, I would suggest just a partial investment at this time so you can add to it if there is a correction, and have some if it runs up more. You should be in the accumulation phase on this stock right now, but you have to be smart about it. Don’t jump in all at once.
If the stock doesnt retrace then trades up to .40 should we not get in and miss the move to the trendline of .50? That just doesnt make sense does it.If this stock is as good as you say and can one day go up to 1.00 isnt it foolish not to be in here at .35?
Editor: Who said not to be in? I just observed the stock has made a big run, and this might not be the ideal time to buy technically. That was last week when I told everyone to buy at around $.28. What I did say- take a partial position at this level and keep some money on the sidelines in case it pulls back.
any thoughts on a buyout???
Editor: Ask me again when they have real sales going. For now, not even worth thinking about.
I saw a Cinnergen commercial on TV today for the first time. I see nationwide commercials on major networks as a very positive sign. It’s already past your recent target of $.040. I wonder if it will go close to $1 by the end of this year.
Editor: If it does, it will be because they deliver significant growth in sales and earnings.
1 dollar easly. Their oraphite patent should be out in a very few months. Their pureffect product should be out in a few weeks. Also they are doing testing of their citrixin product. The citroxin product can be used against the Bird Flu virus. That is now being tested in Thailand as we speak. This is a grand slam product. Load the wagon. This site is the best.
Editor: It is inevitable this stock will break the very long term $.50 downtrend line at some point in the future. Whether it holds up from there will depend on whether any of your above mentioned products really get revenue traction. My only concern at this stage- Pur Effect- the infomercial people have had this for a year, and there still is no concrete movement. We will see on that one. The beauty of this company- multilple potential engines.
How many shares are still shorted on EFSF?
Editor: I have no idea, but the way the stock has been trading, there appears to be a short squeeze.
Comments on the 77% move in the last 2 weeks? You still sticking to .40 target?
Editor: Comments over the weekend. As expected, the stock went straight to the long term downtrend line and reversed. It will break through it someday. It just got there a lot faster than I thought it would.
Do you think they deliver significant growth in sales and earnings. With all the new retail outlet that should be easy to do. What about the Oraphyte deal that should be a real money maker to.
Editor: More to come on Oraphyte- that could be a blockbuster for the company. Love the way this stock is trading. It keeps making me raise my target.
Well the stock hit 50 cents today which is your multi year trend line. There has been no news from the company since the news of the article being written, and the volume has been awesome, what is your take from here if the company comes out with some news on one of their products, seems to me that we could see a dollar way before the end of the year.
Editor: The long term downtrend line will be broken sometime in the not too distant future. This one has just been too easy. It keeps making me raise my targets. Any sales traction should yield $1.
Will you be raising the target price and SSL in the near future? This is doing well and believe it has a way to go.
Editor: Will revise everything in short order. I am a little behind on content right now, but should be caught up by tomorrow.
Where to from here (.495). Seem to me this lil guy must be due for some sort of a correction. What are your thoughts?
Editor: Correction is long overdue and happening today. The stock went straight to the long term downtrend line and backed down. However, in my view it is inevitable that downtrend line will be broken to the upside sooner or later. More over the weekend.
Can you please ask the company to put something on the http://www.pureffect.com domain? The blank page is getting on my nerves.
Editor: No problem- will ask, but it’s up to the marketing company.