GOAM

[ScottishTrader]

Decision time once again for GOAM.  Has pulled back to key $8 support, forming a falling wedge from the big move in early January, which can be clearly seen in the 30 minute chart.  To break out of this wedge it needs to breach 8.25 on Monday.  As we all know, GOAM can be very explosive, so I'll be watching this one closely.  Below 8.00 further support comes in at 7.80 and then at $7, which was the previous reaction level and should provide strong support.  Upside resistance levels to watch out for at 8.50-53, 9.15, 9.53 and 10.40.

[lancefur]

Probably not a good stock to try and time it? I want to get back into this one since it did so well when 3SOF had it at the tail end of last year.  I might just put in a smaller order and see what happens

[ScottishTrader]

Speaking of bottom fishing for breakouts, GOAM just bust out of another falling wedge and is kicking this afternoon!  Boy can this one move!  Was still bag holding from the last breakout but added to my position in the low 8s.

If we get some continuation tomorrow, I think it should move healthily into the $9 range once again.

[David Randolph]

GOAM is a stock/company that I know well, and I want to buy it for the Main Portfolio before the Q1 earnings release that is due to happen between today and May 16th (the deadline).

The stock has been having very low volume traded so I urge you not to buy it all at once or we'll put the price up on ourselves. Let me say I don't want anybody buying GOAM above $6, you need to get it between $5 and $6, if you're interested.

I'm buying just 4.8% of capital in GOAM instead of the usual 6.66%, because this trade is linked to TZOO's trade and I want to buy the same amount that I currently have on TZOO. Since I'm currently losing 28.12% on TZOO, I need GOAM to rise 39.12% to compensate for the loss in TZOO. I'm pretty sure that's going to happen after the Q1 earnings release, here's why:

1) GOAM is now a $13.5 M market cap company. It is so small that it can rise 100% or more in just one trading day, if the news warrants it, as I believe it will;
2) Market participants were disappointed with Q4 2006 revenue and earnings:

• GoAmerica(R) Announces Fourth Quarter 2006 and Year End Results
PR Newswire (Thu, Mar 29)

What they failed to understand is that GOAM had all the costs and zero revenue from its new Video Relay Service in Q4 2006. Those revenues and profits kicked in just in Q1 2007, and they can be huge, since VRS is paid at more than $6 a minute by the FCC.

Since GOAM has just 2,462,605 shares outstanding, any small profit will be translated to a significant EPS number. And probably that's going to make the stock run wild.

The trading plan is:

Buy GOAM between $5 and $6, 4.8% of capital. Volume is low, no need to rush to buy your shares, it may take 2 or 3 days to buy mine.

[David Randolph]

Ok, I got my full line at an average price of $5.61 (just 4.8% of capital), now I'll just have to wait for Q1 earnings that will be out between today and May 16.

[raspi]

first time in my life I started the rally  . I bought second half of my position at $5.7 and GOAM took off.
Congratulation on this pick David! I really think it's a relatively safe play.

[David Randolph]

first time in my life I started the rally  . I bought second half of my position at $5.7 and GOAM took off.
Congratulation on this pick David! I really think it's a relatively safe play.

Thanks raspi

Yes, I think we played a role in setting GOAM on fire, the stock is relatively illiquid. But volume is acceptable today. I agree with you, GOAM was trading near book value and below 1 year revenue levels. Absolutely not taking into account the VRS service potential profitability. I hope Q1 numbers already reflect those revenues (the service started in December but it was just on an experimental, testing basis, it only really started in January 2007).

If the company is able to make $500 K in profits that will translate into about $0.20 EPS, which will put the stock in the $12 - $14 range. But even if it's only $0.10 EPS, I guess we'll see $8-$9. And if instead of a profit we get a loss, that is what's priced in right now, so as you say, not much risk here.

[kpunarc]

wow. 24%. good job guys! unfortunately...i was fully vested. but congrats to a good pick!

[la-onda]

well, awesome pick again David, I like the 10 min and daily chart

cheers from Asia
Oliver

[Lusitano]

The 3Sof Effect...

[DragonAMG]

Okay... I'm officially upset. ;(

I figured I would buy it when I got in the office today (looked at it early and could have bought at $5.60 with you guys)... but you said, no hurry, buy over the next couple of days, don't buy above 6... well it's at almost $7.  I think I'm going to puke... congrats guys... just wished I could have participated.

[itg00022289]

Hi David,
I just saw your alert mail now....

Do you think that at $7 it's to stretched to get in?

thanks

[BigSully1]

Okay... I'm officially upset. ;(

I figured I would buy it when I got in the office today (looked at it early and could have bought at $5.60 with you guys)... but you said, no hurry, buy over the next couple of days, don't buy above 6... well it's at almost $7.  I think I'm going to puke... congrats guys... just wished I could have participated.

I only got a little more than half of what i wanted this morn. Didn't realize David was going to offset that TZOO trade in just a few hours. Nice.

[raspi]

The 3Sof Effect...

devil group this 3SOF 
I needed this after getting massacred in XING last week 

[DragonAMG]

I just bought and flipped it twice for a quick $1,100 (makes me feel a little better  )

Good for you though David --- you regained nearly your entire loss in TZOO with GOAM in the matter of hours      --- you my friend are amazing

Now, should you wish, you can sell GOAM and buy back TZOO and it's like you bought TZOO at 28.