ShotSpotter, Inc. (SSTI) was mentioned on "Mad Money" last night. In his "Homework" segment, Jim Cramer followed up on a couple stocks that had stumped him during earlier shows. He said that both of these names were ultra-speculative including SSTI.
SSTI is a company that helps law enforcement pinpoint the location of gunshots with a cloud-based network of audio sensors. Shares trade at 19 times sales and Cramer said he would avoid the stock.
Curiosity got the better of me and I had to look at the charts and indicators. Interesting. Very interesting. Let's take a look.
In this daily bar chart of SSTI, below, we can see an impressive uptrend from last September. Prices are up from around $10 to over $60. Wow! SSTI is above the rising 50-day moving average line and the bullish 200-day line.
The daily On-Balance-Volume (OBV) line is generally positive and rising over the past 12 months. A new high in the OBV line would help to confirm the price gains.
The Moving Average Convergence Divergence (MACD) oscillator is bullish but has started to narrow and could signal a take profits sell in the days ahead.
In this weekly bar chart of SSTI, below, we have a bullish picture. Prices are above the rising 40-week moving average line.
The weekly OBV line is strong and at a new high and the MACD oscillator is very bullish on this longer time frame.
In this Point and Figure chart of SSTI, below, we can see that prices are stretched to the upside but we can also see a potential $100 price target.
Bottom line strategy: Buyer beware. This is a speculative name and prices are extended. While we may have a $100 price target we can also see that you have to risk to below $45 to go long. I am not crazy about that ratio.