Spectra7 Microsystems Inc. trending lower

Aug 5th, 2015 – 1 Comment

SEV is a volatile trader that pops and drops providing trading opportunities for those who watch for the signals and can seize the opportunity.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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SEV LOGO

Lou,

You may like to take a look at SEV on the Venture Exchange. Could play a big part in virtual reality and in other electronics.
Cheap way to play this sector, albeit it a little risky.

Luciano

 

Hey Luciano,

Thanks for the assignment. This will be the second time that I explore the charts for Spectra7 Microsystems Inc. (SEV TSX). The last time was on December 24, 2014 when the shares were trading for $0.55. Gary wanted a second opinion on the company and the virtual reality market. The company produces integrated circuits that can solve a few of the major challenges in the market for VR headsets, size, weight, and transmission speed. There is also potential for the technology in the HD TV market.

The research indicated that the virtual reality market continues to build and that there are some serious players in the game. Here is a recent article on the VR market that you might find useful.

http://www.digitaltrends.com/computing/these-fierce-oculus-rift-competitors-are-ready-to-thrown-down-in-vr/

 

What was also uncovered in the study of SEV was that it was and still is a small player in the supply chain serving the sector and would have to fight for its place in the sun. The stock had been pulling back from a 52-week high and was holding support at $0.55. The momentum indicators were in the early stages of turning higher but still needed to produce a clear buy signal.

Since late 2014 the last quarterly report issued in May of 2015  saw revenue come in at just over $700,000 and a smaller loss year on year. In June of 2015 the shares graduated to a listing on the TSX from the TSXV.

Another inspection of the charts will help identify the trend in place for SEV.

 

 

 

SEV

The three-year chart indicates that the stock spiked to $0.75 by the end of December 2014 but then retreated to $0.45 by March of 2015. There was another spike off of $0.45 to a high of $0.83 by April. Since then the stock has been posting a series of lower highs and lower lows.

 

 

 

 

 

 

 

SEV2

The six-month chart highlights the death cross that formed in late June and the resistance along the 50-day moving average that has been in place since the beginning of June. Make note of the sell signals generated by the MACD and the RSI in April as SEV hit $0.83.

The conclusion of this analysis is once again that the stock has to be viewed as a speculative investment. SEV is a volatile trader that pops and drops providing trading opportunities for those who watch for the signals and can seize the opportunity. It is not a buy and hold stock.

Next time I will inspect the charts of Canadian Western Bank (CWB TSX) for Steve.

 

Make it a profitable day and happy capitalism!

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