Tuesday, July 22, 2008

MKTY

Who (besides me) would buy a stock that is already up 40% today and 200% in the past two weeks?

TECHNICALS

Triangle BUY June 16th @ 0.87.


Targets 6 (50 day MA) and then 10-12 (resistance).


FUNDAMENTALS

Click images to enlarge.


Link to above story.


Link to above story.

Insider Buying Past Twelve Months


The Trade: MKTY has a market cap of slightly less then $20M. They have a proprietary fuel cell battery for small electronics that lasts months. They have deals going with U.S. Department of Energy, Samsung and an unnamed major digital camera developer. They have no debt and just shy of $2/share in cash. All of the above, plus insider buying and it's valued at only $20M.

While I try to figure out why, I'm in at $4.20.

A


13 comments:

MarkHolland said...

Reverse splits, years of underperformance, recent fund raising at less than desirable terms, etc. etc. etc.

I think the catalyst was the closing of the funding.

Allan said...

Still,on the surface this is not a $20M company, more like a $120M company. Look at MDTL, listed in Yahoo Finance as a Competitor of MKTY; MDTL has a market cap of $140M on revenue of $400K. MKTY has a market cap of $23M on revenues of $10M. Maybe not exactly an apples to apples comparison, but it's at least fruit to fruit and the discrepancy in valuation certainly looks tradable to me.

gary said...

Check WB today, look at all the volume. Bottom?

Allan said...

gary: bottom? et tu brute? i heard cramer screaming buy, buy, buy today. i'm reading on all the blogs and stock commentary sites calling the bottom and drawing up their shopping lists. Meanwhile, solar got clobbered today, energy down, agriculture down, down, technology down, down, down. does it really look like the start of a bull market?

curt504 said...

Allan, MKTY looks like another NNVC, a buy and hold, given it's just breaking the reconition barrier and insider buying indicating the company is turning the corner. You agree with a buy and hold or still just a swing?

tnx curt

Allan said...

curt: it is whatever you want it to be, only rule is not to let your gain turn into a loss. i'm holding mine, subject only to that rule.

Anonymous said...

Allan:

How do you use Japanese Candlesticks?

Do you do anything with astro-based computer programs?

What about W.D. Gann? I have searched your archive and cannot find anything on his work.

Fleet Admiral Thomas Rollins
San Diego

Anonymous said...

Allan - You nailed the initial move, but then it closed near LOD. You were up nearly 31% yesterday at one point, if you were fortunate enough to call a top. Your advice to another reader was not to allow this to turn into a loss. Did you sell yesterday? If not, can you share strategy?
thanks and keep up the great work!
Tim

Allan said...

Tim, bear in mind, this is not brain surgery, yes, i was up about 35% and salvaged about 15% upon exiting. Though it may seem like a lot to give up, we are consistently making money on these, 2 or 3 picks a week that I post, plus at least that many that I don't post. A lot of work, but, it beats wearing a suit and tie and suing people. Remember, only about 50% of these have to work to generate excellent annual returns.

Anonymous said...

I don't see this move being over yet. I'm actually pondering an entry here, I have a buy order a bit lower.

Allan - any thoughts on it continuing to move after the current pullback?

Allan said...

Look at volume. Average volume is about 40K a day. For Monday, Tuesday and Wednesday, volume was 118K, 378K and 251K respectively. Stock went up over 100% those three days. First hour Thursday, volume is barely 25K. If volume picks up, maybe something on the pace of 200K per day, it might be worth another spin.

Anonymous said...

Hey! No need to get personal - "A lot of work, but, it beats wearing a suit and tie and suing people." FYI - I am usually on the defense side. ;) Nothing wrong with a quick 15%. Congrats.

Allan said...

I need to do a Blog on how trading is a business. I did the one on how trading is like playing baseball, but the "trading as a business" mindset really takes the emotion out of the process and helps traders to ring the cash register every day.