Four Star Holdings (OTCBB: FSTH) has only witnessed one solid day of trading over the last couple of weeks.But when one of its record volume days occurs and the volume is considered low in comparison... partly because FSTH is similar to a "New Issue"... any level of increased and consistent buying power could push shares to new heights.
The 52-Week High is $2.99...fairly close to where the upper Bollinger band is. So, if you follow that indicator - one of my favorites - than my bet is that you'll be pulling up this chart after you read the rest of this email.
FSTH Fundamentals Look Solid
I'm pretty confident that - based upon the fundamentals - FSTH could be fantastically profitable.
However, I'm also pretty confident that in order to achieve "fantastic profitability", two things are needed:
(1) technical indicators still need to stay solid
(1) technical indicators still need to stay solid
(2) technical indicators suggest an upward continuation
This could be a major incentive for traders to accumulate and hold, which is what occurred on light volulme.
So, without detailing my own long list of "What the Bulls Say" and "What the Bears Say"... I'll just say that I like the idea of riding with the Bulls on this one.
For example, it was very telling about the direction the stock traded today and the direction many traders have told meFSTH is poised to go....
And that's UP. And here my top 3 reasons why:
#1. FSTH traded very heavily on the buy side after many days of non-activity.That tells me that there could have been a small introduction of this symbol to investors who bought and held positions...a more common trait found in stocks that have upbeat fundamentals.
#2. FSTH has demonstrated low resistance.
Typically, a stock that moves up 12.5% on around $26,000 of mostly buying power is hardly one that looks to have much resistance.
#3. Potential profit potential looks good and many could consider this long term. If you speak with an experienced trader then you could hear that stocks which look to be operating beyond the Developmental Stage.... trading in this range and at these levels... with excellent growth prospects... could be mega profit makers.
Top Investment Highlights
Four Star Holdings is currently ranked in the top four builders in the state of Alabama. Their major competition is HPH and D.R. Horton. Four Star has serious advantages over their competition with ability to sell their homes at a superior price with more upgrades in better locations.
- Read this: As the housing market has been hit hard due the economy, Alabama has actually been one of the few areas in the country to continue growing. With the latest economic data showing growth in the home building sector overall,Alabama’s forecast is much greater.
- The Auto manufacturers have been relocating to Alabama to avoid dealing with unions. Honda recently invested 2 Billion dollars into a facility!!
Mercedes Benz, Toyota, and Hyundai are also increasing operations in the area.
- Money Magazine ranks Birmingham "#3 City for Growth" in real estate home sales!
If you do some due diligence, you'll notice that - according to my sources - the previous ticker was DRGA. They switched tickers in April 2010.
But here's the kicker! It is quite often that we run into stocks in this price range that have achieved their prices via reverse splits. However, when this Company obtained its current symbol - FSTH - it wasn't done via a split. Which means it has been trading at values determined by the market in an organic fashion.
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