Weirdharold seeks help learning T/A

[Weirdharold]

I am starting this post to place charts I am trying to work on... If you do not know I am really very new to all this and would appreciate any comments on what you might see in the charts which will help me learn.

This first chart is NMTI - NMT MEDICAL INC. which I am gonna call a head and shoulders pattern... if I understand them right this chart should be about to reach its predicted bottom?
This is a chart from this morning, but here is a link to the delayed chart on Stockcharts.

Here is a little DD on it.

NMTI Overview
Name: NMT MEDICAL INCORPORATED
Address: 27 Wormwood Street, Boston, MA, US
Telephone: (617) 737-0930 Website: www.nmtmedical.com
Facsimile: (617) 737-0924 Email: investorrelations@nmtmedical.com
Business Description: The Company designs, develops, manufactures and markets proprietary implant technologies that allow interventional cardiologists to treat certain kinds of cardiac structural heart disease through minimally invasive, catheter-based procedures.
Details
CEO: John E. Ahern
Employees: 115
Issue Type: CS
Market Cap: 100413290
Auditor: Ernst & Young LLP
Last Audit: UQ
Industry Classifications
Sector: HEALTHCARE NAICS: Surgical and Medical Instrument Manufacturing
Industry: Medical Instruments & Supplies CIK: 0001017259
SIC: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS (3841)
Profitability Management Effectiveness
Gross Margin: 78.5 Return on Equity: NE
EBIT Margin: -28.0 Return on Capital: -21.5
Profit Margin: -28.0 Return on Assets: -17.6
Share Statistics
Outstanding: 12939857 Float: 12653054
Short Interest: 225305 as of (2007/07/10)
Short Int Ratio: 2.8 % of Float: 1.8
Non-Corp. Insider Hold'gs: 2.2% as of (2007/07)
Bought Prev 3 Mo: 0 Sold Prev 3 Mo: 0
Institution Hold'gs: 66.7% as of (2007/07)
Total Held: 8646255 Institutions: 45
Bought Prev Mo: 1997046 Sold Prev Mo: 341464

[BadThad]

I see a stock ready to make a move! I didn't check the company financials, but it's way over sold, RSI is down and MACD is starting to crossover. A little more DD is needed to see what's brewing with the company and to see if there's a reason for the down-slide. If it's just from bear market jitters, this stock should explode to at least it's 50MA soon.

[BadThad]

Ouch....just looked over a little more info.....personally, I'd avoid this stock because the company is losing money hand over fist. In general, I don't like any pharmaceutical/medical stocks because of the gov regulation. Having worked in the pharmaceutical industry (R&D) for 10 years, I have pretty good insight to the processes involved. Basically, the FDA has you by the nads.

Now, little disclaimer, I do have one exception in my portfolio, TSXT, because they are all OTC products. The FDA doesn't have a whole lot of effect on the OTC market unless there's a problem.

[Weirdharold]

Thanks for taking a look Thad and commenting, What caught my eye on this originally was the fact the president of the company invested about 15 grand back into the stock of the company... I then looked at the chart and thought about a tramp play... then saw my first head and shoulder pattern and tried to find out as much as I could about the pattern... then for kicks and grins thought I would try to calculate out where the bottom "should be"... so far it hit a low of 7.12 and is in a very slow upward arc up to a high so far today of 7.59...

Like I said this is the first head and shoulder I have ever seen and have no idea if I calculated everything right, (I guess if I did... can expect another down trend to get that other .12 that I calculated it should fall ;) ) that is why I really put it here was to get anyone that knows what they se in a chart to comment so maybe I could learn more... Now I just have an eye on it to see how it works out.

[BadThad]

I understand, I'm not very strong in TA or I'd offer my opinion. I wish I could tell you more, but you need someone stronger in TA than I for that....that said, I don't really see any flaw in your logic/deductions.

I know there's a lot of pure TA players on this forum, but I try to use some company DD before I buy 95% of stocks I play. Number one, I look at product....then I look at financials to make sure they will be around after I put my $$$ in. LOL A lot of pure TA plays don't meet those criteria for me.