Thursday, November 27, 2008

A TINY pivot point (nano)

This TINY chart looks alot like IWM and maybe justly so since its market cap is pretty tiny at about $100M. Both charts have this failing descending triangle breakdown look on a daily timeframe. While I am not convinced in the sustainability of this rally based on the weak volume, this price action is very constructive. If TINY or the small caps (IWM) can push a little higher, volume should move in as technical buy signals get triggered. On the other hand, resistance at this pivot could lead to a short term top on Friday. TINY seems like a good cannidate for a quick double if/when it does break this $3.85-$4 area, just watch out for resistance at $5 and up into the lower 5's. I've got the 5yr monthly chart below, the stock has efectively been in its own little bear market since earlu 2004 after peaking at $25.

Harris and Harris Group (TINY) is a vernture capital fund which invests in nano start ups, read more about it here. This model seems like a great vehicle to me because odds are most nano businesses will fail but one could be a home run and easily pay for all the failures. Think Cypress Semi's spinoff of Sunpower. They have stakes in about 30 nanotech start ups in a variety of industries. Even as this might sound like a very high risk, financing dependent space, this stock has actually been able to hold its 2002 lows. I think it would be safe to say that among the market leading small caps, TINY is a leader. And as I see nanoscience as the future of science and technology, it makes sense that TINY would be a market leader among leaders. I hope everyone is enjoying a relaxing Thanksgiving holiday, cheers!

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