I have written about VKNG Viking Systems Inc several times already and indicated that I would accumulate the stock after the gap up that occurred on 9/8/2010. At that time I was unsure if VKNG would fill the large opening gap or not. So far it has not filled the gap and has instead shown price strength. Today there are some big blocks going through and VKNG may soon bust topside and especially as we get into next week when they officially launch their 3D HD minimally invasive surgical system that is extremely competitive against intuitive surgical’s (ISRG) much higher priced robotic surgical product.
This system from what I have read has the potential to ‘rock the world’ so to speak. If surgeons can do minimally invasive surgery in 3D HD with the ease and freedom of movement that comes with only wearing a pair of sunglasses then that is simply huge in my opinion. It is a possible game changer.
I suspect that there were many reluctant longs who were afraid to go long again after that opening gap. Also there were likely many shorts who wanted to short it heavily in the believe that the gap would get quickly filled.
That psychological dynamic is likely what has kept the share price higher. The shorts had to cover and the reluctant longs felt they better get in late than never.
I really don’t know what exactly VKNG has up its sleeve that could launch the price into the stratosphere. But the management definitely has plenty of reasons to see a much higher share price.
It would be great to see their product get free exposure in the mainstream media or other channels. Then maybe some sales traction could follow.
Even better would be some type of deal with ISRG or other distribution channel, perhaps in Asia. Anyway I could speculate much more on this, but I am long because of the long term price chart of VKNG.
I expect 1 dollar to be hit before the end of the year. Then I expect some type of selling to occur at 1 dollar which I believe will eventually be bought for a move much higher than 1 dollar range.
VKNG has a tendency to move very fast because it has such a low trading float. This can be both good and bad. Its great when the price moves higher, but the same can happen on a down move as well. It is the nature of VKNG to sprint higher first and then settle down in a new range. Sometimes these ranges can be very large but should not distract from the viewpoint that the stock is in a predominant bullish uptrend.