Stock question

[synapse13]

PTSC has tripled in the last 2 weeks. Should i buy it now or is it DONE ?

[redbeard]

I personally never touch penny stocks, so for that reason alone I'd say stay away. However, as a fun exercise I ran this through a quick and dirty tool a day trader friend of mine shared with me. It is very simple; you take the daily prices for the stock (in this case, here) and bring it into a spreadsheet. Then you create two new columns to calculate 30 day and 90 day moving averages for the price. When the 30 day moving average becomes above the 90 day moving average, that is when the model says to buy. When it is below, the model says that is the signal to sell.

This model doesn't make any sense to me as to why it would work, and I should explain right up front that I'm not very well schooled in technical analysis. However, since my friend challenged me to try it out with past data, it is very interesting to see how often the buy and sell signals it gives are accurate. In this case, the model said you should have sold the stock (had you owned it) around August 18th 2005 when it hit $0.11 a share, and then bought the stock (or bought it back) around Jan 31st when it was at $0.16 a share. Since recent closes have it at in the 70 cents a share range, one would have done well to listen to this last buy signal in the model!

Edit: I thought I'd share the formulas I use in OO calc to do this, in case anyone wanted to play with it. Once you have downloaded the price history data (like in the link above), use the following equations for cells H2-K2, and then copy them down. This assumes collumn G has the closing price, and row 2 is the first with data. The titles go in row one for their respective columns:

Cell H2 (Title: 30 day mov):

=AVERAGE(G2:G31)

Cell I2 (Title: 90 day mov):

=AVERAGE(G2:G91)

Cell J2 (Title: HighLow):

=IF((H2-I2)>0;"Higher";"Lower")

Cell K2: (Title: Transition)

=IF(J2=J3;"No";"Yes")

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wow, it really zoomed today. Has now octupled in one month !!!!

[ImNeat]

BUY!

I have absolutely no idea who they are, how well they're doing, or why you should/shouldn't buy. So I highly recommend you buy.