PCFG established a new 52-week high yesterday. Clearly investors are enthusiastic about the company's prospects. The rally was accompanied by higher than average volume, which adds to the momentum behind yesterday's move.
The question is, can PCFG continue moving higher? The stock has gained 560% during the past month, has a PEG ratio of 0.
Studies have shown that investors who buy stocks after hitting yearly highs during a bull market achieve higher average returns that the broad market indexes. This is a great example of the trader adage that "the trend is your friend." However, these historical results are based on large averages---and some bullish momentum in the market. It is much more difficult to say whether PCFG, as a single stock, will continue to hit new highs. But for the time being, things look promising.
