Veltex Corporation (VLXC)

[george8]

Actually, INNO is another great example of the importance of technical behavior. INNO bottomed around $1 in 05/2004, then made a 5 month long push to just above $3. The stock retrenched 50% of the gain, and held $2 line and took out $3 again within a timely fashion. And the rest is history.

On the other hand, VLXC's quick spike to $3.7 from $0.75 (?) looked more like a classic "pump and dump" so far. If the fundamentals are indeed as good as you have painted, it should have held $2 line. There are always people who know better. More often than not, this stealth knowledge would work its way into the market in the technical traits..

If VLXC makes another quick spike next week into the $2-$3 area, it should be used as an opportunity to sell into (bail out). A long lasting uptrend needs a solid base that I have not seen happen with VLXC yet.