A day before it happened we warned that this stock was in for a drop after a little push higher. Precisely what it did. The drop turned out to be a little more violent than initially anticipated, whipping out about 50% of all previous gains. Presently we do not know if this is a wave 4 with new highs to come, or if we are still in the pull back that will become more complex. Either way we would stay out.
This was once one of the gems of the tech. bubble in 2000. Their fuel cell technology is based on burning hydrogen, which we all know results in water. Very clean, efficient and so on if you do not first ask where the hydrogen comes from! The other problem is the weight. These cells do not fit in a standard Fiat 500. Anyway, for some reason (Tesla’s success maybe?), interest in this company has shot up recently. We have absolutely no idea where this is going, or why. But , using EW we suspect it will go to about $9.50 with a lot of little ups and downs at about this level. A similar conclusion can be arrived at if you follow the “gap in the middle” concept. The stock is already going vertically up so a stop-loss is , in any event, advisable.
To put this in historic perspective, this stock has the ability to go much higher as well as much lower. It all depends on what timeframe you chose. Below is the 20 year chart with a high somewhere in the order of $170 or so.
Timminco traded at $3.08, more than enough to make a 30% return. BLD, Ballard we missed buying by 30 cents so that does not count even if it gained 80 cents.. In the mean time BBD.B, Bombardier,for a second time traded above $3, also more than 30%. Again I am not advocating that one always sells after 30% , but as mentioned earlier, it does held to set certain standards and at least for the evaluation of performance I will continue to use the 30%. I still own Bombardier even if it has been up slightly more than 30% from $2.25. Here is TIM.
and Bombardier;
I do not particularly like penny stocks, but then this is not yet a penny stock. I understand that there is a “house†that specializes in these things recommending the stock, with a target at around $3. Well what I did not like about this thing is that I never understood how you put a 10 ton machine in a car (bus maybe), nor do I see how it solves the energy problem as you are simple transferring the “burningâ€to another spot. Anyway what is clear is that if there is a time to buy, there has never been a better one, from $210 t0 $1.20 is quite a move. Nevertheless it may pay to wait for $0.90. The triangle in the upper section measures about 70 cents, so if e ended at $1.50 that suggests 80cents so that would be $0.70. You would not want to miss it after waiting 10 years so you go 10 cents higher. Good luck.