Tuesday, October 9, 2007

Wood Buy: KTEC

Yesterday I established a small position in KTEC after Fly mentioned it. He even offered up this research report from Needham.

The stock broke out to a new 52 week high today, although the volume was weak. In fact, volume has been weak during the wedge created in September and October. Due to the weak volume and wedging action, I've only committed 100 shares to this stock.

The Bollinger Bands (not shown) are tighter than they have been in 6 months. As you know, tight bands mean a greater likelihood of increased volatility. Should volume move in, I think there is the possibility of a large upside move.


Broker A said...

Had an hour convo with the CEO.

Great guy. Mentioned they are working on detection equipment for salmonella. That would be huge.

When I initiate a position, I'll write up a detailed update.

In shot, 50%+ of their revenues comes from overseas. They just opened a Beijing office.

Huge demand for food safety, especially in exporting nations. And, the company is running at full capacity.

Trying to balance the business and not over invest.

Woodshedder said...

Excellent notes Fly. I look forward to the profile.