Decision Diagnostics Corp (DECN)

[Leirum]

In hinsight everybody can see buy- or sell-signals, but then it Comes out of the various Interpretations, that the market showed divergences like relative strenght versus Price or whatever indicator is en vogue. Then we have the psyco indicator called contrary opinion, when everybody screams buy = sell and when everybody screams sell = buy.
Unfortunately even this model proved the crowd wrong. So what is then left at the technical front? Throw them out of the window? Of course not as most of the newly developed models are only 20 % fundamentals and the rest is technical, whereas the smart Money can bet versus the technicals through the Options front or other Kind of instruments created by the financial houses. But of, course, DECN is not a stock that would fit into those criterias. So if the criterias do not fit to have a technical following, where is then the buy or sell Signal to be placed?

Very simple: The old fashioned risk-reward Ratio. DECN certainly fits the criterias for a buy, as the present cap. of roughly $ 4.5 - 5 Mio cannot be called exessive, regardless of the size of the amount one calculates into for being paid in a Settlement.

If one sees hidden gems in a Company that one day could be recognized one better invests and goes for it and if one sees a Company with a dying Business model one better leaves the Party.

Why I am still in DECN - I still see a nice Settlement amount being paid and I still see, DECN moving ahead with a new Business model which should have the Chance to create some decent Returns and being immun against attacks from the biggies. Over time, one learns the lessons and DECN is not the first one to Profit out of a mess, as hard as it is and was to muddle through to stay alive.

If only taking the DECN Chart to Point with the fingers at the Company is as wrong as it was with the 3 following examples.

And what I produce is random but all 3 examples Show, that risk-reward ratios from time to time are thrown over board and then you get those Kind of exesses only to be corrected again.

1.Stock of a Company of last week
2.The Russell Index which certainly presents the small and medium sized market and 3. One of the largest Banks.

All what we can see - very ugly sellouts - and then never looking back. Why: Most of the time the market is wrong - being this on the high side or being this on the low side. If it would be different, then we all would be rich and as we know, this is not the case.