Our most recent addition, GZFX.OB looks like it may be experiencing further upside today. We will continue to keep a close eye on it. GZFX recently entered into a deal with Circuit City that will allow Circuit City customers to sign up for a Gamez n Flix rental program.
SMKT.OB is a longer-term position in the portfolio. We are awaiting the Texas Prototypes merger and expecting this move to have a positive effect on the stock.
ARSC.OB we sold half the original position for a nice profit and hold a remaining 2500 shares. We see a good chance of further upside for this one.
The SMG Model Portfolio has added 50,000 shares of GZFX.OB at .01. After watching this one for a while a decision to pull the trigger was made. We will be keeping a close watch on this position as there is a possible retracement ahead. It is a distinct possibility that this will be sold quickly and possibly repurchased at a lower price.
The company is invloved in the dvd and video game rental business. Renting video games as well as movies gives this company added appeal. There has been a significant increase in volume lately due to a deal with Circuit City.
One of the main tools used by technical analysts is historical charts. Among these one of the most popular forms of charts that technical analysts use is called the candlestick chart.
As can be seen below, there are two main types of candlesticks.A gaining candlestick is a stick in which the closing price is higher than the opening price.In the image below, this is represented by a green stick.A decreasing candlestick is a stick in which the closing price is lower than the opening price.In the image, this represented by a red candlestick.Different charting packages employ different color schemes.Some even allow you to customize your color selections.
The main elements of a candle stick are the open price, high of the day, closing price and low of the day.The open price is indicated by the bottom of the body for a gaining candlestick(the body is the wide rectangular section) and the top of the body for a decreasing candlestick. The closing price is indicated by the top of the body for a gaining candlestick and the bottom of the body for a decreasing candlestick.The high of the day is indicated by the top of the line that extends from the top of the candlestick body. The low of the day is indicated by the bottom of the line that extends from the bottom of the candlestick body. See illustration below.
Candlestick charting is a very popular charting method amongst technical analyst. However this is just the tip of the iceberg when it comes to tools that can be used for analyzing stock price/volume patterns. Stay tuned to SMG for more instructional articles on technical analysis.
ARSC.OB: The violation of the stop price of .14 cents today is not yet seen as a negative sign and thus a stop loss order has not been executed. Analysis of technical levels indicates support at .13 cents. We will hold here and look at possibly adding to the position as opposed to closing it.
SMKT.OB: A filing for approval of a reverse stock split of 1 share of common stock for every 10 shares of common stock owned has been issued. This is another important step in what basically amounts to Texas Prototypes going public. The stock is a hold here and we are looking at a possibility of adding on any significant dip.
GZFX.OB: We are keeping an eye on this one for a potential entry on a dip. Recent news developments have put this video game/dvd movie rental service in our sights for a possible entry.