Belinda this is not a stock that would qualify as a "Cost avg. buy" My recommendation was to sell at the 2.36 mark which was the stop loss point... i dont know your financial tolerance but as a long time investor my approach has always been avoid steep declines... i aim to triple my money every 5 years... if i dont like market conditions i stay in cash ... the main thing is to avoid losses that kills a portfoli... of course you cant play and never incur a loss so you minimize your risk with stop take your lumps and be patient and never get emotionaly tied to a stock.... this is the biggest mistake people make.... this a stock heavily shorted...shorts are generally professional investors and i have found they are seldom wrong and have deep pockets... this would be my advice right now if you are still holding a position.... support is at 1.67... resistence is 2.23 stops for longs is 1.86 (if this is broken we will test support at at 1.67) stops for shorts is 2.45... which if hit will trigger buying... i am out and based on info just supplied my entry point back into the stock is 2.26... break through resistence and challenge the shorts trigger... the shorts would defend and have 850,000 shares available right now to short with. in this model i dont miss to much of a run up but am protected if the shorts attept to drive the price below 2 and try to trigger the stop loss for longs at 1.86. my opinion only. Other stock i would asl you to look at is MITK and TCX.... both have bright future outlooks although i will let you know MITK is in a lawsuit that should be settled in early 2014 and if they prevail this stock will rocket upward
New & just saw this. Great info. I got caught at 1.99 before I could cancel the order. How long do you think it will take to come up? Heard institutions sell off on good news & then it comes up. Why are they driving it down? The company is behaving responsibly to survive. Obviously ok as 70 institutions invested. My time-line is short-1 month. Much appreciated.
The catalyst to move this stock up 3 fold is the asset value of this HRB JV which should be announced in next 60 days or less. Could happen anytime, and if favorable, those wishing to buy at $2.35 or $2.50 will be sadly left behind. Just do the basic math. Right now KWK can almost cover debt liability. The HRB has a 10-14 TCFE resource number. If only a fraction of that is recognized as a reserve, let's say 10%, that would add 40% to KWK proven assets and presumably add 40% to the market cap. I'm looking for a much bigger reserve number out of HRB. If it comes in half of the resource number that's enormous and the market cap should then finally reflect true value of KWK at $5-$6.
Thanks for you thoughtful response. It makes sense. I am gambling with the houses money so I might do just that before earnings in hopes that positive news will push this stock back up.