Intraday market notes & observations – March 31

3:15pm ET: Chart of the Day: Synthesis Energy (SYMX)
Tags: SYMX, clean coal, chart breakouts, Chinese investing

A provider of environmentally friendly coal gasification systems, Synthesis Energy (SYMX), has been basing between $0.80 and $1.40 since the middle of 2009. It finally broke out of that extended base earlier this month (March 4) on heavy volume. Since then, the stock rose almost a buck on abnormally heavy volume, a sign that institutions were sitting up and taking notice.

And for good reason. Today, China Energy announced that it paid nearly $84 million for a 43% stake in the company, adding that it plans to buy a larger stake if the company meets certain milestones. One of those milestones is that the stock must reach the $8 level. (Read press release for more info.)

This is fantastic news, and investors thought so, too. The stock jumped 43% on five times normal volume. As of this writing, the stock is trading just shy of $3. If it’s going to make that $8 target, it’s got to move by $5 in the next six months (if I’m interpreting the press release correctly.) Its all-time high of $16 is double the current target price, making an $8 goal seem quite attainable, considering such positive support.  There are no options, but at this price, who cares? 

Fundamentally, the company’s balance sheet indicates rising revenues over the past year, and it has beaten earnings estimates for the past three quarters. For a further discussion of the company’s fundamentals, take a look at this recent article on Seeking Alpha.  Next earnings report is scheduled for early May (May 2- May 12). 

Take today’s poll: Did David Sokol resign voluntarily? Scroll down right column to cast your opinion.

1:10pm ET: Intraday support/resistance:
SPX 1325/1331
DTX 526.25/532.25
DJIA 12330/12390
Nasdaq 2770/2782
OEX 593/595.5
VIX 17.3/17.9
Average VWAPs: +57/-31
Trin range: 1.20 – 1.50 (rising Trin an indication of downward pressure)

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