PMI has yet to fall since I called the stock as a bottom play earlier last week. When I made the call I noted via twitter that the gap down from $.30 would be the first place to look as a price the stock will rebound too. I also noted the next price on a $.30 break would be $.80, another gap in the chart.
PMI sits only 2 cents away from $.30 after a very strong rally. This rally is taking place on increasingly lighter volume. Could this mean the sellers are waiting for higher prices to sell their shares? Could the recent buyers of PMI stock at and near 52 week lows be holding their shares for a longer term turn around in price? These are good questions and ones I think we will have answered within the next week.
Congratulations to those of you who profited and still stand to profit off PMI. Not all stocks bounce after such a precipitous fall, and the ones that do usually can not sustain much of a rally.
PMI was once a high flyer trading over $50 a share, dropped to $.20 during the credit crisis, and then rebounded to almost $8 a share. It has since fallen dramatically. If this PMI rally is a repeat of the 2008-2010 rally, then we could see PMI return above a $1 and rally hundreds of percent from current levels. History can repeat itself, and while I am not convinced it will occur here, we know in the penny stock market stranger things have happened.
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