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[Costa]

NVTL traded nicely on Friday and I’m looking for continuation of the upward direction next week. The stock surged 8% or 26 cents to $3.44 per share after a report on Seeking Alpha, from analyst Rougemont identifing the company as a possible takeover candidate. Rougemont says "This stock looks cheap in terms of book value, which is $5.03. Also, the company has about $58 million in cash on the balance sheet with no debt. That is equivalent to about $1.81 per share in cash. A major wireless company might find Novatel worthy of an acquisition". From a technical standpoint, the chart shows that the stock is in a rally as %K line is rising on top of %D line as the price is back above 50-day moving average. Positive MACD action. The RSI is also rising along with the rise in volumes indicates buying interest in the stock. In addition, the stock seems to have broken out on the upside from a descending channel pattern and probably might target its 100-day sma around $4.29 or so. I would like to remember that NVTL is also a short squeeze candidate, with a short float at 12% (equivalent to 11 days of average volume). Can get interesting. Keep close eye on this one for a major rally to the upside.

6 Tech Stocks With Takeover Potential : http://seekingalpha....al?source=yahoo

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