Last week was one I would like to forget. Small stocks tanked. There were no bids around, and positions associated with the demise of REVCO made the market as ugly in one or two days as I’ve seen it in a long time.
On Tuesday, the 18th, KAL was trading quietly at reasonable $1.40- making it an easy hold. A 50,000 share market order sent the stock careening down the charts- the order could easily have been associated with the REVCO liquidation. It made $1.05 in short order.
The stock held that $1.05 level twice, and is now starting to rebound. Nothing has changed at the company other than a very tough October- I still like it for $3.50 to $5 over the long term. Clinical data is what the market needs now.
I now know $1.05 is the perfect level to own this stock. However, since it tried to get below that level twice, and wouldn’t break below, I don’t know if we’ll be lucky enough to see it again.
As I write today’s BLOG, the stock has rebounded to a modest $1.20- $.10 below our original entry level, but not a major catastrophe. A little volume should go a long way in this one, and the $1.50 could be revisited on one good day. Hopefully, that day is coming soon.
Comments and questions are welcome.
Looks like the trading in Kal has stabalized in the 1.15-1.24 area. Would like to see some news come out of KAL to get the volume up a bit. Anything new on the company on your end? Mike
Editor: I believe we will have a lot more to report on KAL starting next week. I like this company a lot, and plan to stick with it for a very long time.