MLGtrader (99.76)

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Market Movers Trade Alert: SVT short term trade

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August 29, 2008 – Comments (5) | RELATED TICKERS: SVT , SPY , USO

SVT is an extremely low volume, micro cap stock. They do governemnt engineering and development for military stuff. They have consistent earnings growth and high insider ownership. Their share price isn't very closely tied to market movements. All the things that I need in a small cap stock.

But I am buying as a short term investment. Recently, the volume has been very, very low in both the general marketplace and SVT in particular. Nothing has fundamentally changed from when they were a $20 stock. Once we see some upward movement in SVT, buyers should jump onto the stock. It has the potential to gap up really fast if there is little selling interest.

It looks to me like the sock may have capitulated: all of the people who are going to sell have sold. The past two days, the stock has been leveling off, looking like a floor. A strong reversal with moderate buying pressure could drive this stock back to $18 in a short time period if the selling interest remains low, which I expect it will.

Bought in with real money at 12.40.

5 Comments – Post Your Own

#1) On August 29, 2008 at 3:11 PM, Collin757 (< 20) wrote:: bought @ 12.4
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#2) On September 03, 2008 at 10:14 AM, MLGtrader (99.76) wrote:: Still holding strong. Reached support and looking for a buying effort in the coming days.
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#3) On September 03, 2008 at 6:30 PM, Collin757 (< 20) wrote:: I sold @ 11.30, shoulda waited for an up day first, no reason to buy unless it shows technical signs of life, not trying to preach, just talking to myself. Was looking for a short term move, with that thing illiquid as dirt wasnt gonna happen. Those scottrade commisions kill u man, IB only charges $1 per trade, but you have to start with minimum 10k...which is what I did, down to 7k now :(, GL on SVT.
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#4) On September 03, 2008 at 6:31 PM, Collin757 (< 20) wrote:: I sold @ 11.30, shoulda waited for an up day first, no reason to buy unless it shows technical signs of life, not trying to preach, just talking to myself. Was looking for a short term move, with that thing illiquid as dirt wasnt gonna happen. Those scottrade commisions kill u man, IB only charges $1 per trade, but you have to start with minimum 10k...which is what I did, down to 7k now :(, GL on SVT.
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#5) On September 03, 2008 at 11:12 PM, MLGtrader (99.76) wrote:: I am still holding. It is too hard to catch the bottom-if you try, you'll find yourself either missing the rally or buying too early on a premature movement up. As long as you are close to it, it can be a profitable trade. Looking at the chart: December of last year, it was trading at about where it is now (support), and then moved up above $20 a share by late March - in the middle of two nasty bear markets. Clearly, the shares move on something more than market sentiment. Eventually, we will move above my purchase price, once we can get some buyers in here and start some upward momentum.
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