daytrading paradise right now

  1. 1,263 Posts.
    Swiftel seems to have established itself now in the 10-11.5 cent range. as other posters have alluded to, and I have seen over a few years, not many stocks tend to stagnate too long at these levels. As each increment is 0.5 cents, or nearly 5 percent, daytraders and institutions tend to start getting on board.

    Why i think SWT is such a sure thing at the moment is that it has hit this purple trading range on the back of strong growth both in turnover and profit forecast, so if we look medium to longer term then SWT will almost definately be trading much higher lets say in a year, with many good trading opportunities on the way.

    One downside to trading SWT is the fact that according to some posters here, the usual suspects of WA brokers might be starting to trade as well. So for short term trades, one almost has to second guess what tricks they are up to. Its easy to imagine them having a bit of a play, picking up 5 % in a couple of trades before sliding down to the Brass Monkey hotel for a boozy lunch and story swapping about the number of valves in their new BMW. its a shame as SWT iteslf seems to be a solid company with good management and a firm commitment to growth and expansion

    If you read the company announcements, all forecasts for growth in their ADSL customers are being met, they are meeting or exceeding their expansion targets. Their profit projection for the end of this financial year is $1.5 million. Their total market capitalization is around $15 million at current share price. So anyone can see that if they also come anywhere near their profit forecasts, they will be undervalued by at least 50%. Even if they don't meet their profit forecasts, the fastest growing ADSL re-seller in Australia has to be a take-over target for any of the larger telcos.

    So all in all SWT has to represent great trading for any spec investor at these levels. Should be able to pick 5 % percent on intra-day, and downside risk is very very low.
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