Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > Other Topics > Business, Finance, and Investing
FAQ Community Calendar Today's Posts Search

 
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #11  
Old 11-20-2007, 11:16 PM
Ps3tn0NcYk Ps3tn0NcYk is offline
Member
 
Join Date: Oct 2007
Posts: 99
Default Re: First good idea

[ QUOTE ]
I don't really believe in TA and probably can't buy more DSUP from a portfolio balance point of view.

[/ QUOTE ]

This is a good example why having some TA skills in the tool kit can help as a text book application of TA would have had you out of the stock on the early Nov. break of $7.00.

A super simple TA system is currently predicting one of two outcomes:

1.) Based off the the September highs, price is going to mirror the initial 7.5 point drop from 14ish and trade down to about a buck-fifty

2.) Based off the the September highs, price is going to mirror the initial 50 percent drop from 14ish and trade down to $4.50.

In the case of the latter obviously price has reached the objective. Depending on any short seller-base in the stock, it may cycle a bit higher as bears realize some very healthy profits. In this scenario, I suspect some short covering will occur and eventually price will settle around $4.50 and churn sideways for the foreseeable future (it is a "rotten tomato" now).

In the case of the former, there is more downside as price begins to reflect serious liquidity concerns surrounding the company. This isn't impossible as credit spreads on junk issuers are soaring -- making it much more expensive for companies like DSUP, with upside-down balance sheets, to access capital at reasonable rates.

My guess is it trades toward a market capitalization of about $50 million (about $2.70 based on reported issued & outstanding shares) before either getting it's act together or getting delisted and vanishing onto the OTC-BB.

Good luck man. I'm pulling for you.

Reply With Quote
 


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 08:56 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.