►► If RCON's accounting meets accepted practice price appreciation should occur
Explanation: Often low float stocks like RCON break higher because of accumulation of the small float followed by large bids exciting traders/investors. Those breakouts typically sell off hard. Today however RCON posted solid earnings news (growth) "if" the accounting is in line with accepted practices RCON should start trending higher. That's the rub "if" the accounting was in line with accepted practice. Not yet knowing what type accounting practice was used most traders/investors made a wise move booking the profits.
Use due diligence here and find out if the RCON earnings report is based on accepted accounting practice... if so look for a trend to start RCON share price moving higher into the next earnings report. The 52 week high of $4.58 should be replace with new 52 week highs "if" the accounting used by RCON is accepted practice by the rest of the world.
It would be nice to see Seeking Alpha do a piece on the accounting employed here. It would be a start in Seeking Alpha gaining lost credibility back.
This is a good point you are writing here. There is other good ones to consider....
1- Stock has not yet been picked up pis big traders and institutionnals, which will drive the price
2- 1,6 mil volume today, which means lots of shares changed hands
3- 4 mil O/S which is soo low. It means they havent financed projects by dilluting and they are having better revenues and the best is yet to come...
4- They are in China where there is beter growth opportunities over there then here over time.
5- They are in a sector that is going to explode soon with demand rising all over the place...