This stock has been in a ten year base, the longest base I've seen in a long time, going nowhere, until last year.

Because it drifted below $1.00, and traded below $1.00 for over a month, NASDAQ threatened to delist Pacer, forcing trading on the bulletin board. The alternative was to reverse split the stock. The Pacer Board of Directors decided to reverse split the stock, 1 for 5.

With that news, the price dropped below support; all the weak holders dumped their stock with the "insiders" picking up more bargains at the lowest price seen in years.

Although reverse splitting the stock is perceived to be very bearish by the public and the Wall Street community, it can actually be the opposite, bullish, with a signal that this may be the very bottom of a particular issue. You can see an example of a reverse split of Studebaker Corporation on page 41 of Ted's book.

Now, almost a year later, Pacer has built up a wonderfully looking ascending triangle below the previous support area, now resistance.

Remember, when a stock has put in such a long base of many years, it is the foundation for a huge rise, not for a mere rally.




Put Pacer Technology on your buy or watch list.


Joe

Nice one Joe. My particular choice of entry signal gives an entry now or even a couple of days ago. 100% in 4-6 months is a good possibility. -------alan

Joe,
I totally agree that PTCH is ready for a highrise and a few days ago I asked for input on TEC / Tpy and some others. I was looking at them as having good consolidation and quite a few years of it, however I had some input that they were in a downtrend which I didn't agree with. They may consolidate more but I think that eventually they will also become a highrise. I have read Ted's book 15 times mainly about the stocks, however I used to trade commodities but have since gone to stocks. Maybe I am interpeting the move of these stocks wrong but going by what Mr. Warren said about the 4 different phases of a stock, it seems logical to me. I would appreciate any input from you to get a cross reference of different people. thanks,
Don Seaton

Don,

Both of these charts look OK, if you are only looking at very, very long range charts, say 10-20 years.

My monthly charts show highs of 500, in 1983, in the case of TEC, and 800 for TPY in 1980.

Looking at these very long time frame charts creates a distortion which makes the recent time frame look like a very smooth, sound base, but that is not the case

Looking at a 3-4 year chart, the perspective is entirely different. TEC is basing around $0.50 and volume is drying up. A good sign, but it needs at least another year to be a really sound base, IMO.

TPY, on the other hand, had a channel formation lasting 6-9 months last year, followed by a short rally. It is now drifting down from there. I don't see much in the 3-4 year chart that excites me about TPY; I do not see a sound base.

IMO, I'd pass on TPY and follow TEC for at least another year.

I hope that helps.

Joe

Weekly (10yr) and daily (2yr) charts support your analysis, IMO.

Bill

i agree Joe, Bill.........alan

Say Joe,nice job of chart reading.Something only years of experience brings.

For the kudos Bill, Alan, Tony, and Don.

(Blush).

Joe

(Look at the chart in the post above.)

Joe

I feel like a complete idiot. I have no idea what anyone sees in PTCH. It's below it's base of the past 5 years. I don't like it. And the volumes too thin. There's gotta be 101 stocks that are better than this one.

I'm just saying this for any of my friends who drop by-- not to challange all of you on PTCH or ask for a clarification. I don't like it and don't recommend it.

I promise to reread TW, though. It's been awhile.