Jun. 20 at 12:06 AM
$VMD This is an interesting stock. I’ve been in and out of these shares several times over the last few months. It’s been a nice swing trade. The numbers below actually look great but the company is so small with a market cap of just
$260M. Average volume for these shares is only 150K shares per day. That’s not a lot of activity and it could potentially affect the price spread. Fortunately there’s a well defined Darvas Box with limits at
$6 and
$10. When you look at the current earnings of $.30 and next year’s earnings of $.49, and you put a reasonable 20 multiple on those earnings, you also come up with
$6 and
$10. That’s comforting. Above that you’ll probably encounter some level of resistance near
$12.
