new very speculative long positions: DGSE POSH
DGSE is breaking out of a flag pattern and closing at a new 52-week high, on very strong volume. This has been a very pretty chart since the move in June started. The intraday daily price action, huge accumulation, and max green BOP helped to create this pretty chart. The base was made on very quiet volume and with BOP staying max green the stock was looking pretty perfect. But on today’s breakout the BOP fell from max green to green. However, I guess with the RS line hitting a new high with price it is pretty much a break even event. The fundamentals are not very good, with EPS growing 33% this quarter after seven quarters of mixed results, sales grew 5% this quarter after an 18% slowdown last quarter, and ROE is 10%. Fund ownership stands at only 1 for the past four quarters. So obviously there is not a lot of interest in this stock, besides management which owns 79%. It is just a pretty chart. This is not a good long for newbie investors due to the poor fundamentals, non-perfect chart, and the low average daily volume. Cut your loss with a close below the 3.58 level, if the stock does not move higher immediately.
POSH is bouncing off the 50 day moving average and breaking out to a new 52-week high, on extremely strong volume. This stock started to become nice at the end of January when it took off on a blast of accumulation and max green BOP. As the stock moved higher, BOP stayed green and accumulation remained strong. It then settled into a base and then broke out in June. The move came on volume and green BOP leading to today’s breakout. The breakout came on extremely strong volume and with BOP moving to max green which should help the stock move higher in this market. The fundamentals are not good, with EPS showing nothing but losses the past two quarters and sales slowing down from very big growth the past seven quarters to a 10% slowdown this quarter. Fund ownership has stayed at 2 the past four quarters, showing that the big boys are not interested in this stock. Management, however, still has a 47% stake in their company. But this is not a good long for newbies due to the risk and low average daily volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
