MAKO dropped another 40 cents but shot up a whole dollar in an hour. This is looking promising, especially if it can get over $15.20!
Month: July 2012
PBI. Pitney Bowes
Anyone who has spent some time in the mailroom of a company will know that that is where the heart is. It is here that you can find out almost anything about a company as you see the flows.The PB postage machines are right at the center, or maybe not any more. Like the post office it is a dying institution, the only question is how fast? The schematic A-B-C “correction” gives a target of about $8. If it stops there remains to be seen and will depend to a great extent on whether or not the company can live up to its slogan, “Pitney Bowes does more”. It is trying to transition from mail to communications, a broader and more complicated mandate. Presently we appear to be in the 3d wave of 5 of C. The target is also close to $8/$7. The count is somewhat open to debate but the proportions are quite plausible. Here is more detail;
BBD.B, Bombardier update
We have been speculating that this stock might be on its way up (see 7 previous blogs).Today I heard nonsense to the effect that the production of the new plane may be delayed, sort of like with the Boeing “Dreamliner”. It seems that the market, whoever that might be, has a problem believing that these things can actually be made in Quebec. Here is an updated chart;
From the Globe & Mail. The big drop was a zig-zag A-B-C from $27 to $2, or 93%. Certainly qualifies as a bear market. Subsequent to that the stock rebounds in a clear 5 wave move AND then does a clear correction which may not be quite finished. All the time the stock stays above the critical blue line connecting all the lows. A stop at about $2.75 would be appropriate if one decides to go long Bombardier.
MAKO,Mako Surgical Corp.
Two counts possible but the one shown, in both charts, is the preferred. The reason is simple, the B-wave, shown separately in purple, is near perfect which strengthens the view that it is not a 5th wave (the alternative count). The whole structure is a “flat” 3-3-5, or a-b-c, a-b-c, 1-2-3-4-5. The stock has only existed for a few years so presumable this is all of wave 1 up, followed by wave 2. Typically waves 2 retrace very deeply into the gains of wave 1. This one has done over 65%. The company makes robotic non-invasive machines for ortho-whatever , knee surgery. They reported a 66% increase in surgeries done with their equipment but also lowered their expectations with regard to sales, for a second time but not by much. There are 42.5 mln. shares with 32% held in short positions, an unheard of proportion. Goldman Sachs, conveniently downgraded the stock yesterday from “buy” to “neutral”, a change in target from $36 to $17. Should we assume that therefore they did not hold any short positions?? Jim Kramer passionately hates the stock, citing the cockroach theory.
Someday, in the not too distant future, this stock should trade at $27,25 which would constitute almost a 50% increase. Short of a minor 5th of 5 of C, this should be a buy. The rebound could be rather violent if the shorts try to find an exit. As always consult your broker!
P.S. Now that the day is over, maybe the missing 5th of 5 of C was added to take the stock to a $13.80 low. From Bloomberg;
