Back on the 6th of May I suggested that SWI might soon be a buy, however the danger was that the stock would trade all the way to $4. Here is then and now;

Again,click on the charts to enlarge. So the stock , not so surprisingly , did drop to the 4th of prev. degree and actually broke the channel by a little. This is now a buy;

The stock looks good here. It has retraced 60% of it’s entire value (I use $10 as a top, that one trade at $11 occurred in the middle of the night with an order for a 10 lot from Papua New Guinea ). It dropped to the 4th of previous degree, just cut through the trend-line and the RSI has turned up. What it has not done yet is drop the measurement of the triangle which could possible take it to about $3.50; not likely at this point. From here $6.50 and then $8.20 are reasonable targets (in a bear case!)

By the way, if you happen to enjoy technical analysis,(I do not) you might recognize the above pattern as some sort of Head & Shoulder formation, which would call for an immediate rise to the shoulder line.

Exactly a month ago we suggested that the stock could go to $8 or $10 if it went to the 4th wave of previous degree (that is on the way down). It actually went to $11 and then crashed as predicted by about one half or more. Here is the chart:

By having reached the 4th wave of previous degree and then some, the stock may have completed the up move for a good while. However, it also retraced almost perfectly to the bottom of a triangle, losing about 50% and doing so in a very clean a-b-c. This suggest that it could attempt a rise to $8.50 before anything else. The danger is that it has not (yet) reached $4 where it would (temporarily, perhaps) be a buy for a solid rebound. See chart below.

If the names of Wayne Huizinga, DeGroote, and the companies Waste Management, Laidlaw and Coolbrands rings a bell with you this stock would be of interest. It is in the cleaning business so you could not ask for anything more mundane than that. There is some financial engineering in the past few years. Otherwise the stock seems to have benefitted more than any other from QE2 which, of course, is nonsense. Anyway, here are the charts;

First the long-term chart. It is not totally relevant as the company has changed so much but one thing is clear and that is that this is not a widow & orphans stock. It got pulverized in 2005 (clearly out of phase with the rest of the world). Then after 3/4 years of wondering through the desert, or base building as it is technically called, the stock resurrects itself. First a lot of baby steps (1-2s) and then take-off. My guess is that it could go to $8 or thereabouts . After that a substantial correction should occur.