What a disppointment yesterday was. US Energy, a company that has developed a revolutionary fuel saving hybrid technology for diesel engines, hit the motherlode, and the stock fizzled on mediocre volume.

In life, they say timing is everything. Back in May, US Energy announced a lousy $50,000 order from the State of NY, and the stock traded nearly 4 million shares and made a new multi month high.

Yesterday, the company announced its technology would be included on trucks manufactured in the Far East by GM, and the stock basically did nothing. If this had come out in early May I am quite sure we would be at much higher levels.

I guess in a perverse sort of way, the fact that it didn’t go down was a victory of sorts. The current mentality is “cash at any cost”, and that is just plain stupid.

Today, just prior to the open, USEI announced the acquisition of Automated Engineering Corp. This is the company that supplies the “brains” of their technology. It would appear Automated will be getting big order flow from USEI- so why not buy them?

Here’s the chart:

As you can see, there was a little volume blip yesterday, and a lame attempt to move higher.

Little Ado About Everything. USEI got a 1500 retrofit order from the Far East. GM will be using their technology in new vehicles. They just bought their biggest supplier- could it get any better?

My SSL (suggested stop loss) is $.29. If you are only in this stock for a trade, you should probably sell it if it gets down there. It is really the only stock I cover that hasn’t hit its traders stop loss.

If you are a longer term investor, this one looks really good for a move higher in an improved market environment.

Comments and Questions are welcome.