Hi Lou,
How about doing a study on MM and NLN. They were both high flyers once upon a time and have fallen on hard times.It appears management of both companies have righted the ship and are making a comeback.
Thanks,
Jim
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Hey Jim,
Thanks for the assignment. I will review the charts for Mood Media Corp. today and NeuLion Inc. on Wednesday. MM is in the business of filling in the background of our lives with sounds and sights. The company offers a wide range of services that include voice messaging, digital signage, scent marketing, mobile marketing, sound and audio visual, techno media, and business interior design. I had to look at the choices available in the scent catalogue, but, unfortunately, there was nothing that I could find that was designed to simulate the smell of money!
Operating in 40 countries with 500,000 subscriber locations MM reaches 150-million consumers each day. Management has, as you cited, been expanding the bottom line through efficiency programs and expects to find another $5-million in savings in 2015. Q1 results are scheduled for release on May 14, which will provide the next flex point for the stock.
An inspection of the charts will inform my study of the prospects for MM.
The three-year chart depicts a stock that has broken above the downtrend line that had dominated trading going back to 2012. The moving average convergence divergence (MACD) and the relative strength index (RSI) generated buy signals in December of 2014 as the shares moved off the 52-week low of $0.37. A golden cross formed in March of 2015, alerting investors that buyers were taking control of the market. At this point, there doesn't appear to be any resistance until $1.00.
The six-month chart illustrates the pattern of base building that the stock has established as it started moving higher in December. The first support level came in at $0.50, followed by smaller ledges at $0.60 and then again at $0.70. From a purely technical look at this stock it looks like there is more in tank. MM has made a nice turn from a long decline and the uptrend line is exhibiting a series of higher highs and higher lows. With Q1 set for release in a few days, there appears to be a trade setting up to resistance at $1.00.
Next time, I will examine the charts for NeuLion Inc. to conclude the task set before me.
Make it a profitable day and happy capitalism!
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