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December 1, 2005
Returning to LEXR and LLTC, Thur., Dec. 1, 2005, 11:37 AM
A reader has asked me to revisit LEXR and LLTC. I really wish I had more eyes, more keyboards and fingers to work them. :-)
Bill: Again, I think you should revisit your recent blogs on these companies. LEXR touched $9 today, and LLTC continues to move steadily higher since your recent blog. What I think is really interesting is that there is no unusual volume and they may be flying under the radar. I feel sure that each is going to be a story stock in the coming weeks " just don't know what the story is. I could speculate that LEXR is a take-over candidate and LLTC is going to have very positive earnings news for the current quarter. We'll see;;./T "
How about that LLTC since I called it a couple weeks ago? Wow.
What makes me nervous is that traders are ignoring RSI, and they may fail to lock in profits. I try my best to explain how markets work, and how to trade them, but I can't stay on top of every move.
LEXR is a terrific small company in the hot flash memory space. From what I can see, management knows how to exploit its technology, and I do feel there will be a take-over bid at some point. But these stocks don't go to the moon.
LLTC is a much bigger company " on the Cara 100 list because of superior management for a large company. This is all about having dominated markets for old technology, as I see it. But to me, it's just plain common sense that a company that executes so well ought to have its shares bought whenever the daily/weekly RSI dips well below the 50-line.
Again, that's no longer the case. I like to ring the cash register when the RSI gets over-bought. Typically the sell-side will report glowing quarterly operating results, and then distribute their proprietary positions into the subsequent market rally.
Since you don't create fashion, or end it, you (the Little People) are at a tremendous disadvantage to Wall Street (i.e., the sell-side), so you need to do your own research. Your edge is in the numbers.
And sometimes those numbers are telling you to sell, even when you really like the company, and you see all those positive opinions from Wall Street analysts.
Posted by Posted by Bill Cara on December 1, 2005 11:36:10 AM | Category: 45 Info Technology