I entered in a position at 12.89 on friday. It hit 25 shortly after, didn't sell, traded EFUT too many times and would have made more simply holding. I plan on holding PNTR, they just posted a profit and higher yoy revenues. Only 400k in the float. I'm expecting a huge GAP UP on Monday Morning!
Am I the only 3stocks member involved in this low float stock. I truly believe it will resemble EFUT's move. Any comments from the TA experts?
1. Introduction
mbaugh is absolutely right, PNTR is a small cap stock on fire ! I don't like to use the term "low float" because I don't think the float matters at all. What makes it move so wildly is the small capitalization, not the small float.
Stocks like these usually present a big profit opportunity coupled with high risk. I want to know if there's still opportunity in PNTR.
2. Profile
Pointer Telocation Limited provides road-side assistance, towing, and stolen vehicle retrieval services to insurance companies and automobile owners in Israel, Argentina, and Mexico. (complete profile here (http://finance.yahoo.com/q/pr?s=PNTR))
3. Technical Analysis
3.1. All History Chart
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=28975;image)
It's hard to believe, but PNTR has been around for a very long time. Had its bubble in 2000 too. The last two day's rise is invisible on this long term chart.
3.2. Medium Term Chart
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=28976;image)
The extremely low average volume is scary. The last two days were the highest volume days in the company's history. Technically the stock can go up to $40 or more in just a day or two. But it can also fall 30% to $10 in just one day or two. As said, high risk/high reward situation.
3.3. Short Term Chart
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=28977;image)
In just one day, this stock opened at $9.23, run to $25 and closed at $15.16, up 89% for the day :o (in a 3 1/2 hour session). All this with just 1.6 million shares changing hands, so I can imagine the bid/ask spread. Despite the fall from $25 to $15 in the last hour of trading, the daily candlestick is still bullish.
Let's check the fundamentals to see what is happening here.
4. Fundamental Analysis
4.1. Number of Shares Outstanding
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=28982;image)
The share count has been rising since 2002, and on September 30 the company had 3,207,143 shares issued and outstanding. The current market cap is $48.62 M.
4.2. Liquidity
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=28979;image)
The company has negative working capital of ($15 M). The balance sheet is weak and getting worse.
4.3. Revenues
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=28980;image)
From the numbers I got, I expect 06 full year revenues to come in at about $41 M, growing 14% from 2005 levels. The revenue multiple is 1.18. The Security & Protection services industry average revenue multiple is 1.12, so PNTR is trading in line here.
4.4. Profits
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=28981;image)
The company made $0.39 EPS in the 9 months through September 06, so I estimate $0.52 EPS for the full year. You can't even see it in the graph, after those huge losses until 2000.
The earnings multiple is $15.16/$0.52 = 29 and the industry's average is exactly 29.
5. General Overview
On a stock like this, anything can happen, but there are some clues telling me the current run up won't last much longer. The share count is rising, so probably management will use this opportunity to unload some shares to investors. This expectation is reinforced by the fact that the balance sheet shows negative working capital of ($15 M).
Revenue and earnings multiples are average, showing the company is fully valued at current prices.
Usually speculators like to push these low cap/low volume stocks to the moon when they're trading at a discount to the market. There's no short term fundamental motivation to push it much higher from current levels.
Anyway, anything can happen, good luck :)
Quote from: David Randolph on November 26, 2006, 03:28:10 AM
It's hard to believe, but PNTR has been around for a very long time. And its bubble in 2000 too. The last two day's rise is invisible on this long term chart.
David, I think it is better to use the Log Scale for the all history chart ;)
WOW!!!!! ;D UP $7 in Premarket!!!!!!!!!!!!!
Yes, news out mbaugh: InPlay: Pointer Telocation files for dual listing on Tel-Aviv Stock Exchange (http://finance.yahoo.com/mp#pntr)
This is going to be day traders dream today >:D
You have almost a double from Friday's session, I would take it (trading at $22 now), according to my analysis above, but do your own DD and good luck !
Hey, congrats, spectacular trade !
Monday, November 27, 2006
PNTR should go higher!!!
PNTR closed @19.30
I like the fact that it traded around the 19 area pretty much all day, making 19 decent support area. PNTR has 3 million shares outstanding and 500k shares in the float. Because of the low float, i believe PNTR will see $50. The company recently had a profitable quarter, so i don't expect traders to give up on the stock so soon.
PNTR actually has a lower float than EFUT, which i think has 1.5 million shares.
Short term to intermediate term play.
I am already 2 for 2 on the low floaters - SWAT & EFUT. SWAT doubled in one week. EFUT yielded a 300% return in less than two weeks. Are we gonna do it again (with PNTR)? Stay tuned...
Good luck. Play small.
PNTR gapping this morning.
Hey guys. Anyone still following this? I just ran across PNTR while researching CIMT. Another Israeli stock again. I checked into it because of the symbol resemblance to PTNR, a stock I wrote about earlier tonight. David called this one right. Stock did fall back again to $10 and there was more dilution. Still the stock and chart looks interesting. Going to take a closer look.
http://stockcharts.com/h-sc/ui?s=PNTR&p=W&b=5&g=0&id=p37924008565