Valentine Beauty Inc. (VLBI) has formally been around since November but it wasn’t until Tuesday morning that the chart flared to life:
Now as you know, I love a chance to turn traders on to “blank check charts” like VLBI because they hit the market as a great mystery.
Right now, all we really now about VLBI is that it now owns the rights to sell the famous “no-surgery facelift” and other beauty products.
This stuff was pioneered by Leigh Valentine, who you might have seen selling her jowl tightening creams on QVC and elsewhere.
She’s a gifted saleswoman, in the QVC lifetime hall of fame. And now she’s selling through VLBI and getting the word out on Wall Street. (VIDEO)
In theory, VLBI can make a mint on global big trends, especially Baby Boomers wanting to stay pretty on the cheap!
Beauty products are roughly a $140 BILLION business. VLBI is barely an $9 MILLION company here under $0.10 according to initial disclosure.
How tiny a share of that huge cosmetic market does tiny VLBI need to look like a bargain once the analysts get their teeth into this stock?
Given Leigh Valentine’s track record, even that market sliver can materialize fast, so this may be a one-time shot at VLBI down here.
But today, stay focused on that mystery chart. Because VLBI has such a limited data trail, nobody knows where it “should” trade yet.
We saw this on Tuesday when VLBI briefly surged almost to $0.30 before immediately retreating back below $0.10.
Normally I’d say that until the market has more time to chew on VLBI, $0.10 is as logical as $0.30 and “fair value” can be anywhere.
But while the trade may still be wild, this one may actually be different -- and BETTER than random!
I’m impressed at how quickly VLBI set up a healthy consolidation triangle pattern from Tuesday morning with the lines coming in at $0.085.
That’s not a random walk! That’s a decent platform for an intraday breakout move. All we need is direction: will VLBI break up or down?
With only one CEO interview on the books so far, I personally think it’s more likely VLBI can wow us with an update than issue bad news.
Otherwise, you might be flipping a coin, but for pure “blank check” potential, the VLBI chart still beats the dime slots in Vegas right now!
So if you feel like a little gamble before the weekend, I am pleased to introduce you to VLBI. Now let’s trade!
See you soon!