|
Hello fellow investors / traders,
I hope you all had a relaxing long weekend and Easter break. I was hard at work looking at hundreds of charts and analyzing company fundamentals/SEC filings.
All to bring you the most profitable trade setups, of course.
Anyway, please take a look at WebXU, Inc (WBXU) today.
There are 3 (very good) reasons why I like WBXU for a trade.
#1 - The Chart / Technical's
Just take a look at the chart and it basically speaks for itself.
It is grossly oversold, having retraced 100% from its pre-run up levels back in February. And its RSI at 31 says the same thing - oversold.
The next thing you will notice with the chart, is the multi-month support levels of $0.01.
Yes it dipped just below this in February, but only for a very short time. Other than that, the last time it traded below this support level was back in November - again, only just under, and only for a few days.
WBXU is very well supported at $0.009-$0.01. The perfect launching pad for a bounce and possible short squeeze higher.
#2 -The Fundamentals
For those not too familiar with fundamental analysis, let me explain it this way.
Most companies trading on the OTCQB/Pink Sheets have a market cap in the millions, many in the tens of millions.
A market cap as low as WBXU has ($289k) is very rare. Value investors will be bargain hunting WBXU at these "cheap" levels.
Some of my biggest alerts have come from companies with tiny a market cap like WBXU has.
This essentially means that WBXU should be trading almost 10x higher than what it is now!
#3 - Management
WBXU has an insanely strong management team, led by its CEO/Chairman Matt Hill - MUST READ
Mr. Hill has been
at the forefront of Internet marketing since the late 1990's. During the
1990's, Mr. Hill was one of the original founding investors and employees of
Shopping.com which sold in 1999 to Compaq for $220 Million. Mr. Hill worked
with Prime Ventures and its portfolio of companies, including serving as
Chairman of SuperNation, LLC, overseeing its acquisition in 2003 by Intermix
Media, formerly EUNIVERSE (AMEX: MIX).
In 2005 Mr. Hill founded the E-Commerce
entity Shopit.com, which he sold in 2009 to Atrinsic, Inc. Mr. Hill, serving as
President, sold his most recent Internet brand services venture Adjuice, Inc.
in 2010. Mr. Hill has served as an investor in Reunion.com, Realty Tracker
(sold to Guthy-Renker in 2007), Demand Media (NYSE: DMD), Weblo.com, Vator.tv,
Dolphin Search, Consumer Direct, Hollywood RX, and F3 Family Entertainment. Mr.
Hill holds a BA in Economics and Communications from Boston College.
How is that for a resume? Very few micro-cap company's can boast having a CEO with these kinds of credentials.
Now I think I have outlined a good case for WBXU to move higher off these current levels over the coming days, maybe even weeks.
The only caveat to my theory above is that if support at $0.009 - $0.01 does not hold, and we break down through this level, all bets are off.
Yes, it could fake a breakdown and then bounce higher, but it is important to stay disciplined and use stops - just in case. You can always re-enter a trade at a later time, be it minutes, hours or days.
I hope we have a profitable day in the markets.
ShiznitStocks.com
Disclaimer
Never invest in any stock featured on our
site or emails unless you can afford to lose your entire investment. For full
disclaimer click here.
ShiznitStocks.com employees are not registered as an Investment Adviser in any
jurisdiction whatsoever. The disclaimer is to be read and fully understood
before using our site, or joining our email list. None of the materials or
advertisements herein constitute offers or solicitations to purchase or sell
securities of the companies profiled herein and any decision to invest in any
such company or other financial decisions should not be made based upon the
information provide herein. Instead ShiznitStocks.com strongly urges you
conduct a complete and independent investigation of the respective companies
and consideration of all pertinent risks. ShiznitStocks.com does not offer such
advice or analysis, and ShiznitStocks.com further urges you to consult your own
independent tax, business, financial and investment advisors. Investing in
micro-cap and growth securities is highly speculative and carries and extremely
high degree of risk. It is possible that an investor's investment may be lost
or impaired due to the speculative nature of the companies profiled. Any
statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, goals, assumptions or
future events or performance are not statements of historical fact may be
"forward looking statements". Forward looking statements are based on
expectations, estimates, and projections at the time the statements are made
that involve a number of risks and uncertainties which could cause actual
results or events to differ materially from those presently anticipated.
Forward looking statements in this action may be identified through use of
words such as "projects", "foresee", "expects",
"will", "anticipates", "estimates",
"believes", "understands", or that by statements indicating
certain actions "may", "could", or "might" occur.
Understand there is no guarantee past performance will be indicative of future
results. In preparing this publication, ShiznitStocks.com has relied upon
information supplied by its customers, and press releases which it believes to
be reliable; however, such reliability cannot be guaranteed. Investors should
not rely on the information contained in this website. Rather, investors should
use the information contained in this website as a starting point for doing
additional independent research on the featured companies. The advertisements
in this website are believed to be reliable, however, ShiznitStocks.com and its
owners, affiliates, subsidiaries, officers, directors, representatives and
agents have not completed any due diligence or research on the companies advertised
herein and disclaim any liability as to the completeness or accuracy of the
information contained in any advertisement and for any omissions of materials
facts from such advertisement. ShiznitStocks.com is not responsible for any
claims made by the companies advertised herein. ShiznitStocks.com may receive
compensation and its employees and affiliates may own stock that they have
purchased in the open market either prior, during, or after the release of the
companies profile which is an inherent conflict of interest in
ShiznitStocks.com statements and opinions and such statements and opinions
cannot be considered independent. ShiznitStocks.com reserves the right to buy
and sell shares of the profiled company on the open market before, during or
after the release of the company profile. In such an event, ShiznitStocks.com
will not update its disclaimer to reflect any shares bought or sold on the open
market during the profile coverage. ShiznitStocks.com and its management may
benefit from any increase in the share price of the profiled companies and hold
the right to sell the shares bought at any given time including shortly after
the release of the companies profile. An affiliate of ShiznitStocks.com has
been compensated two thousand five hundred dollars from a non-affiliated third party for the
profile of WBXU. ShiznitStocks.com may on occasion accept compensation in
restricted or free-trading shares for it's marketing services of the company
being profiled, and the third party that might have compensated ShiznitStocks.com
may hold free-trading shares of the company being profiled and could very well
be selling shares of the companies stock at the same time the profile is being
disseminated to potential investors; this should be viewed as a definite
conflict of interest and as such, the reader should take this into
consideration. If ShiznitStocks.com ever accepts compensation in the form
of restricted or free trading shares of the company being profiled and decides
to sell these shares into the public market at any time before, during, or
after the release of the companies profile our disclaimer will be updated
accordingly reflecting the current position of those free trading shares
received as compensation for our services. |