What's with todays drop, any news? I know the market was down today but a 3.43% drop seems unusual for a day without any news. I don't get the WSJ, New York Times or Barrons so the only news I get is on Yahoo, and yahoo doesn't show anything for RPM.
g_edwards, RPM is trending up as all trending indicators show this. However, even stocks trending up have to pull-back a day here and a day their to find the new support level.
If a stock went up every day, we would all own it. That's just not the case.
Daily price fluctuations can be deceiving. A stock price can go down a day or two and still be considered in a bullish upward trend. What is important to recognize is the price of the fluctuations showing "higher highs and higher lows". The days it goes down, the support is at a higher price, and the days it goes up, it goes beyond previous prices.
Also think of the "float" changing hands. As the price goes up, some sell but others are buying. The float churns and allows support to be generated at higher levels and then new investors come in again and it churns some more, slowly working its way upwards. Building support at higher levels.
Remember that daytrader guy who told everyone how he sold back at $12.15? He's long gone and the price is higher. Invest in the trend, its your friend, just don't be fooled by intraday downticks. As for RPM, investors are buying the dips, ever so small, and it shows this over the last several weeks.
RPM has a beta of about 1.2, but I saw that since some months, it swings a lot more than that. I did some maths:
Last 1 month beta 2.1 Last 3 months beta 2.4 Last 6 months beta 2.3 Last year beta 1.2 (This one I am not sure, but I arrive at the same rate than the web sites.)
Also, last week and last weekend, there were a lot of publications and newsletters predicting another pull back of te market. So, people are nervous.
Per example, Changewave, Century, BusinessWeek and some others were saying many technical indicators were pointing to a pullback from 5% to 15%.
Another cause is the Fed: the market anticipated a cut of 50 base points and it seems the cut will be only 25 base points. It affected yesterday market.
Another cause are the institutions. They need to produce their semi-annual returns for June 30th and they are very nervous. They had to cope wth the 4 options ends last friday and many of them were under invested during the last 2 months rally.
So, you see, RPM can be affected by many different things not at all related to the stock.
One small advise: if there is no news on RPM website, Yahoo or MSN bout RPM, the moves are market wise. Just keep the stock in your portfolio, collect the dividends and wait until the interests rate goes up...:). On the long-term, it can't be a winner.
Just for your information guys, I did some stats last sunday (It was another crappy rainy sunday in new England).
My best investment returns over the last 15 years were about investments I kept for more than 3 years. Even considering the last 3 years downturn, there are only 3 stocks that hurted me really bad. And it is because I sold them. f I would have kept them up to June 1st, I would have cut my lost about them from 60% to about 10%.
I found out that if you invest in good companies, whatever the market will do on the short-term, one day or another, the market will make it valuable. So, the trick is investing in quality companies (Like RPM (that I beleive of quality).