Over 40% gain on my holdings from buying most below 2
It's now overbought, and too many up days in a row.
I'll wait for a correction to possibly re-buy, but I wouldn't short, it's fundamentals are too good.
Yep, low liquidity makes for higher risk.
On bad news it will fall fast and hard. But on good news it will pop fast and huge.
One thing that amazes me is that AIS can have such good liquidity and still be so volatile. That makes it a GREAT trading stock.
That's a good point. DUSA only has around 25 million shares outstanding. It's a double edged sword. When crude went nuts in the spring of 2008, some very small float stocks like MXC and PDO went into orbit. The opposite can happen just as easily. You have to catch it right. FUEL has an extremely small float. You have to be able to watch it and stay on your toes.
By the way, I personally wouldn't buy DUSA or any stock for that matter after it has already run-up so much from it's bottom. I already am holding a very large DUSA position bought under 4 and expect a pop in March. But I wouldn't be buying it, or at least very much of it at current prices. So, you can see, I'm not here to pump DUSA or anything else. Actually, I prefer not to mention the stocks I'm in, especially when they are low liquidity like DUSA.
No debt, pe under 20, double digit growth. If you dig into their story, they moved to an annual January price increase from price increases spread out over the year, meaning revenue growth will likely be lumped into the current quarter (customers buy just before January) making a pop a reasonable possibility on their March earnings report.
I think you should be able to re-buy at lower price, hard to say at what price if there is a pull back.
If I was in your place, i would have kept part of the position, since the large volume and price move the last 2 weeks might indicate another event in Antares pipeline.
And I was also proven wrong many times in the past.....
I in fact believe there are lots of positive events upcoming in their pipeline, and again holding like you are doing is a fine strategy.
But I had too much capital tied up in one stock and it's short term overbought. I have a set of trading rules that have never failed me, involving risk mitigation and the overbought vs. oversold status of stocks. Those rules told me to sell now. It wasn't the fundamentals that forced my hand.
Good luck to you.
There are a couple other considerations that led me to sell now.
I am always very suspicious of analyst upgrades that come AFTER a stock has a tremendous run-up. It usually means the parties the analyst represents want to sell into whatever buying they can produce. Why didn't the analyst upgrade come when it was below 2 and a really strong buy?!!!
The other consideration is the very high volume today. Extremely high volume can represent exhaustion.
Well, I considered selling only a portion, but finally decided to sell all. Looking at the monthly chart, when the RSI hits 70 as it is now, it has always corrected soon after.
I'll look to re-buy after the correction. Again, the fundamentals are too good on this to short it.