CTTY.PK

[David Randolph]

The stock showed up on my filters this morning, but I had not the time to dig a bit and consider the stock to be on the 3 Stocks on Fire portfolio. But then, after the market open, tommyt brought the stock up on the Stock Picking Board and that lead me to do some digging.

CTTY is a very small cap stock, it has just 778,184 shares outstanding, considering 3 sources: www.marketwatch.com, www.quote.com and the SEC file for the 1st quarter 2005. With just 778,184 shares outstanding the market cap, at about $16 a share, is around $12M.

The all history chart of the company is this:



The stock shot up more than 300% on the 21th of June because of these news:

Catuity shares soar on software deal

Then there were some developments, the CEO sold his shares and quit the job, the stock had a big pullback and now the short term chart looks like this:



I don't have time to dig more, but I guess the deal with CreditChecks means a lot for a company with just $12M of market cap. The CEO was pretty cautious too, just announcing the deal when it was completed, and there was no relevant activity in the shares before the news.

I'm in @$15.56.

Everyday I will analyze CTTY after the market close until I sell the stock. I always tell I'm going to sell before I actually take action. You just have to follow the answers to this post.

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[TRUNK]

I'm in.. 125 shares at $15.54

This is the first Non OTCBB stock I've bought  ..  Love the small float and the Volitility..

[lojze]

And don't forget stops.

[stocks2watch2]

I bought yesterday @ 11.00, I will sell half today and hold the rest. This is a small float and a fast mover.Remember to use stops. Also check out CTIB another small float that moved up 250 % on 6-21 when CTTY  did. It is also in play today with above average volume.

[snowcat]

This has been on the Stocklemon shit-list for a while.  But profit is profit.

Dear Reader,

Two weeks ago, Stocklemon warned on Catuity Inc (CTTY) while the stock was trading at $18 a share.  After taking a quick run up on a meaningless announcement, the Chairman of the Catuity quickly sold all of his stock and resigned his position.  Just yesterday, Catuity filed an 8k notice of deslisting or transfer stating that they are out of compliance with Nasdaq Marketplace Rule 4350. 

Yet, the stock is up close to 75% in just 2 days.

Stocklemon believes that Catuity is still just a lemonade stand and the recent run up can be more attributed to day traders and speculators rather than long term or institutional investors. 

The Catuity story has done nothing but gotten worse since the first Stocklemon warning.  The story has become so stupid that it make TheStreet.com list of the 5 Dumbest Things of the Year.

http://www.thestreet.com/_yahoo/funds/editorsdesk/10230504.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

Last time the stock was trading at this value, CEO Racine told Marketwatch, ""...there's just no justification for the level we're at now." 
http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B79BD6453%2D0A2F%2D43C9%2D90CE%2DD81AF8BD4633%7D

Stocklemon believes it is only time before the company either raises money or gets delisted from Nasdaq and therefore will send the shares back to their pre June value of under $5 per share. 

Cautious Investing To All.


Stocklemon.com

[tommyt]

This is not an investment. It's called speculation. I'm out over $17.00 Might be back tomorrow.

[mulder]

toot, its back at 15.77

[tommyt]

Looks good for a pop tomorrw at least. I got a partial fill of [email protected]. Don't forget your stops.

[stocky]

Not my kind of stock, will stay away from this

[TRUNK]

Now I see why its not alwyas a good idea to hold overnight.. It closed so promising yesterday too.. Terror attacks are quite a shame on many levels

[tommyt]

It has discounted all stocks, though CTTY has come back to $15 in pre-market. I filled the rest of my order @ 14.75.
Don't forget your stop.

[TRUNK]

Help me out, what area would you suggest someone place a stop on this one? Thanks

[tommyt]

I think you were in around 15.70 or so right? Right now that sounds good, maybe move up later. Just be cautious, don't spend extended time in the bathroom or milling about when you own this. It requires 100% attention.

[TRUNK]

lol.. ok.. just hit $17.20 so you had a super sensational purchase this morning at $14.75 amongst the panic.. Applauded.. I'll probably just take my profits now and watch and try to learn.. Thanks,

[David Randolph]

Actually I don't see much risk with CTTY. This stock could go to $100 as easily as a penny stock goes from $0.15 to $1. The difference is that this one has a lot more volume 

Calmly holding CTTY.