you are correct. 6 seems to be a resistance point as it represent a high in the past couple years. the base has been gathering strongly around 5.9-6 range with little or no selling interest. Hopefully with some good news we can see another pop...
From a number point of view. adam's share should be around 8 if we assume a 40c earningshare with a 20 pe.
If saba's revenue came in at 12m then we would see about 20-35c/share for next fiscal which should push us right to 7-9 range. If they can come in over 14m each quarter in fiscal 06 then we will definitly see 40-60 c/share with the stock should be valued around 15...
I was looking at ADAM from a technical perspective. The chart is looking sharp so I might end up taking a position in them. They have a nice bump today after taking a bit of a fall two days back. I need to get down their fundamentals a bit better though since I don't have a sell price for them yet and I tend to feel more comfortable in a trade when I have a better idea of their price.
For SABA, 6 is looking like resistance again and volume is drying up so I suspect it is off the momentum radar so a strong base in this range would be encouraging for me.
One thing concerns me about adam is that they had a recent change in accoutning firm and brought in an outside director for their auditing committe. This usually indicated some kind of finaincal misstep. I'm hesitate to jump the gun before the 2/15.
It's also interesting to see 6.00 has changed from a resistance line to a support line for saba. about 30k went through at that level without any affect which indicates to be mm is filling their inventory rapidly for the next move up...
Unfortunately I've been looking at ADAM for too long! 6 years to be exact and recall it's meteoric rise from 2-44. It's popped back up on my screen and although getting in earlier has shown to be the correct play I didn't take much interest until the volume started breaking 100k.
I've to admit that I do not have a reliable source for this info. You could be right the only way to hold it is for cash account and certificate.
The volume is getting extremely thin again with small trades going by the screen.Hopefully this a sign that the day trader is loosing interest that we can go back to the fundamentals of this stock and let its own profits and cash flow to be the determination of it.
take a look at adam. It's quite interesting as well...
I realize the margin issue, however the point I was making is that it's my understanding that setting a high limit doesn't prevent shorting. Simply because you put in a sell order for 12 doesn't prevent the broker from loaning out your shares, afterall they could take the other side of your trade and than force the short seller to return the shares. Perhaps you have a source for this information?
Yes, you have to have a margin account to do all that crazy stuff. It's quite stupid for someone to short this stock prior to this Q's result. Without knowing the real cash flow, it would be difficult to do any forcast to determine if saba is overvalued or not. I would not want short against all these day traders..
<<<"If you place a sell order of 12.00 on all your shares, no body can borrow these shares for short purpose.">>>
This information seems to get passed around a lot and I'm not sure why. I understand the concept but have never seen any literature verifying it. It's always been my understanding you either hold the certificates or have a cash account.