The Faraj List of Exploding Stocks Part 3.04 (FAR3)


Invisage - Tue, 28 Dec 04 :

There are probably alot of you out there gagging to trade in the markets tommorow...i was going to make a few trades toooooo....but decided not to....End of Dec/early Jan theres always bargains to be found out there....MM mark down stocks on the thinnest of volumes so not a good time to sell either! I will watch with interest, but feel patience is needed. My strategy is to take atleast 20-30% from every punt i make, when i punt in a stock it must be able to yield atleast 50%+ in the next 12 months, well i think it will! so if i dont get the 50%+ atleast il get my 20-30%, once it passes my crucial 20-30% mark, i hold and set my stop loss at the 30% mark, if it hits that again then im out, if not then the profits just keep growing and growing. My new years resolution is not to trade, buy and sell to the minimum level, the biggest cost in this game is that to your broker, last year i overtraded, it cost me 20% of my capital, thats alot of money. This is a business, to make a profit you have to cut costs...

This is a stock which i punted in a little while back, Tech and Cat got a bit controversial with me on this one. Its called AI Claims Solutions (ACS), they commented that the chart is still in a short term downtrend therefore was not worth a punt just yet.

I punted on the basis of this longer term chart :



Indeed if your going to punt, look at the longer term, thats the next 12 months.

I also punted due to EVO's price target of 48p after the "bad" trading update, ACS recently announced another trading update which stated "current trading is encouraging and marginally ahead of market expectations for the first half. Turnover for November was significantly ahead" this followed big directors buys. I wonder what EVO's price target would be following that trading update and director buys...

With EVO's conservative price target of 48p the stock is 84% undervalued at todays prices.

With the Directors buying on the 17th and 22nd of Dec, when the year end is the 26th of Dec, i cant see how you could go wrong with this, its just so close to the year end.

This is in a similar business to ACCIDENT EXCHANGE, which has been VERY Buyoant over the last few months. November was a very good month for them as stated in their interims, T/O increased from 1.136 mil to 7.67 mil, with PBT up 603%. Numis broker note states its expecting a compounds earning growth of 356%, this is MASSIVE imho. I cant see why ACS cant take advantage of some of this growth, after all they too are very confident about their second half too. ACE already has a market cap of 145mil, this i believe will grow, ACS market cap is only 15mil, i think the downside is minimal on ACS.

This stock had a downday in the last trading session, but looking at the chart notice it was on the thinnest of volumes. If anyone does punt this is a longer term investment, imho where the reward is in your favour. So be patient and wait for a good get in price, i would say 25p is a good price to get in, where it shall form its double bottom and shall bounce of it. Take a look at the graph...


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