Sphere 3D Corporation a speculative buy

Nov 27th, 2013 – Comment

If you are comfortable with the risk profile of this stock you should start picking way at it.


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ANY LOGO

Just wondering if you were aware of  this small stock with potential,Sphere 3D Corporation? Any insights would be welcomed.

Thank you so much,
Kevin

 

Hey Kevin,

 

Thanks for the assignment. Sphere 3D Corporation (ANY TSXV) has wrapped itself in the newest sacred words in the technology space; cloud computing. They are developing and patenting code that will allow corporations and individuals to access any software from any platform. What you need to know about ANY is that it is a development company and as such has not reported  any revenue in the first six months of 2013. In addition you should be aware that the market capitalization for the company is $105.84 million. Having said that it brings to mind what my old pal Peter Jahn used to say, ” What don’t you get the stock is up over 500% in less than a year!”

A review of the charts will add further depth to my evaluation of this investment.

 

 

ANY

The one-year chart indicates that the stock took off in August as it caught a bounce off the 50-day moving average. From there ANY  began a fast and furious ride forming a golden cross in mid August at $1.50 on its way to $3.00 in about a month. What is also evident is a bullish pennant pattern that surfaced in September. A bullish pennant is a continuation pattern which signals that an advance has more to offer.

 

 

 

Bullish Pennant

Here is a textbook example of a bullish pennant.

 

 

 

 

 

 

 

ANY2

The RSI on the six-month chart indicates that the stock has been overbought over the last four weeks and has pulled back just slightly. No doubt some of the investors who have taken the escalator to the penthouse of profits may have decided to book some profits before year end. If you are comfortable with the risk profile of this stock you should start picking way at it. The uptrend is still intact and this could be a case of buy high and sell higher.

 

Make it a profitable day and happy capitalism!

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