| trend | adx | psar | pps | macd | macd trend | sto | sto trend | |
|---|---|---|---|---|---|---|---|---|
| FEWP $0.57 |
O FEWP! How do I hate thee? Let me count the ways!
The volume is painfully low, less than 100,000 shares a day. With that low volume and a price of less than a dollar, this stock is open to manipulation, big time.
The short-term indicators (see the glance above) are all negative.
Analysts don't cover it, so there are no estimated earnings.
The company has reported no financials since it was listed over the counter last February.
All that's knowable about FEWP is a price history and a story. Let's do the story first.
The email promo I received this morning says FEWP has powerful Chinese contacts and a breakthrough approach to wind power.
The "stock picker" claims that FEWP shares could reach $27 in four years, for a 2,700% return.
FEWP is a U.S. company, by the way, not Chinese, with a headquarters address in Phoenix, Arizona.
According to the Google Finance description, FEWP "focuses on building a portfolio of wind power development projects located across China." It goes on to say that the company used to be called Celestial Delights USA Corp. and marketed a line of flavored oils, vinegars, mustards and other condiments for gift baskets.
Now, the price history.
FEWP opened at $1.43 when it went public last February and in that month rose to a high of $1.46, a level it has never attained since. The stock has decline (lower high, lower low) every month since the open. It has never had an up-month.
On July 2 the shares hit a lifetime low of 52¢ and touched that level again today before rising to 62¢ and collapsing back again to below 60.
Well, look. I have no doubt that wind power will be important to China's future. The country needs energy, and the winds that blow the yellow dust of the Gobi Desert all the way to Kyushu in Japan can provide a lot of power.
I'm skeptical that a Phoenix, Arizona start-up is the key to this development, and that a its officers have clout in Beijing, even if the CEO has a Chinese name.
The lack of any financial reports is damning in the extreme, the technicals argue against opening a bull position and the price action is, well, ridiculous for any bull play except for the riskiest of hope and speculation.
Reversal Levels
- $0.75, +31.6%
- $0.57 <== You are here.
- $0.52, -8.8%
The company's web site provides their version of the story. I must admit, the idea of wind farms in China is intriguing, much like the old colonial-age dream of wealth from selling oil for the lamps of China.
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we reemerge from the wreckage.
Disclaimer
Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.Abbreviations:
- psar - Parabolic Stop and Reverse
- adx - Average Directional Index
- pps - Person's Proprietary Signal
- ma20 - 20-day moving average
- macd - Moving Average Convergence-Divergence
- sto - Fast Stochastic
- trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
- adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
- psar, pps, macd: green for bull mode, red for bear
- sto: green for overbought, red for oversold, yellow for the neutral zone.
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