NeWave simply partied like a rock star today. The stock made a 50% move on by far the highest volume day in its history, proving that the market does reward corporate performance.
The stock closed at $.27 yesterday, opened at $.34 today, and made an intraday high of $.47. The closing trade was $.405. The stock traded 3.44 million shares- which is absolutely astounding.
As astouding were their Q1 numbers- the company delivered nearly $4 million in sales and reported it’s first profit. This was up from about $1.2 in the same quarter one year ago. The market rewarded the company’s turn around approriately.
Here’s the chart:
Note the huge volume bar and the massive move in the stock. All in all, a very satisfying day for those who chose to hang in there on this former disaster, now turned microcap rock star.
Here’s my thoughts- if you want to own this streaker don’t jump in now. Late the lemmings go over the cliff. Use some common sense and let it cool down a little.
The 61.8% retracement off today’s move is $.335. If you think it won’t go back there, think again. It is a distinct possibility. A more important question- will you be paying attention when it is quiet and no one wants it?
I believe the stock is worth well north of $.40, but there will definately be profit takers and those who wish they got out before the big drop of last Fall. They will sell, and it will head back up and make them look foolish.
My thought- let this one cool off a bit. If it hits the 61.8% retracement it will be time to jump on it.
Comments and questions are welcome.
i am holding my 60,000 shares i bought at .32 cents, I thought about selling half at .46 but I feel .75 coming. We are making some money now!!!
Editor: Well done. I like your price target. If I were you, I would have sold 1/2 at $.46, just to buy it back when the stock quiets down. I believe it is likely we will see $.33 again as the floor. The next big surge shoud take us higher. This company is really rolling now.
Any comments on HDY!
Editor: Yes. The market is saying loud and clear that the only thing that will bring buyers back is a signed deal with Guinea. No more visits to Africa, audiences with his excellency, or visits from ambassadors are going to do. I believe the stock will continue to drift down over time unless they sign the deal. Based on experience from watching these kinds of things with other companies in the past, the longer it takes, the less likely it will happen. I have 5k shares at about $3.20, but won’t be adding to my position for now.
You indicated .33 as good entry point. Since it has fallen through this spot to .30, does this mean it will will fall further toward another support level or is this the time to jump in?
Editor: $.285 would be the lowest risk entry point I can find on the chart. However, this company has an awful lot of fundamental momentum. I hear the June qtr is going to be better than the Mar qtr, which was unbelievable. This is one where you are really just waiting for the market to recognize the company. Therefore, despite this atrocious market, we might not see $.285- I believe right now is a great entry level – if you want to hedge your bets take 1/2 a position, and keep your powder dry in case it drops. You can save the second part right into August.