If it holds 12.1 going into the last 1/2 hour, we can get back to 12.5, but the shorts are very active today, (under cover of NAS), and will try to take it down again to shake out more longs.
Shorts are reloading. If they can get the stock below 12, they'll trigger a wave of selling into which they will cover most of their position.
I think there's also concern about stability of earnings in addition to margins. Hopefully, we'll put some of this to rest later in the week.
Ok.... Here's the upgrade, as it was released on Briefing.com, at 7:59 a.m., Wednesday, Feb 2:
Novatel Wireless: Buy ahead of earnings as visibility improves; tgt $19 - JP Morgan (NVTL) 11.90 : JP Morgan believes that investors should accumulate NVTL ahead of its earnings release and conference call on Feb 10. While the co has already pre-announced 4Q results, firm believes that the associated commentary will provide better visibility into industry growth dynamics, as well as its prospects in mid- to late-2005. Firm believes that the co is likely to win mkt share in this growing mkt in FY05 owing to recent competitive wins at Vodafone (3G card recently launched in Germany and South Africa) and at Verizon (firm believes the V620 card will be available to business customers imminently, and consumers will be presented with the card at retail in February). NVTL is firm's Focus List pick with a July price tgt of $19.
I'm STILL waiting to receive the complete analysis of NVTL from Paul Coster at JP Morgan. I'll keep you guys posted.