(Click on the image to enlarge)
Small cap started with a bang on the first trading day of 2010. It has also managed to break out from so called triple tops - a damn stubborn resistance. It has been struggling to maintain its posture since Jan 15. The rotation of these stocks for the few days has been fast and furious. I would be real careful on small cap stocks until I see a clearer sign that there are genuine buyers out there. Just watch the pull back, if it turn bloody and close the upside gap - I think it will turn into a sharp pull back. Don't get me wrong, many of them are cheap with great value but I just got the funny feelings now.
Public Bank just announced their full year 2009 financial results. EPS practically flat compared to 2008. Even this giant managed to grow by 15%, 2010 EPS will be about $0.84. There are not many reasons for it to go higher than $ 13 this year fundamentally. However I don't think this is going to be a negative catalyst.
No comments:
Post a Comment