Many commentators write about the importance of timing the market. But sometimes its not so much about timing, but rather of "time in". I first wrote about ACU.V back on July 18th of this year, just shy of five full months ago. At that time ACU was trading around 15 cents:
In that posting I expressed a bullish opinion that was based on a near total absence of Promotion, News, and Hype. On top of that I really liked the way the chart was setting up. I saw a base pattern in the 14 to 15 cent range and had started a position at 15 cents and speculated that the stock might be undergoing smart money accumulation, that is to say big market players buying low while things were depressed and quiet.
Not long after I wrote that blog posting, the PPS fell to less than 10 cents, so much for timing. I did take advantage of that drop and added the exact same dollar amount as I had bought at 15 cents, thus lowering my cost average to 12.5 cents, but at 9 or 10 cents I was still underwater.
In Sept/Oct/Nov the PPS did recover, getting back up around 15 cents before settling in and around 13 pennies. That is until December 13th when the company released news about an order from LG electronics.
The two sentences of news contained in that release seems to have been the cause for an explosion in both the PPS as well as volumes. ACU traded more than 8 million shares over the last two days and the PPS climbed from 13 to 19 cents after reaching an interday peak of 21.5 cents.
Regular readers know my favorite saying, nobody has ever gone broke taking profits. I myself sold 10% of my holdings today at 20 cents, 60% gains are nothing to sneeze at. But I think there is potential for even more upside here. With that being said, ACU has moved up in a fast and furious manner, so it would not be unreasonable to expect a pullback.
Do take note of the 50 and 200 day moving averages (simple), the 50 is taking dead aim at crossing over the 200, which is called a Golden Cross among devotees of Technical Analysis. A Golden Cross can be seen as a potential harbinger of a clear sky break out to a new and higher trading range. Assuming ACU.V does break out even higher I think it is reasonable to expect resistance in the 30 to 35 cent range where the PPS traded for a long time over the past several years.
Do take note of the 50 and 200 day moving averages (simple), the 50 is taking dead aim at crossing over the 200, which is called a Golden Cross among devotees of Technical Analysis. A Golden Cross can be seen as a potential harbinger of a clear sky break out to a new and higher trading range. Assuming ACU.V does break out even higher I think it is reasonable to expect resistance in the 30 to 35 cent range where the PPS traded for a long time over the past several years.
As noted in a blog posting I just did on short interest on December 5th just past, ACU.V only had 2,000 shares sold short current up to November 30th. However back in August that number did shoot up over 100K, which in my opinion was quite likely an effort to "shake the tree". For those unfamiliar, shaking the tree involves shorting a stock in an effort to shake free shares from overly nervous and price sensitive retail shareholders.
If it happened before it can happen again.
Do note my opinions are biased as I am a shareholder and ACU does represent a highly speculative stock, that was true at 10 cents, at 15 cents and is equally true at 19 or 20 cents.
Good luck
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