hard to believe it is just getting started
Since our first recommendation to buy at $25, then to add to your positions at $22, the stock has gone through some rocky trails but it has finally reached our rally point of $30. But we won't recommend selling. Also, we wouldn't be against it. It is a personal decision and a strategy decision. Short term versus long term and sticking to your exit points. Our has always been $35/38 for a good sell.
Vasco is not for the faint of heart. It tends to sell hard after big rallies leaving investors trying to figure out what the heck just happened. But the good thing about this late rally is that it hasn't been anything super exciting. It has taken a while to get here and to finally conquer the peak. It has been a steady climb with a few falls. Very organic.
Ok, to the numbers...
$VDSI sure looks cheap when looking at its PE and comparing it to those of similar companies in cyber security and technology. Specially for a company with no debt weight. We won't call for doubling the price but we believe it has another 25% potential growth for this year. This is a pure PE play considering demand will only increase from now.
Vasco is not for the faint of heart. It tends to sell hard after big rallies leaving investors trying to figure out what the heck just happened. But the good thing about this late rally is that it hasn't been anything super exciting. It has taken a while to get here and to finally conquer the peak. It has been a steady climb with a few falls. Very organic.
Ok, to the numbers...
$VDSI sure looks cheap when looking at its PE and comparing it to those of similar companies in cyber security and technology. Specially for a company with no debt weight. We won't call for doubling the price but we believe it has another 25% potential growth for this year. This is a pure PE play considering demand will only increase from now.
Another very fascinating number is its short % of Float. 44%, yes Forty-Freaking-Four Percent as of end of April 2015. Considering the stock has been in a good healthy trend upwards, we believe a good percentage of this traders will cover. But also, considering we are at previous peaks, some of them may consider letting their profits go to zero and let the stocks expire worthless.
Take a look at the Max Pain for June and July Maturities.
Take a look at the Max Pain for June and July Maturities.
Looking at the charts, we see that the stock is just starting to get into rally mode.
ON the Daily you see MACD gapping up supported by RSI move towards rally mode. We are creating a series of higher highs and higher lows on all metrics MACDS, RSI, Stock price.
ON the Daily you see MACD gapping up supported by RSI move towards rally mode. We are creating a series of higher highs and higher lows on all metrics MACDS, RSI, Stock price.
On the weekly, we want to take a look at both candles and Heiken Ashi Candles. The regular candles will give us the struggle for the rally while the Heiken Ashi chart will lay it out nicely and present the broad picture.
On all charts as we expect we see the same trend. What it is stunning is to see the first couple +SAR stars supporting the rally.
We grab all of the above and wrap it around with some great news coming out supporting the real need for Corporate Security and Cyber Security , and we have a beautiful picture for Vasco.
We just hope the Market does not show up uninvited and ruin the party.