Mountain Fist

Starlims Technologies Long Trade Setup

When I read this my first reaction was to write a nasty comment, too. However, I decided to look into it a little further. According to my chart analysis this was a sell on the open Monday May 19th, and is still within that short term downtrend, as well as a longer term downtrend. A recommendation to buy at this point is irresponsible, at the least. The current short term downtrend appears to be confirming itself this week with a dive below support at the 10 week MA. This stock almost without a doubt will fall below your stop loss and apears poised for a continued fall.

With respect to fundamentals I'm not impressed. The bright spots within it's fundamental analysis are as follows: $32.72M cash, $0 debt, 4.13M operating cash flow, a respectable if not impressive 15.61% ROE, and nearly 10% insider ownership. Not quite enough to interest me in buying, and definitely not without confirmation from basics like price, volume, moving averages, and MACD.

The 0% short ratio is interesting, but maybe as a contrarian indicator, not a buy indicator. Lack of earnings or revenue growth is a red flag for me, and the 3 month avg daily volume makes this a NO WAY. There is no liquidity. This position is a trap, and is still within a long term downtrend. Volume seems to be picking up to the downside this week confirming my analysis.