Sunday, May 11, 2008

Stellar Company Fundamentals vs. Horrendous Market: SDTH



I had time to look over the press release in more depth. I also asked the company some very targeted questions and received prompt, helpful answers. This is a heck of a company. The stock wants to break out but the overall market, which just bounced off of it's resistance area (Dow 13,100) to the downside, is not very conducive to breakouts right now.


This is an epic battle, on a small cap scale... ;)...

I have rarely been this conflicted between the fundamentals of a company and the fundamentals of the underlying market. Who will win? I don't know but I will be watching SDTH closely for a breakout or a fall back on market fear. In any other market I would just buy this co. and forget about it but right up against the "thanks for letting us enjoy the 'it's all good lie' and profit from it Ben, but let's not push our luck "13,100 level... I just dunno... This really is the most dangerous "buy and hold" market on the long side in decades, maybe since World War II...

If it breaks out I'm in... but in this market almost every stock purchase is a trade... even if it lasts a bit like this last bear market rally.....

This blog is for informational purposes only. It does not give investment advice.

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