Are They Starting to Pick Up Steam? CGR, IGC, NTWK

This group of companies, Claude Resources Inc (AMEX: CGR), India Globalization Capital Inc (AMEX: IGC), and NetSol Technologies Inc (NASDAQ: NTWK) all appear to be setting the stage for a rally. One can only hope…

India Globalization Capital, the construction and engineering firm, has been trading in the $0.40 range for the last six weeks. The reason I suggest there may be a rally forming is because of the quick strength shown in the stocks’ recent bounce back.

It dipped from that 40 cent range to below 35 cents and then, within days, shot back up to its current $0.39. There’s support there for rally. The questions are: Will current shareholders start aggregating? And, will management do something to start attracting new buyers? Rallies need ‘believers’ to get things going.

The case is a little clearer for Claude Resources, the Canadian gold mining company. This stock was at $2.20 at the beginning of May and dropped to $1.80 by the middle of the month. A strong spike sent the shares up, recovering the loss, but it drifted down to the $1.77 level by mid June. It has since climbed back to current $1.90 level. Every time the shares dip, buyers pull it back up; and quickly I might add. If those buyers can pick up a dime and get the stock back to $2; they’ll have a rally going and the next 10 cents will be much easier to come by.

NetSol Technologies has a surge going on, and by the looks of it; a rally. The shares were trading in the $1.55 range at the beginning of June, and in some very choppy trading, full of little dips and little spikes, the dips won and the stock wound up at $1.30 by mid June. It is currently trading in the $1.74 range, on a surge, a gain of 33.8% in two weeks. Either aggregators or new institutional buyers are fueling the ascent, or a combination of the two, and it looks like the rebound has legs.

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.