Small cap power: CIMT

[Garoh]

Hi David

I feel like this stock will shoot to the stars soon 

I think we should see nice move today , Hope so 

david as I expected to the Stars 

[eggman11]

We really need a close above $3.05 (previously closing high) to take us to a new higher trading range.

[Terliso]

Nice chart my fellow traders. Perfect T3ML - daily & weekly scale.

[kpunarc]

I sure hope so; I was expecting a quicker 2nd wave.  I'll just have to be patient, because that 2nd wave will come.  I missed the 2nd MSI wave because of my lack of patience.

is that the second wave you're looking for?   

The main concern I have with CIMT right now is how thinly traded it is.... if today is any indication this is the most thinly traded stock I think I have ever been in.

Small market stocks will do that to you.   But all of a sudden one day volume will kick in and the stock will be up 50% before you can jump in.

[tokyopua]

I want to warn everybody that even though CIMT has, in my view, a lot of potential, it will take tons of patience to wait for the positive news to come out and push the stock higher (even though it can surely move without any news, just on existing information and prospects).

Well, glad we were patient for these many long days, it has been tough, but after countless hours of waiting, we finally got that good news! 

Haha, of course Im just joking, just cool that the news came so fast 

Clearly, more to come...

[lancefur]

I realize that long term this is a great investment and happy to be one of those people that exhibited patience. 

Looking at the techincal side though, I see that RSI is above 70 and when this had the 100% run up a little while ago, was way over 70, somewhere around 90. Now, with that said, my gut tells me a sell off tomorrow that sparks to get the RSI in acceptable territory. Any thoughts on this or just ignore this?

[tokyopua]

I realize that long term this is a great investment and happy to be one of those people that exhibited patience. 

Looking at the techincal side though, I see that RSI is above 70 and when this had the 100% run up a little while ago, was way over 70, somewhere around 90. Now, with that said, my gut tells me a sell off tomorrow that sparks to get the RSI in acceptable territory. Any thoughts on this or just ignore this?

Just my thoughts here, could still sell off, but consider that:

-The last run up was over 100%, today is just 26%.  Any selloff would likely be of a lesser degree, and considering how big the last jump was, there was not too much of a selloff in relative terms
-RSI can stay elevated for long periods of time
-The candlestick pattern for today is Rising Three Methods, IME a highly reliable indicator of future upside
-Today's advance came on a day where the overall market was down, so any bounce or upside to the overall market in this week might add support to the stock

Personally I feel that today just makes it easier for me to be patient with this stock for the longer term growth David has predicted. 

If it were a bit more liquid it might make more sense to try to sell and buy back on a pullback, but you could also lose some on the spread due to it being thinly traded, especially if it just consolodates around the current level, or worse yet if you have to buy it back higher lol.

Can be wrong though...

[lancefur]

I realize that long term this is a great investment and happy to be one of those people that exhibited patience. 

Looking at the techincal side though, I see that RSI is above 70 and when this had the 100% run up a little while ago, was way over 70, somewhere around 90. Now, with that said, my gut tells me a sell off tomorrow that sparks to get the RSI in acceptable territory. Any thoughts on this or just ignore this?

Just my thoughts here, could still sell off, but consider that:

-The last run up was over 100%, today is just 26%.  Any selloff would likely be of a lesser degree, and considering how big the last jump was, there was not too much of a selloff in relative terms
-RSI can stay elevated for long periods of time
-The candlestick pattern for today is Rising Three Methods, IME a highly reliable indicator of future upside
-Today's advance came on a day where the overall market was down, so any bounce or upside to the overall market in this week might add support to the stock

Personally I feel that today just makes it easier for me to be patient with this stock for the longer term growth David has predicted. 

If it were a bit more liquid it might make more sense to try to sell and buy back on a pullback, but you could also lose some on the spread due to it being thinly traded, especially if it just consolodates around the current level, or worse yet if you have to buy it back higher lol.

Can be wrong though...

These were my thoughts as well, I just wanted confirmation to my thought process. Thanks!

[buddjas1]

is that the second wave you're looking for?   

Today was surely nice but not as strong as I would have liked.  CIMT will probably flat line at around $3 until more news surfaces. 

[realcoolhead]

More on a general observation: when a stock suddenly goes up a lot, I used to try to "outsmart" David and sell in the hope of buying it back at a little bit cheaper. Many times it worked but in a few occassions I had to buy it back at a higher price. The thing is, it is the situation that you have to buy it higher usually costs you a lot more than what you can scrape from those small gains when you could buy back cheaper!

Think about it statistically, if you do it often, you might succeed maybe 80% of the time, but the 20% of the time you end up chasing the stock can cost you. Another scenario is that whenever David made a purchase, 80% of time you could wait and buy the stock at a lower price  (you could look at the history and do the statisitics), yet every now and then a stock just does not pull back after David's buy  , like GIGM, NVTL right now and a few other happened before, MSI's first purchase for example. And those who don't pull back usually "cost" you a lot.

So in the long run, it will probably all balance out, and sitting tight and letting good stocks run without trying to squeeze out little gain here and there might even be better. Plus you don't have to spend a lot of time watching the market anymore. 

Looking at the techincal side though, I see that RSI is above 70 and when this had the 100% run up a little while ago, was way over 70, somewhere around 90. Now, with that said, my gut tells me a sell off tomorrow that sparks to get the RSI in acceptable territory. Any thoughts on this or just ignore this?

[Dory99]

Terliso,

I love your 3 magic line strategy: what indicator(s) tell you that it's time to sell a stock?

Thanks,

  Dory99

[tokyopua]

Just dawned on me that today is a G-Spot breakout with the close above 3.04.  Niiiice!

This one is going higher from here!

[David Randolph]

The news on CIMT was:

• Cimatron Opens Two New Offices in China to Meet Growing Demand
PR Newswire (Tue 10:23am)

In 2005 the company already had 34% of its product revenue and 13.2% of its services revenue coming from the Far East:



With 80% revenue growth in China in 2006 probably the South East Asia is becoming the most important revenue stream of CIMT. Hence the opening of two new offices in that region of the globe.

The news in itself isn't all that relevant, but it is another indication that the Q4 2006 results wasn't a one off and the company is now a growing and profitable business. Again, in the Chairman's words:

«Mr. Rimon Ben-Shaoul, Chairman of the Board of Directors of Cimatron Said, "after several years of re-organization, cost cutting and extensive product development, we believe the Company is now on the right track for sustained growth and profitability, and that Cimatron's current competitive advantages enable us to reinforce our worldwide market positioning, both in emerging and traditional markets."»

Now we just have to wait and see how much revenue growth and how much profitability. And, of course, keep holding the stock without the slightest regard for short term volatility

[David Randolph]

Most people can't stand the idea of letting the profits run, because they're always afraid the market will take those profits they need so badly, so they cut profits short, as it happened with people selling CIMT yesterday.

My take is it will take time, perhaps weeks, but higher prices will come as fundamentals are improving.

[David Randolph]

There wasn't any new technical or fundamental information for CIMT today. I'll keep holding the stock as I wait for the news of improving fundamentals.