What happened to UBET today?

W

wabrew

Help me out here. I started following UBET a few months ago after Spydertrader had added it to his list. I am a closet value guy and have a tough time trading high p/e stocks, but have come to realize that this is where many good trading stocks come from. I was particularly attracted to UBET because it meets my grandfather’s 3 point stock test.

1) Is the product inexpensive (yes – it costs $ 2.00 and up)
2) Is it consumable ( yes - It lasts less than two minutes)
3) Is it addictive ( Why do you think they named the company Youbet?)

I really do believe that high volume is often a sign of possible moves to come ( Also part of the Jack Hershey strategy). Here is what the daily chart looked like at 12:45 CST.

Here is what the 5 day chart looked like at 10:30 CST today.
Another page coming
 
You can tell I am new here.

I would like to know how many think there was conspiracy here. In other words, it did not look like there was any reason for the stock to move (on relatively light volume) to the 6.00 level and then trade large volume to the 6.10 level (thereby attracting ‘volume traders’). It went on to trade a total of 415,777 shares today and closed at $ 6.03.

Here was the time and sales from the last few minutes of Mondays trade – Note - Monday volume only totaled 105,533. Nothing here to tip off this morning’s activity!
 

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I think 2 0or 3 MM’s who had been accumulating on modest downticks the last few days decided to trade back and forth for the first 30-45 minutes of trading, (all on modest upticks), and got no resistance from us – then they traded enough volume at 10:30m CST to attract our attention.

I do not think this stock is on the ‘Hershey lists’ anymore; but am wondering if anybody has any ideas that can refute my conspiracy argument?

Also, didn’t today’s action put this stock on many traders watch lists for possible opening moves tomorrow morning?


Here is the 5 day chart
 

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To be quite honest, I have to say that on technicals alone, the chart doesn't look terribly appealing to me right now, but it could be soon.

I've posted about my thinking before on the forums, but I've noticed that I've started to think more and more in terms of probabilities when I look at charts (and fundamentals). My personal suggestion would be to monitor this stock around the $6.50 range, because it'll be probably be a point of resistance (previous high for the stock). If it can break through that point, things could move quite nicely.

As for fundamentals, after a quick scan of the fundamentals I would probably say that I wouldn't have a problem with putting on a position trade. Specifically, revenue is growing, profitability is growing, cashflow statement is looking good (operating cashflow in particular is nice). P/E isn't insane, etc.
 
P.S. If you're looking for a good play based particularly on fundamentals, I might recommend researching CV Technologies a bit, they trade on the Canadian Venture Exchange, ticker is CVQ. You can find detailed financials on Canadian companies at www.sedar.com (very, very nice, not to mention free service...).
 
Thanks for the input Chagi, but I am really confused about todays volume action - especially how it played out. I will try to attach the five day chart as a .GIF file so you can see my question better
 
wabrew,

w all due respect, you're making a mountain outta molehill. It was a normal move both in volume and price (normal as in not outside 2nd std deviation of ATR). I'm a TA guy so I don't give a flying leap what UBET does. The move looks totally unsuspicious to me but you may want to call in Fox and Mulder just in case.
:)
 
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