The third liners shaping up for a party!

Two of the out-performers today are third liners- EMICO & Dataprp. Both are marginal companies, each making small losses for 1H2011 (go here & here). Punters are unperturbed by such inconvenient details & charged in once the whistle was blown.

If you looked at their monthly charts from 2000 until to date, you will see that both stocks had had a few failed rallies in the past. Many of the rallies were good for less than a month. The trend for both stocks is downward, which means that if the current rally fizzled out, the stock will go downward. EMICO looks a tad more exciting as it has broken above the "downward channel" but you have to bear in mind that such previously thinly traded stocks can soar if there is a player determined enough to "light the fire". Will EMICO & Dataprp do a Harvest? Who knows. The way some third liners are soaring, one is quickly reminded of the Second Board bull run of 1996. That was a great rally which ended in tears.


Chart 1: Emico's monthly chart as at Nov 1, 2011 (Source: Tradesignum)



Chart 2: Dataprp's monthly chart as at Nov 1, 2011 (Source: Tradesignum)