Look at volume right after the dist cut. Over 20 million shares in the following 10 days. I'm not being critical of the cut necessarilly but it will take time for the stock to find a new audience. The holders of those 20M shares won't be back at any price. It just doesn't fit their model any more.
That said I believe the stock should trade $4.xx now and higher still with news. Sharp investors will be rewarded for their patience IMO.
agree, but strangely all the highly volatile stocks on my watch list moved less than the market (except 2) whereas they usually are at multiples of between 2 and 3.
For this stock i agree that there has been a change of investor type. I would say it is out of favour with Income funds for the time being. Also i think speculators maybe aren't aware of the fact that dividend reinvestment shouldn't mean a stock loses value. And finally, equity funds may not have discovered this or are currently chasing other securities.
A lot of counter cyclical strategies are popular on the market at the moment so just wait until it is our turn. For this reason i only purchased half of what i was thinking because it may fall a little more before a surge happens.
looking to hold for a couple of months but won't be afraid to sell and use the money elsewhere and then jump back in again.
I sold my qid early last week with a very tiny profit but I will go long DXD and/or QID soon. Whether anyone cares, the market internals are breaking down even as price is moving up. Something gonna give very soon. I suspect when that happens a brand new low will be on EROC's future.
I do it is zero, but at 2.80 it will be a quadruple so at 2.40 it would be 8 times, lol. now only at 51k shares. averaging in is averagin in. the value is there I dont care if I get the low, cover your shorts phoenix you didnt do so well on your last positions shorting the indices have you covered yet or you still chasing?
I can't count the number of times I invested into a stock, it goes down 20-30% from my entry point, I double down...A bit later, my double down is *way way* up. If it was a good investment at the original price, how much better is it at a 20-30% discount?
Personally I already sold PUT options on EROC. I get free cash and if they force me to buy it at $2.0 to $2.1...Well, i'm happy owning as many shares as they want at that price.
"....but I dont expect another drop but will double again if it gets to 2.80 "
Then what will you do at $2.40? quadruple your bet?
I honestly believe that would be a very bad mistake. Reason is that you bought at say $3.00 and it drops to $2.80. Face it you made an error and you should not chase it down. Only buy more shares when your original position is showing a profit. It prevents you buying "all the way down" and no one knows how far down that is.