On BNN they had this hedge-fund guy, Einhorn, talk about some of his favorites, one of which was Sprint so I thought I would look at it from an EW perspective. It confirms the possibility that this stock may go up. This is in the same category as Starbucks which I do not understand either but it sure worked well! Here are the charts, starting with the short-term.

From a low of $1+ back in November 2008, out of synch with the market overall, it quickly regained  it’s composure by rising almost 6-fold after which it went comatose for nearly 2 years. As the saying goes, do not sell a dull market; this may well be a (wave b)triangle within an a-b-c correction from the lows. If so an explosive wave c is yet to come once the triangle’s waves d and e are completed. The stock should not trade below it’s most recent low and the “thrust”, if equal to wave a, should take the stock to $8/$9. Once there the $10 wave 4 retracement level is within spitting distance! Long-term this is all very plausible as can be seen from the long-term charts, arithmetic and log-scale;

The log-scale best illustrates the a-b-c corrective nature of the drop from $80 to $1. There is no need for this stock to drop further simple because there is no room left to do that. So the question is will this stock disappear entirely or will it rebound, or more importantly, will it rebound enough? As the stock has not completed an a-b-c yet from the lows a rebound is extremely likely, at least to the 4th wave of previous degree, in this case wave 4 of C at about $10. If it materializes that would constitute a gain of 150% or so.

Sherritt has doubled since it was recommended about one month ago ( basically on fundamentals and the e-wave count). I think it will go higher yet as the word is barely out and the count seems to suggest higher prices yet  ($8+?). Still I would tend to sell as we already exceeded the arbitrary 30% set for “accounting” purposes. One has to make one’s own rules as alpha can be extracted from the market in many different ways; by being brilliant which is hard to maintain for extended periods , or by being disciplined , which is equally hard but easier if your IQ does not allow the former. Personally I have lost every time that I  did lose by not being disciplined.

Recommended on March 18th, when it was slightly less than $2,48. Probably already more than 30% but who cares, this one is going higher yet. Cuban cigars anyone??? Now  soon you can have a green-card AND travel to the last bastion of the evil empire; guys like Kevin O’Leary should take note. Just to give you an idea how long this nonsense has been going on, more than forty-five years ago a rum and coke was known ,vernacularly, as a Cuba Libre , on the other side of the pond.

Sherritt had 5 –waves down into the low, should imply that it should go back to $5 or higher, perhaps much higher. This company is ( was?) run  by the ex CEO of Merryll Canada, his wife is a mutual fund manager and both are persona non grata in the USofA, all on account of doing business with the enemy. Never mind that “gitmo” is right there, while Fidel is technically all but dead and the USSR equally of no consequence.  Remember “our man in Havana”, the vacuum cleaner salesman, Ernest Hemingway and his “old man and the sea” and the “Bay of Pigs”debacle that embarrassed  Kennedy so much and now all but forgotten, and all that other good stuff?  Not that long ago this was for Americans what Mallorca is for the Swedes. A place to drown your sorrows and engage in some serious mischief while you could  still walk. These times are going to come back, at least in the next 5 years the embargo against this island will be lifted, the economies are going to improve dramatically and Sherritt will stand out as THE company to have seen all this coming. The chart even looks good, for a little while at least.