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Re: Southern Gal post# 6346

Saturday, 01/29/2011 3:02:49 PM

Saturday, January 29, 2011 3:02:49 PM

Post# of 96906
It is not difficult to make an assessment of where this stock is headed. It is not necessary to make a single phone call to any executive or investor relations firm. Look at the financial's & the chart, then factor in your own opinion of where the company is in terms of its growth and make a decision.

Financials: recent dilution was minimal and was transacted at a premium to todays pps. Float is still reasonable even with recent dilution. Company is positioned to be profitable with no long term debt.

Chart: stock has only risen (from a downtrend) above .20 (4) times in the last year (4th time was Friday Jan. 28). Two of the previous times stock rose above .20 led to significant gains (.47 & .31) the third time was a short lived oversold bounce on weak volume that quickly receded. If we get through heavy resistance in the .21-.23 range, we could be on our way to retest 52 week high within a few months.

Growth: Sales and contract wins are clearly accelerating in one of the rare sectors of the economy that is growing rapidly.


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