Legible Inc. is a publishing company that connects authors and readers through open access to a global reading and publishing platform. It sounds like quite a good business to be in, especially with climate lockdowns looming.
The stock chart is relatively simple and easy to interpret. The 1-year chart shows all the history of the stock and on it we see that immediately it came to market it went into a severe bearmarket that ended when it hit a very low level at C$0.085 in May of this year, although it did drop a little lower in June when it hit 8 cents briefly, but from May the stock went into a basing pattern which is best described as a flat Pan base that has persisted up to the present. Essentially, this stock started life by going straight into a Stage 4 bearmarket which took it down to such a low level – it lost over 90% of its value – that it couldn’t really go any lower without going bust, and its only other option was to trundle sideways marking out a low base, which is what it has done.
The reason that we are looking at Legible here is that a relatively big buyer showed up about a week ago and bought the stock aggressively for a couple of days, which we can see from the heavy volume that drove up the volume indicators. Since there is no smoke without fire we can reasonably presume that this buyer knows something. This buying has not so far triggered a breakout from the base pattern because there was overhanging supply to be drained off, but it is clear that if such buying continues it will trigger a breakout.
On the 6-month chart we can see the action this month in more detail and how the heavy buying did trigger a big up day, but as it did not result in a breakout from the base pattern we classify it as a “preliminary” breakout that, should the interest continue, can be expected to lead to the real thing probably soon, a breakout that holds and ushers in a new bullmarket in the stock.
Legible Inc. is therefore regarded as an interesting speculative play at the current low price that has the potential for big percentage gains if it works out. The stock does not appear to be traded on US markets. The company is be commended on obtaining its most apt stock code.
Legible Inc. website
Legible Inc. READ.CSX, closed at C$0.11 on 9th September 22.
