It's Sonic Time

So how did we know back in April that the $2 per share Sonic Foundry Inc. (SOFO), a digital media company would went on and gain 60% in just half year? In April when the stock was still trading around $2 per share we gave the stock a Strong Buy rating given the facts that the company's technical chart, financials and insider transactions all show the stock would be going much higher.

The insider transaction chart was showing bullish signal as all transactions have been purchases of stock. Even after we began coverage, the top management was still buying showing storng support.

The technical chart on the other hand first show positve sign back in mid March when the 50 day moving average crossed on top over 200 day moving average to form Golden Cross which was also the reason why we began coverage on the stock. Although the stock dropped from May to July, since then the stock has been on the rise again and should be going up much stronger as now both 50 day and 200 day moving average are going up.

The stock on Friday rose another 15.77% to $3.67 per share after the company annouced new medical center has expanded adoption of the company's web communication system. The breakthrough the company is bringing to the medical industry should just keep helping the company's stock performance. Don't be surprise to see the stock in the 10s in the future.