PNWIF gave ground this week, dropping down to as low as $3.20 on a fairly robust 2 day sell off.
I was hoping this one would hold up going into the summer months, and thereby be positioned to go on to new highs in the Fall ahead of the rest of the gang. My hopes were dashed with this week’s action.
It’s all very funny when one considers this stock traded 800,000 shares in one day at $4.50 a mere one month ago as buyers piled into the stock when PhotoBucket was targeted by Rupert Murdoch’s News Corp.
Alas, the stock started drifting down on lighter volume about a week ago as Q1 numbers came out and investors were reminded this is still a fairly small company with a pretty hefty market cap.
Here’s the chart as I see it:
Here’s a weekly chart going back to the beginning of this stock’s meteoric rise over the winter.
As you can see, as measured on a weekly basis, the stock has given back almost exactly 61.8% of its gains- generally my target entry.
The stock now needs to hold in the $3.25 range, or start trading back up. If it doesn’t, we can look at some longer term time frames to find the next threshold of support.
However, if it does hold, this may be looked at as a great entry level as the bar has been reset.
There are two facts related to PNWIF worth remembering- 1. The company just received $15 million in financing at $3.60 per share with a warrant at $4. Those fairly sophisticated funds are at risk at $3.60. You can now pay less than they did. 2. I originally suggested this one at $1.80 back in September- you should still be in pretty good shape if you picked it up in the $2s.
If this $3.25 area does not hold, you have to decide if you want to hold for the long term or sell and preserve your capital. As long as it hangs in here or starts up, it’s time to load up again.
Can’t complain about a stock that’s gone from $1.80 ( 0.18 before the R/S) to its present level, even if this is about $1 below its all-time high. Wish all my stocks would do so well!
Editor: Yes- it was entitled to correct. Time to move forward from here. They delivered something good today- let’s see if it finds a little updraft.
Wow!! Got smashed today, decisively. Next stop $2.25 according to your chart. Any comments or knowledge on this stock. I own it at $3.45, so am not looking too good at the moment.
Paul
Editor: Was thinking of putting out a comprehensive edition on the company today. Technically, I believe the stock could be headed into the $2.50 range, so you have to decide if you would be willing to hold it down to that level. Fundamentally, could be a lot of new stuff going on in the next few months, so it’s probably worth holding.
I am wondering if it is a time to get back in. I noticed it has just run again.
The news since I last looked at it is great.
Editor: I believe I said it was time to get back in around $2.80 if you were prepared for the possibility of seeing $2.40. Heading the other way, and the stock looks to me like it’s gathering the energy to break out.