Replies to post #2365377 on BB's Stock Haven

[Rainer]

Smart move, BB. Glad to see you joined SAPX. Chart screaming bounce!

[JDs Stocks]

BUCS – Stock Overview

Company Information

Website

News

Pinksheets

Share Structure

Market Value $6,800,000 a/o Aug 12, 2011
Shares Outstanding 100,000,000 a/o Jul 28, 2011
Float 30,213,151 a/o Jul 28, 2011
Authorized Shares 250,000,000 a/o Jul 28, 2011


Fundamental Analysis

The following outstanding fundamental break down was provided by HossPepper in BUCS post # 14292

"From the latest financials...

Total Income 290,042.45
Gross Profit 170,995.87
Net Ordinary Income 63,894.92

Let us calculate a net profit margin on total income:

$64K/$290K = roughly 0.22 or 22%

Now, let us say we work up to $5M in annual income and only a 15% net profit margin...I expect we will be up to roughly $5M in sales by year's end...

$5M X 0.15 = $750K net income

P/E of 25 gives us $0.1875/share (conservative)

P/E of 100 gives us $0.75/share (bullish)

The company target in 2-3 years is $50M in sales, or 10X those numbers for $1.875/share conservatively up to $7.50/share in a bull market...this assumes a 15% net profit margin, or 7% LESS THAN the current net profit margin...

The company thinks they can hit these numbers, and I have no reason to doubt them based on what I have seen so far...I don't think they really have a need to dilute and management is very shareholder-friendly...I strongly encourage you all to own a few of these over the next year(s) as we hit some of these targets...keep in mind we have no real debt, so everything goes to the bottom line for the most part..."

Technical Analysis

Starting Thursday, August 4 BUCS’s SP experienced a recent downturn. The stock had positive MOMO, and the SP was trading in a Bullish Price Channel at the time. So what happened? I have no knowledge of anything negative occurring with the company; therefore, I suspect a combination of other factors contributing to the SP downturn:

1. The overall negative market reaction to major worldwide economic concerns; hence, traders wanting to liquidate stock including panic selling by some.
2. The SP approached the HOY the day before, and failed to breach .09. It generally takes several attempts to reach a new HOY, and break through the top of a price channel. This was just one of those attempts.
3. MMs took advantage of the negative market sentiment, and dropped the SP to cover any potential shorts they had. They also maximized their commission by taking the SP the path of least resistance.

Note that the SP was initially dropped drastically on relatively low volume the first four days of the downtrend (1a). Then there were over 600K shares traded/accumulated between .06 and .065 (1b). Finally on August 12 the SP rebounded to .08 at one point and ended at .068 on considerably less volume, approximately 50K less than the 3 month average in fact (1c).


I deduce that this has been a manufactured drop off, and that the SP should continue its ascent in accordance with its daily Bullish Price Channel pattern (2).


Most overlays and indicators appear to be negative now due to the dip; however, I’d like to point out a few positive ones to focus on.

1. The 50DMA has now become the SP support line in place of the 200DMA, yielding double support via MAs (3).
2. The 14 day RSI has broken back up through 50 (3).

3. Acc/Dis has remained constant (4).
4. OBV has remained constant (4).
5. The +DI and –DI were about to cross; however, they are now diverging. The ADX needs to rise above 25 to confirm the continued uptrend. It’s currently at 23.11 (4).

6. The 5 day RSI indicates that the stock was overbought earlier in August, thus, the recent correction. Now the 5 day RSI indicates that the stock has been oversold. Take a look at how the SP has reacted to previous oversold indications (5).
7. The 15 day RSI demonstrates the stock’s overall strength over the past six months with shallower dips and higher peaks (5).


Lastly, the weekly chart presents us with a 3 year Rising Wedge formation along with a Bullish Price Channel for the current year (6). The all time high for the past 3 years is .09. If the SP breaks up through .09, who knows how high this can run (6).


Also note that the most current candlestick on the weekly chart is a Long Legged Doji (7), which is indicative of indecision. The trading of BUCS fell right in line with that of the overall market this past week. Initially it dropped off, and corrected toward the end. I’ll take this Doji to indicate the market for BUCS has come to terms with the world’s economic issues for now, and will decide that this stock is worth much more than its current SP.


My conclusion: BUCS = Buck$

J.D.

[stockkid101]

nice one, $1 break will send it....i dont understand though how more than the float traded friday with little movement, any thoughts?