Could you please comment on BioExx Specialty Proteins Ltd.
Thanks and Regards,
The last time I posted an analysis of BioExx Specialty Proteins Ltd. ( BXI TSX) was on November 03, 2010 for Ryan. At the time it was suggested that it would be prudent to take some money off the table. The late Ted Carter who was a good friend and the author of ” Successful Stock Market Speculation” always advised that you should get your adjusted cost basis to zero as quickly as possible.
If for example you bought one hundred shares at the cost of ten dollars and the shares ran up to twenty dollars you should sell fifty shares. You would then have one thousand in cash and one thousand in stock. Your profits would continue to be at risk while your original capital would be in your pocket.
Lets examine the charts to see what has transpired since November of 2010.
The three year chart confirms the advice offered in November of 2010 to take some money out of the market. The stock has given up ground ever since and closed at $1.37 on June 7, 2011. That loss represents a 50% decline from the closing price of $2.74 on November 3, 201o.
Make note that the MACD provided a number of buy and sell signals over the course of the retreat.
The six month chart offers a closer look at the downtrend in place since late January of 2011 when the shares traded at $2.60. The MACD and RSI both generated sell signals at the time. Currently neither indicator is suggesting a shift in momentum towards increased buying.
The average daily volume for BXI over the last three months is 786,255 shares. Over the last thirty days volume has been above average on only nine days. In the last three sessions volume has been significantly above average with the stock losing support at $1.70.
What investors also have to keep in mind is that the company is scheduled to report Q1 2011 results on June 9, 2011 after the close of trading. The sense that I am getting is that the aggressive selling ahead of the results indicates that perhaps some in the know, know its time to hit the silk. The release of quarterly results is, as we have discussed many times, a flex point that you need to have on your calendar. The forecast of the two analyst providing their views is for a loss of $0.03 a share. The company has missed the street estimate consistently over the last six quarters.
Given all the factors in play I would wait until the release of Q1 before considering a buy.