SPAR Stock Analysis

Reader Michael B. wrote in to talk about SPAR, Spartan Motors.

“Anyhow, today I am letting you know about SPAR (Spartan Motors). It looks like the stock is breaking out on large volume. See the wonderful “W” pattern and how today it may close at above the previous resistance of the $24.30 level?

Keep your eyes on this one, as a lot of shorts have bet the “wrong way” on this stock, and I think that it could as high as $28 in the near term.

The stock is currently ranked #34 on the Investors Business Daily Top #100 stocks list but it has a chance to move up to around #15 or so. Also, Vector Vest has a “fair value” target of $34 on SPAR.

Float is 19.3 million with about 6% of it short:

I entered a long position earlier today and as always advise to do your own research before buying or selling any stock. Also, the “new” short numbers are coming out within a few days, and I am sure that there are a lot more shorts than the current 6% and they are getting squeezed.

My call on SPAR is purely technical as I it going higher on very good volume today, and even when the market was selling off earlier today, the stock held strong. This tells me that there are more buyers here than sellers.”