For those of you who like PHCHF, it’s deja vu all over again from the sell off in CPNE two days ago.
Some of the stocks that have been trading very well of late are finally providing low risk entry levels thanks to corrections in an ongoing uptrend. Two great OTC Journal examples: CPNE and PHCHF.
Both have been rocketing up the charts in recent weeks without taking a breather. CPNE finally corrected two days ago. In the BLOG I called a perfect 61.8% retracement on Tuesday at $1.40- sure enough the stock is $1.65 as I write this BLOG.
Today, PHCHF finally succumbed to some selling pressure. It has simply traded too well of late, and was overdue for some profit taking. It has arrived at a perfect 61.8% retracement level.
Here’s the chart:
There are two elements worth pointing out on this chart. 1- the stock has pulled back to a near perfect 61.8% retracement of the September move. 2. It pulled back on very low volume.
These are two elements which suggest it is currently at the perfect purchase level: as you can see from the chart is it $.1996, or right around $.20.
If you like this one, and either want to establish a position or add to an existing position, technically now is the time.
Comments and questions are welcome.
At what price would you consider taking your profits?
Editor: One of two scenarios. First, in the presentation I gave a specific price objective of $.40 to $.60 when I published on the company. That still stands. I would sell some or all if and when the stock gets there. Second scenario- it the company delivers some ground breaking news, and the stock makes a big, spiky, short term run. I always sell into those kinds of moves. I might buy it back when it settles down. Also, I reserve the right to sell if the company doesn’t continue to grow. I also might sell some if I need the money, but that would have nothing to do with the company.Â
Do you have any idea what the lag time typically is for companies from when contracts for services and signed to the time that revenues begin to show up in the bottom line? I know that the contracts PHCHF has been signing won’t show revenues tomorrow, but I have no idea what the typical wait time runs.
Editor: PHCHF has a recurring revenue theme, which I love. Once the system is up, it generates revenues everyday. It does take some time for the retailers to advertise and get people geared in to using the internet uploads and developing feature, but revenues are now coming in every day. It is also seasonal- the Holiday season is huge in film developing. Look for more retailers to sign on – big names- hoping this month is big for the company.Â
Today is 11-1-06 and they (PHCHF) announced a 1-10 reverse (which we knew) and you have no comment about it!!!!!!!!!
CMONNNNNNN!!!!!!!
I used to have a stock chat site of my own(in the late 90`s)and would have been on top of this within minutes of the announcement.
And after signing the NDA which `
Editor: Apparently, you didn’t read yesterday’s edition. http://www.otcjournal.com/archive/listserv/20061101-1.html
Despite having already covered it, there is a snafu- it didn’t reverse today in the US, and the stock is trading great on this morning’s news. They will have the situation rectified for tomorrow’s open.
This company is great. It reminds me of a company called Digital River that I followed 5 or 6 years ago. Sadly, I did not hold on to their stock. But I’m going to hang on to PHCHF as long as it make sense. Their management team is top notch – CEO is an MIT graduate and the VP of Sales and Marketing played professional football (which means that he is a team player and a people person). There is a securities lawyer on the board of directors so they should manage their stock well. I liked when they declared the warrants/options for their officers so they are definitely steering clear of any “back dating” scandals. I have been following this company for about 8 months and I can’t find anything negative to say about them. – top notch company in a growth market. The place to be.
Editor: They have a lot going on. There is a bit of a SNAFU in the reverse split. Going to write a BLOG on today’s goof up right now. Catalytic events for new highs coming soon.