Will AXO get a new year kiss. It is unloved at the moment.
This would be a Warren Buffet type of stock to buy except that it is in the minor league in terms of capitalization. The chart pattern seems to indicate a major jump in the short term. Clearly, a large seller has depressed the price to bargin territory if financing comes through in 1st quarter 2010. This stock has all the hallmarks of being unloved as very few want to buy it.
Only investors should have been buying at the moment unless one has bottom fishing trading rules. Funny really as most traders won't get on board as it will probably gap when it goes. Still for those long suffering investors an up move is long overdue and reflects the issues of owning stocks with inexperienced but keen management teams. The smart move AXO management made, after an inordinate amount of time, was to employ external consultants who will get the job done. The only question in my mind is a what price. The risk in the new year is to the upside not the downside however, how many will see it that way. Very few, I reckon hence: "The future is never clear, and you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long-term values." - Warren Buffett
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