Small Cap Network Blog

I thought this stock pick may have been dead in the water, judging from the last couple of months.  Tenet Healthcare (THC) had been stuck around the $5.70 area since May. However, today’s move to $6.57 not only breaks the stock out of that rut, but may well have kick-started the final move of this trade.

Our target is still $7.67…  the high point from 2007 we saw touched two or three different times in the first half of that year. In the meantime, we’ve seen a new resistance line come into play.  Using the December of 2007 peak, and then the May of 2008 peak, we can extend that line right up to the upper $7.00 area by the time it’s revisited again.

We’re not there yet, but it sure beats the alternative.

For those of you who got in waaayyyy back in November (at $4.06), you’re up about 61% now. Not bad, though we think more is on the way.

If you were thinking about jumping on board, at this point, I wouldn’t. We’ve got a new pick for you right around the corner, and I’m sure you’re going to want to keep some money ear-marked for that one.

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