EBIX Performs as Predicted

In less than one month, EBIX has moved from 15.53 (see this blog 11/2/11) to over 21.00, that's a 35% return in in my book.

I am tempted to hold on to the stock provided it closes any day this week above 20.95, thus getting near a seven month high. Any significant rise in volume combined with an increase in price could trigger further buying to cover massive short positions.

We'll wait and see.
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More Comments on EBIX

The article in this morning's Seeking Alpha seems to go along with my earlier post.


2 Tech Stocks To Buy On Any Pullback

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EBIX Could Make a Turnaround

Having lost about 50% of it's value since March 24 '11, EBIX Inc.'s (EBIX) stock has found a base and could be poised for a rebound.

Ebix, Inc. provides on-demand software and e-commerce solutions to the insurance industry.

Here are some of the positive aspects:

1. 3 month support base at about 15.
2. Crossed and held above the 50 dma for 7 trading days; note that
yesterday it broke the pattern and, if not reversed, could retest
the lows.
3. Price support at about 15, limiting the downside exposure.
4. Adequate average daily volume of about 527 thousand shares.
5. Earnings have increased annually for at least 8 years, with a slight
decrease estimated for '12.
6. Forward P/E ratio is estimated around the mid 9's.
7. The stock is heavily shorted, so the bearish pressure could keep it
down for a while, or propel it on a "short squeeze".

Closing yesterday at 15.53, EBIX is a stock to be considered.
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PWER Keeps on Drawing Attention

This morning we received another write-up about PWER, this time from seekingalpha.com:

http://seekingalpha.com/article/269969-short-squeeze-ideas-9-highly-shorted-cash-rich-stocks-with-institutional-buying?source=yahoo

Professional stock researchers and investors are taking positions in this stock.
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More Positive Comments on PWER

Today's article on "thestreet.com":

http://www.thestreet.com/story/11118748/5/5-stocks-setting-up-to-break-out.html

Two weeks after the comment on this blog (and a 7.19% gain), another article confirms our views.

We'll see in the coming weeks if we still stand firm on our convictions.
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More Comments About PWER

This morning I came across this article from stockpickr.com, it talks about the posibility of a short squeeze.
We could be on to something with PWER.

http://stockpickr.com/roberto-p/portfolio/earnings-short-squeeze-plays-05-02-2011/

We'll see after the earnings are released.
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It is Not Lights Out for PWER

PWER has been trading below its 50 and 200 day moving averages since 2/4/11, thus missing the ride up that the market has enjoyed. During this period, the technology sector has been lagging and oil prices have skyrocketed.
Again, eyes are turning to alternative energy. A cycle we have witnessed in the past.

Power-One, Inc. (PWER) designs, manufactures, and markets power conversion and power management solutions for the renewable energy, communications infrastructure, and other high technology markets.

PWER's chart pattern begins to look attractive and if, in the next week or so, it breaks and closes above the 50 dma at 8.27 (8.21 at the close of 4/28/11), it could take us to the 10.50 level within 3 months.

Now, this prospect is somewhat risky since there are sizeable short positions in the stock. As a contrarian investor, I am expecting a two stage surge in the stock price and a "short squeeze".

With a volume of 4.7 million shares in daily trading , a chart pattern at a crossroads and the connection to the alternative energy sector, I would consider PWER a candidate to place some bets with risk capital.
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WATG Makes the Cut

WATG has been in my short list from late April. Since then, in early May, the stock value took a 40% tumble (from about 12 to 7). Finally, in the past five months, it found a base at around 8. Meanwhile, it maintained a range above the 200 dma and on October 11, it rose above the 50 dma in a definite manner. In my view, these are positive technical signals.

Wonder Auto Technology, Inc.(WATG), in the Chinese auto parts sector, through its subsidiaries, engages in the design, development, manufacture, and marketing of electrical parts, suspension products, and engine components.

Heavy short positions may be forced to cover if the uptrend continues, thus catapulting the stock price.

Positives are:

•Good chart pattern. Recent break up above the 50 dma.
•Consistent uptrend and rebound from the lows of late August '10.
•Good average daily volume of about 520,000 shares.
•Forward P/E ratio is at about 11.


Closing yesterday at 10.40, WATG appears to be an attractive prospect.
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Short Squeeze on HW?

Are we going to see a short squeeze on Headwaters Inc. (HW) any time soon? If so, be prepared to experience a nice rebound of this stock.
At this time the price is rising decidedly above its 50 day moving average on news of a feasibility study for a coal liquefaction plant in Assam, India.
If the stock holds today and builds upward momentum, those investors holding short positions on HW could be running to cover in the near future.
Trading at 15.80 today, we are at 22.3% below my original comment of 5/23/07 when it was selling at 20.41 and about even with a second mention on 8/22/07.
I like the chart formation at this time and expect positive results in the weeks ahead.