Legible Inc. (READ:CSE; LEBGF:OTC; D0T:FSE) 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 after it came to market, it went into a severe bear market that ended when it hit a very low level at CA$0.085 in May of this year, although it did drop a little lower in June when it hit CA$0.08 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 bear market 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 bull market 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 U.S. markets. The company is commended on obtaining its most apt stock code.
Legible Inc.'s website.
Legible Inc. closed at CA$0.11 on September 9, 2022.
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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