THIS IS THE KIND OF STOCK YOU WANT TO BE LONG IN A BULL MARKET
I see traders and investors pointing out stocks on a daily basis that they see as buys for one reason or another. Unfortunately, when you look at a snapshot of the company, in the form of a chart, it looks like a distant cousin of the Addams Family. Scary, pale, without much character and a blank look on its face. That is what I see in many of the names that investors tend to become obsessed with. The obsession is mostly due to one valuation metric or another, a key product or a recommendation. These considerations all seem to trump whether the company looks aesthetically pleasing in terms of price action.
It has been my experience that the best investment opportunities come when beauty is offered along with brains. In other words, fundamentals and technicals come together to create a symphony of profit potential. Valuation is damned if the price doesn't line up beautifully to confirm your fundamental homework. The new product that seems so promising is garbage if the price doesn't want to cooperate. An analyst upgrade or a recommendation by your favorite market pundit is a fart in the wind if the stock can't look itself in the mirror due to the horror of its price action.
Tonight I discovered a prime example of the type of company that deserves serious consideration within a bull market. The risk is clear. The trend is even more clear. And the strength is crystal. It is a company that deserves to be on the watchlist of short-term traders as the price action and patterns are extremely clean. It is also a company that deserves to be on the watchlist of longer-term investors as these types of trends have some very real potential over the long run. In other words, they don't dissipate overnight.
The company is ALLT. It is an Israeli telecom company that does business in Africa, Asia and the Middle East. All the parts of the world that are growing at a breakneck pace, in other words. A nice tight float of 22 million shares. A roughly $600 million market cap. Short interest of less than 2% of the float so you know that the volume we are seeing is not simply demand meeting supply in the form of short sellers invading.
I haven't studied the company fundamentally beyond the above mentioned. And I don't need to.
Here is the chart:
click chart to enlarge
ALLT
