A Buying Strategy for Stratagene
Entering the market mid 2004, Stratagene has had a copious amount of ups and downs contributing to its high beta near 2.6. Supporting a resistance level of near 11.50 and a supporting level near 6.00, the stock provides a timely manner of when to buy and sell. What is most interesting about the price now is the recent downfall from its supporting level on its recent news of a poor second quarter. With widening losses and negative surprises regarding earnings, shares of the stock fell to near 4.90 creating an opportune time to get into this stock.
In terms of fundamentals, while the company has not had a terrific second quarter, it will be expected that next quarter will bring a rebound creating higher margins and profitability. Along with the recent venture with Merck & Co., there should be high potential for increases in all areas as new regions will be explored in regards to production and research. With the continued notion that the economy is headed towards a recession, all the factors lead to the statement of a company ready to jump back to prices of its IPO days in the recent future.
Continuing by examining the technical side, for the past two years buying Stratagene around this time is extremely advantageous. Typically the stock is at a low during the summer mouths providing an excellent buying opportunity. When autumn time comes around, investors heed such trends and buy shares through the winter and early spring of the following year pushing the stock up nearly 50%. Once such a high has been reached, a sell off does occur in anticipation of the next cycle. With a price at an all time low, and the potential to grow 100% by April of 2007, Stratagene provides the data on all cylinders to be a worthy stock to invest in for the next few months.
Entering the market mid 2004, Stratagene has had a copious amount of ups and downs contributing to its high beta near 2.6. Supporting a resistance level of near 11.50 and a supporting level near 6.00, the stock provides a timely manner of when to buy and sell. What is most interesting about the price now is the recent downfall from its supporting level on its recent news of a poor second quarter. With widening losses and negative surprises regarding earnings, shares of the stock fell to near 4.90 creating an opportune time to get into this stock.
In terms of fundamentals, while the company has not had a terrific second quarter, it will be expected that next quarter will bring a rebound creating higher margins and profitability. Along with the recent venture with Merck & Co., there should be high potential for increases in all areas as new regions will be explored in regards to production and research. With the continued notion that the economy is headed towards a recession, all the factors lead to the statement of a company ready to jump back to prices of its IPO days in the recent future.
Continuing by examining the technical side, for the past two years buying Stratagene around this time is extremely advantageous. Typically the stock is at a low during the summer mouths providing an excellent buying opportunity. When autumn time comes around, investors heed such trends and buy shares through the winter and early spring of the following year pushing the stock up nearly 50%. Once such a high has been reached, a sell off does occur in anticipation of the next cycle. With a price at an all time low, and the potential to grow 100% by April of 2007, Stratagene provides the data on all cylinders to be a worthy stock to invest in for the next few months.
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