Why is the stock price in a freefall? Every bit of news I hear from FSI is either neutral, or positive. Increased growth year after year, quarter after quarter, and yet this stock is being hammered down to 2 year lows. I'm down 40% now, since I averaged up to $2 a share a bit ago. I missed the conference calls due to being on the West Coast, and not wanting to wake up at 6am or so to listen.
Can someone provide some insight? Should I just wait this out? When will their polyaspartic acid factory be online? Etc.?
I don't want to panic, but I'm quite concerned as I'm a younger invester, and I stupidly didn't diversify across many stocks, and when this stock was up at $3 a share, I held on instead of taking some profits. Almost every stock I've gotten I've lost money on, so at this point, I just want to recover my money and probably pull out permanently... no amount of research I did in each stock did me any good. Sorry for ranting...this may not be much money to most investers, but I've lost probably $10,000 to stocks, and that's enough to dissuade me from staying in the stock market. It feels too much like gambling when corporations are performing thousands of stock trades per second using computer programs. I wish things worked the way they did with my Grandparents, and when people actually INVESTED, instead of daytrading to make a penny here and there.
Anyways, I would appreciate any help or insight into the nonsensical stock price plunge and continuous 4-10% pps drops, and where you think the stock is heading, as I don't think the company is heading towards bankruptcy, but rather towards rapid financial growth once their factory goes online, but even without it they're still profitable. Thanks :)
I hope you didn't panic and sell at the bottom. Maybe you should post here more often, seems to be good luck.
My take on the shareprice is that all indications right now are that the new plant is not producing much. Therefore profitability is not going anywhere due to the tether of input costs to oil. Even with record revenue, profits were down from last year. A bet on these prices is a bet that the sugar to aspartic will work sometime soon.
I didn't sell out, though probably not with the correct mentality. I almost refuse to sell out of a stock when I'm down because I would like to at least break even. I have not taken an investing course, but have been investing for over 10 years now. I have gotten some hits, but the bad plays are a bit excessive which I've found is occasionally my fault for being too impulsive or impatient, but I'm trying to fix that. I do not day trade though, and try to hold onto stocks for at least a few months, but generally it's closer to a year.
You're probably right about the plant. I recall them saying at one point that part of the purpose of the plant was to eliminate oil costs from the picture altogether, as prior to the plant, they needed to import from overseas or something to that extent, which has a price in oil attached, therefore eating into their profit margin.
I should probably start using rolling stops, or even better, learn to detach myself from my stocks, as you can't make money with emotions (unless you're Dr. Phil).
Thank you for the advice, I'll likely post on these forums more often. I just wish they weren't so quiet...the last post was about a week ago.
Sounds like you need to take some investing 101 classes before you go even further.
If you can't stomach the loses you are investing too much money. AKA - don't invest what you can't afford to loose.
Would you let your neighbor perform heart surgery on you? AKA - if you don't know what your doing, it's okay to ask an expert (financial adviser) to help you.
The market does what it wants to - AKA you can loose lots of money for no good reason/news/earnings ... ect.
But you really need to focus on YOURSELF and not FSI. If you can't afford to loose $10,000 ... why on earth did you invest the money? #2 if you feel like this isn't your 'grampas' market, you need to find a professional to help you get into the real world. Your logic is backwards too - as a young investor it's more forgivable to make risky mistakes as you have plenty of time to make up for it ... your grandparents are the ones that can't afford to loose a 10 ball on a risky company.
Buy more at these fire sale prices. FSI has been my largest single holding for the last 5 years. I do try to trade it, selling some above $3.0, buying back below $2.0. The reason it is my largest single holding is because I understand the polyaspartic (PA) technology (I helped develop it). FSI is the only stock I have that I would feel comfortable holding indefinitely - knowing that it's real value (which is a large multiple of today's stock price), will eventually be realized, probably via a buy out from a major Ag/chem company that will build a global production capability for PA. Many small stocks, (especially resource stocks) are close to their 2008 lows. FSI usually bounces back VERY quickly from these oversold levels. On Nov. 26 2008 stock was $1.05, a month later,Dec 31 2008 it was $2.29. Again on Nov 11, 2009 it was $1.13, and by Jan 20, 2010it had gained more than 100% & was at $2.29. Take advantage of this extreme undervaluation if you are able to!
I'm amazed too, esp. since 50% of shares are held by insiders. 20% of float is held by institutions, and I'm figuring one of them is selling out, and the volume doesn't hold up well to that. Either something on the inside is going on, or it's a good time to buy once the institution liquidates completely. I might be down a grand here pretty soon. One thing to remember though, the market is not based on logic. Volatility over reacts. Seems like it'll be a hot summer, but will world economics over rule? Also, if you play the market, your patience will be tried. I believe this WILL come up again. You just never know when.