COOL gapped up this morning after beating earnings guidance by a lot. The company makes facebook apps/games so it's in a hot industry with stocks like MCZ, STVI, and GLUU which have done well recently due to the hype involved with facebook. This stock should run tomorrow despite being up today. Momentum buying says buy high and sell higher, verse the old belief you have to buy low and sell high. A lot fo stocks stay over bought for multiple days or even a week and considering it consolidated today I think this should be no different. I expect 2.60 as it had buying into the close and after hours and it manage to hold it gains all day. From my experience this pattern usually has follow through for multiple days or weeks when a penny stock is actually profitable and in this case this companies net profit jumped from $2 mil to 8 mil which is impressive. I got some at the close and I will add tomorrow pre market or at the open with a market because I think this spikes. At worst i will stop out at 2.10 2.15 with a tiny loss so risk/reward is good.
Posted by The Bigfoot on :
Q1 numbers, upgraded guidance, Feb Sales in, Zacks upgrades COOL
quote: For the first quarter ended January 31, 2011, Majesco's net revenues were $48.5 million versus $29.2 million in the same period a year ago. During this same period, the Company reported operating income of $8.0 million, compared to operating income of $2.5 million in the first quarter of 2010
quote: The Company's basic and diluted net income per share for the quarter ended January 31, 2011 was $0.18, compared to basic and diluted net income per share of $0.10 in the same period last year.
quote: The Company expects fiscal 2011 full year net revenue in a range of $100 to $110 million, up from the prior range of $85 to $90 million, and non-GAAP EPS of $0.20 to $0.25, up from $0.06 to $0.10