TLS - moving on up, page-166

Hello 13th, when a stock takes a plunge as TLS did on August 17 on news of dividend cut, sometimes there is an immediate attempt to recover but fails, it forms this "hump" as shown. The hump is in close proximity to the plunge day and forms soon after the plunge and the high of it falls noticeably short of the plunge high.

The plunge high is $3.99 and the hump high is $3.94. I called it $3.95 to round it off.

The stock will always go back at some future point and at a minimum, trade at that "plunge" high and in the case of TLS, it is $3.99. That is where I get my "will touch $3.99-$4.00" target from that I sometimes talk about.

But as a first instance, when the stock has had multiple hammerings and conditions are overly bearish, the stock will at least have a go at that "hump" high. And in this case with TLS it is $3.94.

This level of $3.94, call it $3.95 (for the attraction of a round number) will be achieved. Absolutely guaranteed with a stock like TLS. The question is when. And I just took a punt and reckon by February end (seasonally makes sense too). If not and I am wrong about timing, that level of $3.94 will still be arrived at but it might take a little longer. And so will $3.99 be touched. Now, if it is not $3.94-$3.95 exactly, it will at least be $3.90 (remember the words, "at least have a go at").

And given my theory above, if you have a look at the chart on February 16th 2017, you see another "plunge" day (another profit related plunge day - love this management). What is the high of that plunge day? Yes folks, it is $5.01. That is why and where I get my $5.00 target by year 2020 from that I also talk about time to time. TLS will go and reach and trade at the high of that plunge day as well.

So, rest assured, in time, TLS will trade to $3.99 and $5.01 again. It means that TLS is going to find alternative revenue, be it 5G or other.

Hope I have answered your question.