This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Momentum 2004: Return of the Swing

On the sleepy final day of 2004, shares of BOS Better Online Solutions (BOSC - Get Report) are going out with a bang, as momentum traders appear to have found new flavor-of-the-moment stock.

In midday trading, the stock of the tiny Israeli technology company were up $1, or 35%, $4.35, emerging as the highest percentage gainer on the Nasdaq. By lunchtime, BOS had traded 1.2 million shares, nearly 100 times its normal volume.

For the week, shares of the company with less than $6 million in annual revenue are up 83%, with the most of the action coming in the past two days. Before the big gains, shares of BOS were looking at closing out 2004 down 18%.

There's little obvious news driving the trading in BOS. The last press release from the company was on Nov. 29, when it announced third-quarter earnings. They weren't much to cheer about.

In the quarter, BOS lost $385,000, or 9 cents a share, compared with a profit of $166,000, or 10 cents a share, in the year-ago period.

Rather, what appears to be driving the sudden interest in shares of BOS is the fact that it's a so-called low=float stock with just a few million shares available for trading. The scarcity of shares makes a stock like BOS prone to volatility, when daytraders grab hold of it.

Throughout 2004, daytraders and momentum players have flitted from one obscure stock to another, feasting on the volatility created by their low share count. It doesn't matter that many of these companies have dismal business prospects.

Some low floaters such as Travelzoo (TZOO - Get Report), the online travel publishing company, which is up more than 1,000% this year, have demonstrated incredible staying power.

But most that caught the fancy of traders earlier this year are now all but forgotten. Remember the frenzied trading in shares of (MAMA), IPIX (IPIX), Magal Security (MAGS - Get Report), Unifab International and Vaso Active Pharmaceuticals?
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BOSC $2.16 0.00%
MAGS $4.89 0.00%
TZOO $7.63 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs