To be fair, part of the reason China Armco Metals, Inc. (AMEX:CNAM), Dataram Corporation (NASDAQ:DRAM), and Premier Exhibitions, Inc. (NASDAQ:PRXI) may be so well-positioned for a bounce today could stem from the fact that the market's pendulum is ready to return from a pretty severe bearish swing. If you look closely at DRAM, PRXI and CNAM though, you may see these stocks were apt to rally now anyway.... making them double-barreled opportunities.
Premier Exhibitions, Inc. is a dead-cat bounce play, plain and simple. The stock gave us a roller-coaster drop in late March and early April (meaning the drop started slowly and mildly and then just plunged). However, the blowout, high-volume day on Friday the 5th appears to also be the bottom. PRXI has been in a bullish mode ever since, and though it was a 'just barely' scenario, the fact that shares made any gain at all yesterday (on slightly higher volume no less) speaks volumes. We can expect more upside follow-through today.
PRXI is manages touring museums, meaning rather than setting up shop in one building and inviting visitors to its locale, it transports the museum pieces to different locales. Its big claim to fame is the Titanic exhibition, which is getting a ton of renewed interest now that the blockbuster film is being re-released. Premier Exhibitions shares got a little ahead of themselves on that news in March, and paid the price for it. But, with the dust settling, it's still pretty clear the traveling museum is sitting in the catbird's seat.
China Armco Metals, Inc. made it over a major technical hump yesterday... the 200-day moving average line (green). While that alone would be encouraging, CNAM has solidified its bullish case by doing a couple of other things along with that key crossover. The biggest of those supporting bullish clues is the fact that the volume behind yesterday's move was huge. And, it wasn't the first time we've seen major accumulation from this chart. Thursday was a major accumulation day too... the first real interest we've seen after a few weeks of lethargic movement. Now we know that lethargy was just a build-up phase.
It's no secret was CNAM is or does - it provides raw metals to the Chinese market. It posted its Q4 and full-year results at the end of last month, which were good in the sense that revenue was up, though disappointing in the sense that the loss grew. Given the time delay though, it's not likely the recent pop from China Armco Metals, Inc. is being fueled by a 'glass half full' attitude regarding the stock. Given the isolated volume surges, this budding bullishness looks to be institutional-level interest.
Finally, after a miserable 2011, Dataram Corporation shares are starting to look like better and bullish days are ahead. That's not to say they're fully over the hump just yet, but we are seeing some solid clues from DRAM that suggest the risk/reward scenario has turned favorable.
The big clue is the fact that DRAM has fought its way back above the 100-day moving average line at $0.88. However - and this is equally important - it did so after pushing off the support of its 50-day moving average line. On top of that, we saw a huge volume buy-in last week that jump-started this whole effort. Point being, there's more favoring Dataram Corporation right now than we can chalk up to mere chance. This is a paradigm shift.... and one with a lot of room to recover.