Monday, February 4, 2008

ARA - Up a whopping 19.7%

I bought ARA at a price near its IPO. As most of my stocks are deep below buying price, I didn't get a chance to average down on this stock. It was up a whopping 19.7% from yesterday's closing price of $0.61. Congrats to those who have caught this stock at its rock bottom price.

Let me just make a quick technical analysis of ARA. The MACD line has crossed the signal line from below which indicates a very bullish sign. The bullishness is confirmed with a high volume achieved today. On hindsight, there is actually a positive divergence on the MACD histogram prior to the signal line crossing which I have overlooked. I expect ARA to reach IPO price sooner or later as fundamentally in my opinion, it is undervalued.

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