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Hope
everyone is enjoying their long weekend. I know I'm happy to have an extra
day off from the market. On the other hand, clearly I felt something
was important enough to take a short break from my break, and take care
of a little business. What's the news? Just a notice to look
for Monday's newsletter shortly after the market closes. We've got
a new company profile coming out then.
 And
when I say profile, I mean just that.
We're
going to try something a little but different with this company. Where
we'd usually just come out and pound the table on a stock (which is
just an extension of our excitement), all we're going to do this time
around is introduce you to the company and put it on our watchlist
for possible action in the future.
The
goal is to let you get to know this company - and I mean really
get to know it - before you rush into a decision. You'll be able to
do your own digging, and ask questions.
This
will also give the company some time to 'prove' itself to us - and
everyone else. See, this organization is well past its infancy, but on
the verge of its next evolution ....a big one. We already like the
company quite a bit, and once it starts getting some traction on its next
era,
we suspect the right catalysts will fall into place and propel the stock
upward. So, when the time is right, we'll start leaning on the bullish
side of the fence with this name. After all, timing is still about half
the battle.
Anyway,
look for it on Monday. In the meantime...
With
the extra day of downtime - and following a wild ride last week for
stocks - we're finally getting a chance to squeeze in some needed updates
on a couple of our stocks.
 Remember
our Tenet Healthcare (NYSE:
THC) suggestion from
early November? When we looked
at the chart on February 25th, we were concerned about its inability
to trade above the $4.30 level. On
the 26th, we were thrilled to see the open at $4.75.
Since
then, THC looks like it's gone through a consolidation phase and is revving
its engines again. Thursday's close of $5.24 was the highest close of the
year, and almost the highest high (we saw $5.35 back on Feb. 27th).
Our
concern from the 26th of last month was the gap...the market doesn't
like empty spaces, and we were worried the sellers might drive this one
back down the 25th's high to close the gap. At this point though, we're
seeing too much support and upside pressure to maintain that pessimistic
assumption.
Instead,
our original target level of $7.67 is back on the radar.
As
for a stop level, the original mark of $3.17 seems a little inappropriate
now. We don't want to change it yet until we confirm there's enough support
here, but there are several key moving averages around $4.64. If the bears
take one more shot and still don't kill the uptrend, then we'll
talk about raising the stop to where those moving averages have become
entwined.
 I've
said at already but I think it bears repeating ...Smart Energy Solutions
(OTCBB:
SMGY) just won't go away, and I like that.
Back
on the 8th of this month we looked at how SMGY's long downtrend was
finally starting to crumble; a resistance line was breached, and the 50
day moving average wasn't quite as strong of a ceiling anymore. The stock
was at 24 cents the day before that edition...much better than the low
of 17 cents from mid-February,
Since
then, the progress has continued. We saw a close of 26 cents on Thursday,
and a high of 28 cents on Wednesday. I wouldn't classify that as a win
as big as San
Diego beating UConn, but the past four weeks have been the best four
weeks for SMGY in a long while. Why?
The
curious part - there really hasn't been any news to spark this newly-found
strength...at least none we've heard yet. I have to wonder though....
All
of you have seen it as often as I have - a stock headed higher for no apparent
reason. Then, anywhere from a few days to a few weeks later, the
gain makes sense when some big news is released. I don't know if that's
what's going on here, but like I said, I have to wonder of there's more
to it than we're seeing right now.
Or,
maybe more of the right investors are 'putting it all together' after
viewing the investor presentation posted on the company's website. Where
they are now versus where they think they'll be three years from
now is like a night-and-day picture. More importantly, the aggressive
projections seem plausible.
Anyway,
the 50 day moving average line has broken down as resistance, and the 20
day average line may be acting like support.
See
you Monday. Enjoy the rest of the weekend.
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the Editor
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