Let me set the record straight so you and all the other newbies don't get burned by the pump and dump crowd.
1. At some point last fall/winter, HRT was included in the IBD rankings. These are computer generated and can serve as a source of investment ideas, but each one needs to be invesigated on its own merits.
2. HRT was incorrectly described as a software company that makes technology to detect heart attacks and sudden cardiac death. THIS, DESPITE THE FACT, THAT THE COMPANY HAS NOT SOLD ANY OF THIS TECHNOLOGY, HAS NO R&D, AND WILL PROBABLY NEVER SELL A SINGLE PIECE OF THIS SOFTWARE.
2. Honest IBD investors bought in on the strength of its ranking and the stock gained momentum which is a key component of the ranking.
3. The pump and dump crowd, seeing a small float stock, pushed it up and up.
4. At some point, the pump and dump crowd moved on to their next target.
5. Everyone realized that this is simply a small plastic modler and metal maching shop with 48 employees. True, it is small, profitable and is probably a nice small business to run, but it should not be a public company, has limited growth prospects, a deteriorating balance sheet, and tons of other questionable issues. Even if those things were corrected, it will still be a small business never anything more.
6. The price plummeted and many honest folks like yourself were left holding the bag.
I'd be happy to elaborate if you have more questions.
let me give you another perspective. investins fundimental view of the company is mostly correct IMO. everything he posted about the history of this stocks surge to 40 is probably right. but im not so sure about the software issue. the main focus of mngt is to save lives,not sell software. The software will go along with its sensor product sales. Micron only has few main customers (very solid) that buys the sensors. they have been focused on finding ways to improve the profit margin of these sales by reducing costs in manufacturing. It is stupid of mngt to focus on increasing cutomer sales at such a small profit, but when they reduce their costs (and they are), they will focus on increasing sales for a much stronger profit margin. now - the technical perspective. this stock is a trader for sure. its small float combined with high short intrest can be explosive. add positive earnings results, or any positive news, and buyers come in raising the stock price. the shorts will get squeezed out causing the stock to rise even more rapidly. when the stock becomes overvalued again (IMO, between 15.25 - 20.00)they will short it again and drop it back to the 10 - 12 range. If the longs get scared and sell out at these low levels, it could drop even more, Shorts at 15 is risky on positive developements. (any shoter at 12 or less will get burned.) big swings for big profits (or big losses) get the timing right and this stock is a money maker for sure. so, round and round she goes... where it stops?
Please tell us about the deteriorating balance sheet? Where is your factual analysis so we can all check and make decisions for ourselves. I think you are too opinionated which can be dangerous as the shorts who initiated positions during the last 2 months can tell you remind you.
What I do agree with:
1. It has a strong financial trend-DEMAND
2. It was sensationalized finding itself competitively ranked in IBD creating-DEMAND
3. It has a small float, which can cause explosive price movements and is susceptible to manipulation-SUPPLY
4. HRT price "cratered" and printed a triple bottomed on the week and daily charts.
Your response sounds nice... but do you care so much about the well being of us? Did you buy at the top? Your #2 point makes it sound as if poeple only bought because of a mistake in the company description? So all these people purchased without actually finding out what the company does???
I subscribe to IBD and know what you are talking about regarding the IBD 100.
Thank you for the simple answer on HRT's cumulative price dynamics. I would agree on it being bubble/mania status. As as far as your moving average test and resistance price level, I would ask you to be more specific. You say 200 at $20 and through induction you are talking about the 200dsma. I would caution any novice investors to understand there are other price levels I would do a stock checkup at before HRT test's $20 and the 200dsma. The 200dema is around $14.50 and HRT has not closed above the 100dema of 13.75. Price wise, the last daily peak was at $14.92 so I would want to see the stocks find support above $15 and next at $17 before a test of $20.