Veltex Corporation (VLXC)

[mytejano]

Dagnyish,I have learnt over the years that you can tell as much about the "health" of a companies fundamentals by how it acts technically on the chart over a period of months as you can by digging out all the fundamental info you can find..For example:Even though we know quite well now that the O/S shares since Sept. have increased from 27 million to the present of almost being maxed out to the 50 million level,The stock has continued since Sept to put in a well defined series of subtle "Major higher lows" starting from .01 in Sept to .02 in Oct to .026 in Dec to .031,.033 and .034 in Jan!At the very same time the "stochastics" indicator from Oct to Jan 24 kept giving us readings of "major LOWER LOWS!!This divergence is a dead give away that "strong hands"(I.E. insiders and/or friends of insiders) have been accumulating shares all along and are holding for much higher prices to come.For anyone who doesn't understand just how "bullish" a scenario this is,Just spend some time looking at few hundred charts and you'll discover fairly quickly what I'm saying.The first thing you'll discover is how "rare" this type of divergence is over a time period of a few months!The second thing you'll find is that any stock that matches the criteria descibed above is nearly ALWAYS at much higher prices a few days to a few weeks after the "stochastics" make the "final Lowest Low"...Tejano