I'll address d_ricardo's comments at the end. But here are my reasons why ADL will continue to rise for the medium term:
It’s sitting on a massive 2 cent gap.
It’s gone up on strong volume, which remains high.
It is fundamentally undervalued.
It just made a positive announcement, and more are expected.
It tends to find support and resistance in .06 increments (e.g. .06, .12, .24) - you can see it very clearly on a 3-year chart. And Wednesday it spiked through .12 to .13, suggesting that the next target may be .18. Which, as it happens, is a figure used by scgay. But certainly the spike suggests a move into new (above .12) territory.
It’s coming off a very long-building base – from June 2005. (19 months.) Its liftoff from that is now unambiguous.
d_ricardo:
I can't see a big order at .1 d_ricardo - I guess it's been removed. But either way, it can mean anything including (as cotboy points out) someone trying to drive the price down so he can acumulate lower. If so it obviously didn't work.
I have trust in scgay's analysis. He posted it here some time back and since then the price has shot up. (I.e. he was right.) The Speculator has been receiving these analyses from readers since 1973. This is the first time I can recall him publishing one and naming the author. (I've been a Speculator reader since 1987.)
Coming from one of the most astute (and cautious) judges of speculative stocks in the country, that's good enough for me. Speculator has a proven record going back to before most of today's traders were born. His stocks last year went up 196%.
ADL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
