Friday, July 11, 2014

good!

This is good! I looked through a bunch of charts from earlier. I remembered what I was doing when I started the blog. Among the first several where several interesting charts, but I kept going, and then there were a bunch that weren't interesting. Isn't that interesting?

And then there was another interesting one.

I checked the fundamentals. Interesting!

This is so often the case: a stock with a particularly interesting chart will have particularly interesting fundamentals.

It's a teeny, tiny, itsy, bitsy, minuscule, almost microscopic company: $1 million dollars in revenues. A very esoteric stock that you will not find on the big chart lists, ever. But it is a stock. Here's the thing ... I mean, it's a good, good chart, but I can't explain that, but it also trades steadily - not big big volumes, but steady trading, day after day, with an active chart pattern. That's interesting. Most lightly traded stocks only trade intermittently.

And then there's the fundamentals. Not only has this tiny stock produced revenues every year for five years, it has produced a profit in three of those years. I stand corrected. Sales last year were $3 million, and sales in four of the last five years were similar to that. What a record!

That's it. I haven't looked at anything else. Just this very good chart and those very good revenues and earnings histories. Don't know what they do - though I'm intrigued - or what their balance sheet looks like - but how can you make money with a bad balance sheet? - this is my version of reasoning.

Where is it going? Well, it will almost certainly slow down when it reaches its early highs, so, around $4, or $3. It's currently trading at .3, and should dip to .25, so that's a ten times return on your investment. But we don't know the earlier highs represent full value. It's an outside possibility this stock is already a great company, and the market will soon recognize that, and the stock will just go up and up. We well have to look for clues as time goes by.

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