It seems that it may take a few more days before the range is broken on the upside. Higher levels are unable to sustain and the lower levels are not giving up. The range is established at around $3.75 to $4.25 (give or take a few cents). If the lower end is broken, the 50 DMA of ~$3.45 will support and if the upper range is broken, then things will become easier. It had earlier appeared that the grinding was about to be over. However, the stock has broken the 200 DMA (~$3.90) again. Now it has to hold for 3 days above this level (plus a weekly close) for it to become a firm base. The current trend, however, indicates some sort of consolidation in the range and an breakout after that. A recent article on seekingalpha has made pretty bullish predictions about the stock. The target for MGT in October is in excess of $17. The calculation has been made on the basis of average performance of stocks like ParkerVision (PRKR) in a run-up to the Markman hearing in their patent infringement lawsuits. The article presumes that the hearing date for MGT will be fixed within this month. That could start a decent rally. Fundamentally, the acquisition of FanTD makes MGT a more balanced business model, and it is no longer solely dependent on the monetization. This is a big positive for the stock. Now, depending upon the success of the acquisition, the company will have a steady stream of revenues, and will have operational “hands-on” experience of the online / mobile gaming / wagering business. This will help it develop as an organization and look for new opportunities in this sector. Most importantly, this will change the way analysts look at the company. Again, based on the quantum of revenue generated by the business, the cash flow and earnings of the company will improve substantially. It seems that there are better times ahead..
Well said, but I wonder how the stock will hold up if the whole SELL IN MAY & GO AWAY actually comes to fruition and we get a sharp market correction. One things for sure, higher risk spec plays seem to get sold first when margin calls start coming in. So assuming we don't have a stiff correction, or one at all, I'd have to agree things could start heating up here in the next few months.