Short-Term Pullback?I like LFD. I like their prospects longer term. In looking at the technicals though, I think it's due for a bit of a pullback, which would be consistent with the way it's been trading for the last couple of months.
Right now the RSI and Stochastics are showing overbought. The MACD is still showing postive, but it typically lags the other two indicators from a signal perspective. In mid-October, it tested new highs of .26-.27 before pulling back. In mid-November, it tested .28-.29 before pulling back. This week, they've been around .32-.33 cents (tested .34 intraday). As I said, some of the technicals are showing overbought and signaling a turn so I think it's run out of gas at this level right now and there may be a bit of a pull back before ultimately testing newer highs.
They're not planning to spud a well until Q2 2011 according to their presentation so there won't be any news in the short term (e.g. flow results) to push the stock price higher....just speculation. Not that there's anything wrong with that. But, just some things to consider.
In the spirit of transparency, I got in a .28 and got out at .325. I'm hoping the pullback will materialize in order to buy back in, but figured I'd lock in some gains rather then watch them melt away if my analysis did come to pass.
Some on the board may agree, others may disagree, but I think the good thing here is to put thoughtful comments regarding stocks that others may find value in rather then simply pumping or bashing. There've been some good posts to date that I've enjoyed reading so to those that do that, keep it up.
Good luck to all. To stay consistent with everyone else on Stockhouse, the above comments are IMHO :)
DK