MCIO is seeing a much needed pullback off its peaks.  $2 is the daily 200 period moving average support which is attempting to form a hammer on this 8^th day under the daily 5 period moving average break, $1.80s is the weekly 15 and monthly 5 period moving averages.  Since this is a thin stock with wide spreads the moves can be exaggerated both ways.  This factor has to be taken into consideration.  If MCIO slips to mid $1s, I will add some more shares to my core position.  As I warned before, this is a very thin trading stock and no one should be playing it without knowing the liquidity factors that come with thin stocks.  Average ten day volume is around 5-6,000 shares. A heavy volume day is 20,000 or more shares.  The ability for this stock to absorb the pullbacks is impressive so far.  Remember, a heavy volume day can spike this stock right back to all time highs immediately. 

My thoughts on this longer-term speculative play have not changed.  http://www.themoneyblogs.com/undergroundtrading/my.blog/mcio-possible-20-bagger-only-for-longer-term-speculation-players.html

I see value in the assets (revenue generating subsidiaries and properties), growth with the mining/retail distribution of the gemstones (Madagascar sapphire bearing properties) and most importantly, the sexy parabolic upside with the ‘found money’ that comes from the 75% waste by product from the cutting/polishing of sapphires that can be used to supply a superior material to the semi conductor, solar cell and LED industries.   In summary, this is a mining, solar, semiconductor and led technology play all wrapped up into one stock.

Last week, MCIO issued a company update from the chairman. 

http://marketwire.com/mw/release.do?id=862264&k=mcio

The company has painted a simple formula for its benchmarks.

Completion of Audits = Filings = OTCbb -> Amex

Completion of Financing ($50 million) -> Production (2009) -> $$$

The chairman also mentioned applications of sapphire in LED (light emitting diodes) lighting.  This growth industry is seeing a lot of interest and venture funding.  Energy is a big topic these days.  Anything that can reduce costs and raise efficiency in the process is worth paying attention to.  This is why LED sector is seeing a lot of interest. This is another application for the sapphires for MCIO which is a positive.   

The most interesting part of the release that the market overlooked is the second to last paragraph:

"As the company gains stature, we continue to attract interest from some of the most profound market players in the high-tech industry. We are in talks with many major players in regards to our additional strategy of distributing our sapphires to the semiconductor, solar and LED industries.”

There’s a big clue in those words.  Any type of ‘talks’ implies interest from other parties.  These other parties, according to the company, are considered “some of the most profound market players…”.  This could be a foreshadowing of a deal or deals in the works.  This could be very significant.  Time will tell.  In the meantime, I am watching the aforementioned price levels for triggers.  Good luck, if you are a fellow investor.  My longer term targets still remain at $10-12 levels.