Tuesday, March 8, 2011

MUSX --> Greenergy

I have been constantly looking for stocks to trade, either for value investing or for some punting.  Even before when I was just simulating my trades, I have been playing around with MUSX since it has a little bit of predictability on its share prices.  Short term trading is possible since the price of the shares are not that volatile.

What piqued my interest with this stock is on its future plans as a company.  Based on recent disclosures, MUSX is already divesting from its semiconductor businesses, and is actually changing its name from Music Semiconductors to Greenergy Holdings, Inc.  The new name seems to be connected to renewable energy.

I am thinking, at current levels, the stock may be so undervalued given the potential of the company's rebirth. If one buys at 0.067, even small amounts of increase would give tenfolds of profit.  Interesting...

I just don't know what are the possible effects of a high free float level (96%).  This lessens the financial flexibility of the company in terms of equity issues.

Below is the chart for MUSX:
Note that the MACD and RSI show a bearish divergence pattern.  I just don't know if it would hold true in the future.  I wish I could have insider info on this. :D

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