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Amwest Imaging, Inc. (AMWI) shares have gone ballistic in the last few months as traders try to wrap their heads around this high-tech company and how it operates.
Go ahead and peek at the AMWI chart to get a better grip on what we're talking about:
Now that MACD is printing again for the all-new AMWI, the histogram bars are nice and strong. Plenty of momentum on this chart!
STO looks profoundly oversold down at a mere 11 points on a 100-point scale.
Solid 34% more buying interest than sellers on AMWI since the split. Nice demand imbalance on the bulls' side here.
Classic consolidation pattern as the candlesticks shrink to nothing and the volume bars fade to near zero -- traditional signs of a breakout ahead.
Trend lines are still forming up, but AMWI has recaptured the 10-day trend...so there's only the 20-day line above us.
How AMWI's technology hit a 3-bag home run
What exactly AMWI does is pretty simple. They've taken the next generation of Web technology out of the lab and are applying it to some of the most lucrative consumer markets -- real billion-dollar opportunities.
The fun started in November, when AMWI closed its acquisition of a company that uses the high-tech "cloud" to make "instant" websites and provide all the marketing and e-commerce support Web retailers need. (Read more)
That very day, AMWI shares tripled in price while volume soared 70-fold overnight.
AMWI is using that technology to power myRestaurantWeb.com, which lets local restaurants maintain an active Web and social media presence for a mere $49.95 a month.
In the "old" dot-com industry, just the text messaging piece alone could cost $500 to $1,000 a month, so you can see how disruptive AMWI's technology really is...and how much money they expect to make as a low-cost, low-fuss competitor! (Read more)
The AMWI revolution continues with a $6 BILLION opportunity!
The disruption doesn't stop there. AMWI has a consumer product on the market in the form of "Zipclick," a handy little program that encrypts all your text messages, Skype and even VOIP calls. (Read more)
This is exactly the kind of product that Wall Street firms, healthcare providers and other heavily regulated companies pay big money to buy or build!
AMWI management says that even if they get 15% of all the people who use Skype to buy the Zipclick, that's almost a $6 BILLION revenue stream right there! (Read more)
That's as big a number for AMWI as it is for the rest of us. Granted, there are 535 million AMWI shares out there post-split, but while they're trading at barely 67cents apiece, the math still looks pretty tempting. (Read more)
AMWI has the fire...and traders are eagerly warming their hands
The big red candlestick back in November is easy enough to understand. It's a stock split that the data services haven't fully adjusted for yet.
But after that split, AMWI swung back up from $0.03 to over $0.60 on truly herculean turnover -- tens of millions of dollars changing hands on some days -- and even touched a high of $1.39 for a few heady minutes on December 8.
Action like that demonstrates without a doubt that if AMWI has the right set-up, it can deliver the big, big moves that we all like to see!
And now that AMWI has gone back to fill in a few of the gaps and is back at more historically "normal" levels, traders are getting hungry again.
Bottom Line: AMWI was too hot to handle for awhile, but it's now cooled off to where it was before all the NEWS of the last few months.
Is AMWI now "just right" or is there upside left to bake into these shares? Get it on your watchlist and see for yourself!
TheLightningPicks
