Superconductor Technologies (NASDAQ: SCON)-----An Undervalued Stock Poised for a Breakout
SCON is starting to break out--- Over the course of the next month, this will explode. . . .
Currently SCON is trading for just $2.50. It is expected to hit $20 very soon.
Since February 1, 2011, the price of SCON stock has fallen almost 90%. The price at that time was hovering around the $35 - $40 range. The reason I decided to track SCON back that far is because in January of 2011, Superconductors Tech decided to invest in a startup technology/semiconductor company called Resonant Interactive LLC. This company turned out to be a flop, and SCON has been trying to recoup their money every since. They lost about $10 million in the Resonant Interactive LLC investment, and over the past 3 years, SCON has issued $18 million worth of stock in secondary public offerings ($6 million in 2011-2012 and another $12 million in 2013). Based on the sole fact that SCON has stopped issuing these secondary public offerings in 2014 (meaning the stock will not be getting diluted) is enough to ensure that the stock will increase dramatically over the next month(s), possibly back to the $35-$40 mark that it was at before the Resonant investment and the secondary public offerings.
Over the past year, SCON has increased its earnings each quarter. According to SCON's four most recent 10-Q filings, they had a net gain of $2.06 million in the first quarter of 2013, $2.21 million in the 2nd quarter, $2.44 million in the 3rd quarter, and $3.45 million in the fourth quarter. With earnings increasing at this rate, the stock is a low risk investment that has the potential to quadruple, quintuple, hextuple, or increase even more in the next few weeks.
Superconductor Technologies (NASDAQ: SCON) is very similar to companies such as Plug Power (NASDAQ: PLUG), Echelon (NASDAQ: ELON), and Himax Technologies (NASDAQ: HIMX). Each of these three stocks (PLUG, ELON, and HIMX) have had huge gains this past year. Plug Power (PLUG), the stock most similar to SCON, went from a low of $0.12 to a high of $5 in the past 4 months. That was over a 2,000% gain! Based on the runs of similar stocks, SCON has a very good chance of increasing from $2.50 to $25.00 in less than a 3 month period.
Top analysts at Yahoo Finance rate SCON a 1.0 on the weekly recommendation scale, indicating a STRONG BUY rating (1.0 = strong buy, 5.0 = strong sell). SCON is currently in a strong uptrend, and it is poised for another HUGE JUMP very soon. It is very possible that SCON will see $40, but since I would like to remain very conservative . . . my short-term target price on SCON is still $20.
Read their latest 10-Q (for quarter ending on Sept 28,2013) at this link:
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SCON, PLUG, ELON over the next 72 hours.