Tuesday, September 09, 2008

NNVC - Update

NNVC has fallen just short of 20% today and many of you have written me asking for my take.

Longer term, everything is fine and NNVC can drop to the 50 week MA which coincidentally is channel support, all around 80-85c. Shorter term there was a Triangle Sell on the Daily chart at $1.22 on September 4th. Unless you are trading in and out of NNVC, this decline should be ignored, expecting 80c to hold, if it gets there, and the entire decline to eventually be retraced.

NNVC, with it's small market cap and low liquidity is an easy stock to take down by a few decently capitalized short-sellers. On one of these decline-events, the Company could make an announcement that will take the stock up 100% or more, wiping out the short-sellers that have plagued NNVC for so long. We now know enough about the Company to render such an announcement to a question of when, not if.

I'm a Buyer of NNVC under $1.00.



Anonymous said...

Allan, When will you post part 2 of the fireside chat?
Thanks, Doug

Anonymous said...

I'm glad I saw your post about the drop. I picked up some for under $1.