Actually, from the new reports the EPS for PEIX is 0.12, not negative...check your facts Gomez!
Trading on Technicals doesn't mean we should forget about why and how Trends are created...let's review some of them shall we?
1. Company Financials: Probably the most frequent price mover and trend starter...up or down.
2. News: Positive or Negative, news about the company will almost always effect the share price one way or another.
3. Earnings: Strongly tied to financials, these numbers indicate a trend of the financials in itself...they will have a more sudden effect on the stock price while usually starting an up or down trend.
4. Equity: Return on company equity is a good indicator on how well the business utilizes its assets and managing them.
5. New Investments/Aqcuisitions/Splits/Mergers: All aforementioned can be classified in the news segment, but they can be defined as special focal points effecting the companies value in the eye of the shareholders, thus, the share price as well.
6. Market Condition: In the event where none of the aforementioned are taking place, market conditions will usually indicate whether a stock or up and down, thus creating syndicated trend with the overall market.
It is important to note that technicals and trends are the very results that create the historical graphs we study on any given stock. Solely using Technicals are no way a guarantee of foreseeing market direction. History will show us many trends on many stocks being guided by one or more of the above mentioned criteria.
In the case of PEIX, I believe that the company is benefiting from the positivite results based on one or more of the above criteria. Therefore, a new sudden uptrend, followed by a slower continuation of growth can be expected. Investors will see the efforts of the company and the stock will further reflect as such.
In summary, I expect a $1 per share price within 1 month, followed by $2-$3 trading range within 3-6 months. The upward momentum of the stock should continue long term so long as the above criteria is provides positive investor sentiment.
