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Re: C.C. post# 74028

Thursday, 07/12/2012 11:56:24 PM

Thursday, July 12, 2012 11:56:24 PM

Post# of 232509
CC, there's no ascending anything in this chart. The current trading range is almost perfectly in the middle of the highs and lows of 5 weeks ago (.0028-.0049). Neither ascending, nor descending. The pps is neutral at this point, you could almost say.

Since KMAG is my sole play right now, forgive me if I'm analytical to the point some may think anal, but I guarantee whoever might think that, will still read and likely agree with me.

Chart bollies are pinching tight, which always means a breakout is coming. As a bullish player, I tend to think of breakout as meaning to the upside. Sometimes though, when bollies pinch, they result in a breakout to the downside. Anyone with experience watching bollies knows this.

While the sole reason for us all being invested here is a breakout to the upside, the snake in the woodpile that could cause a break to the downside is the 54M restricted shares looming closely. I presented my best case scenario and I truly hope it's correct. It would be an excellent thing if those 54M shares were already (pre-maturely) 'disbursed' (by way of being short-sold). Unfortunately, my druthers tells me they're not.

Too many times, I've banked on the best case scenario only to regret thinking so bullishly. An inherent fault I'll probably never get over. frown

Nonetheless, I try to remain as objective as one possibly can, which in KMAG's case, and all things consider, is bullish long-term, but bearish, short-term.

Reasons being (aside from the potentials of 54M newly unrestricted shares looming after the 19th), if the market wasn't terribly impressed with the last awesome revenue statement, it most likely won't be with another that is just 10%-25% higher. The market responds to multiples. Not fractions.

Trust me when I say I'm perplexed at how the market has treated KMAG. Baffled, even. Regardless though, it has to be assumed that it will continue until KMAG issues a worded PR that captures the heart of flippers. Something like Nike.

While it's practically sickening that KMAG should still be trading in the .003's, it's fairly clear that the only thing that's gonna break us outta the >.005 range, is the drop of a big name, 'cause the prospect of growing revenues sure hasn't done it yet. Either that or, a few more Q's of continued growth, and/or a few prominent newsletters finally recommending KMAG.

Bottom line is, scale back short/mid-term expectations. The general market has proven it's fickleness. No reason to think the market in general, will change abrubtly. Not without jaw dropping news.











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