Entering a trade here.
ELOS is a screen stock -- meaning it meets many basic strong fundamental criteria.
But more importantly, the technicals show renewed strength after the latest ER. There may be some profit-taking here but with lots of cash and a new outlook, ELOS can run with a 10% short interest that had a good run.
Some basic DCF analysis gets targets anywhere from $33 - $39 as fair value now.
Fact is, buying it on the way down was like beating yourself on the head... you can only buy strength. That's what goes higher. ELOS has been a dog for so long, clearly some people will wait -- they won't be able to adjust to the fact that ELOS is possibly not a dog anymore. Then the shorts capitulate, the swing traders join in... and you've got a nice run.
But it all takes time. For now, the sellers continue to bail out of strength, assuming this is a brief moment of strength for ELOS that won't last long. We shall see.