The wild volatility of UEPS is slowing-- and I'm sure there are a lot of day traders taking some profit (smart longs) and wanting to move on to the next money maker. However, I would suggest you stay in Net 1 for a while longer-- even a few weeks. I think you will have a slow but steady return to the $5, $6, $7 even $8 dollar level-- (not a bad return for a few weeks time). I like to look at the worst case scenaro against Net 1, the premier payment processer for frontier markets worldwide-- in the event it is gound guilty of all allegations. What happens? UEPS pays a fine-- probably around 1 or 2 million-- and back to business as ususal. The allegations against Net 1 is just being made by a jealous competitor with an inferior product which continues to lose business against Net 1. The contracts Net 1 has with the SA government would never be revoked. The sad truth is that business can not get done without bribes in Africa, it is just the way it is, makes China look squeaky clean. I'm looking at the worst case scenario here, it is more probable, UEPS denies it did anything wrong, no smoking gun exists, and UEPS continues to build the best frontier payment processing system in the world as its investment in recent years continues to payoff. Stay long, don't be tempted to sell, we easily reach $7 by the end of December.
Nice step in the right direction for UEPS today, I might take some profits at $7 next week, and let the rest ride to the 8 or 9. UEPS is in a stronger position now then at any other time in its history, steller product, strategy, and execution. I continue to add to my position in TITN-- get in now, we are going much higher -- TITN is very well positioned, expect a huge short squeeze in coming days/weeks.
Technically, we had a good run today-- should close around $5.00. Absolutely stay in UEPS as it will simply continue to rise and momentum builds in coming weeks. No downside here, as the initial sell off was absurd and overdone-- and UEPS should have lost at most 1% even if the allegations of bribery was true-- again it will simply pay a fine of 1 million and continue business as usual. Expect UEPS to be trading $7+ at the end of next week. Also, check out TITN-- very strong buy at these levels-- easy run to $30.
Also, guys and girls-- check out TITN. It just broke some major resistance levels and earning were great today. Very good buy, just like UEPS. Trust me-- TITN is going much higher, don't miss the boat.