Mart (MMT.v/MAUXF.pk) positive talk by value1008 on StockHouse Mart board ... I like that he doesn't use terms like "no brainer".
Yes, this stock is still VERY cheap. If Verbonac uses a 4.2 multiple, there's the $2.39 s/p in 2012.
A couple of weeks ago i began using the Wilder ADX trend-strength indicator at Stockcharts to study MMT b/c it was obvious to me that this stock was in breakout mode out of the painful trading range it had been for much of the year. Savvy T.A. guys use this ADX indicator to tell how high a stock can go so as not to fall for a "panic profit-taking" impulse induced by the fear of leaving/losing money on the table (which so often happens when a stock is stuck in a trading range and doesn't break out above and one doesn't do the "rinse and repeat" trader thing).
About two weeks ago i could see that, whereas the RSI and a few other indicators might indicate "overbought" and suggest profit-taking in low to mid
.70s, that ADX clearly shouted "BREAKOUT" and suggested this stock was going to re-set much higher. Hence i didn't do any profit-taking, b/c it was clear this was a new ballgame.
Guess what? That ADX trend-strength indicator, which is clearly a trend of BUYING, not selling, is still VERY ROBUST at around 44 today. 25 is considered a threshold level where a trend definitely comes into place. 30 is considered a strong trend. Mid-44s is a superbly vital, robust buying trend here.
I like the fact that the ADX calmed down a bit from the 50 level with the recent dip of the s/p last week (on falling market days), but is still gently trending up from here at these superstrong levels. Again, this is an extremely healthy looking T.A. chart: for one thing, that beautiful golden cross of the 50dma well above the 200dma. Then there's that strong-upward sloping upper bollinger band, today at 95 --93 yesterday; MMT closed right under it at 92, suggesting it could leap several cents above the bollinger band on a spurt of more buying. In about 3 trading days, especially with such a strong ADX still in place, that b.band could easily be above 1.00.
This is all just T.A. and, as i've said, i'm more of a fundamentals guy, but it's great to have both approaches dovetail so beautifully and to see that, even at today's s/p level, this thing is still VERY undervalued with respect to future earnings and cash flow. And yes, institutions can soon start buying MMT for clients when the s/p floats just a little bit higher.... Especially early in the New Year, IMO, when big money often likes to run smallcap stocks up in a beneficent sector rotation (i.e., if history is prologue to our near future).
It's always the case that a fair number of shareholders are happy to take just 50% - 200% profits and hand off their shares to other shareholders who are happy to sit with their shares til they move up another 50% to 200%. Rare are the people these days, it seems (with so many "traders" and relatively fewer "investors"), who have the patience to endure the volatility and actually hold on for the longer duration to get a 4-8 bagger.
But it seems we have some of these investors here on this board, no? Despite the painful volatility and Agip impasse in our past, it looks like 2012 will be a stellar year for MMT, with so many more catalysts to take this toward the $1.50, $2 or $2.50 mark.
Best wishes to all--both traders and investors....
--timothy
Take time to look around, even on a down day!
