ValueClick: A Greatly Undervalued Internet Play - going down

15 thg 10, 2013

Background: "ValueClick (VCLK) is an anomaly. It's the rare Internet company trading at low multiples with tremendous growth potential. We regularly use screening tools to check for undervalued companies in the Internet sector. Our search often returns no results due to our strict requirements for a reasonable margin of safety. After the recent sell-off in the market, ValueClick showed up on our radar as an interesting investment opportunity."

seekingalpha.com/article/1740992-valueclick-a-greatly-undervalued-internet-play

Undervalued or not, large downward gaps in May and August, and a strongly impulsive downward move at the start of October point to an ongoing downtrend.

Short opportunities:
- resistance at upper MLH (solid blue) around $19.70
- resistance at sliding parallel (SP) immediately above that (dotted red)

Breaching the SP & warning line above could signal end of downtrend & an opportunity to buy for valuation reasons without trying to catch a falling knife. (Esp if VCLK exceeds$21.84, negating the final ABCD pattern.)