Know when to get in, know when to peel some off. But keep a core.
There is a small band of the same ol' story bashers here. They can make you $ if you have the sense to think for yourself and act accordingly. :)
That really depends on your time line, I have purchases in the 1's through the 5's, but we're only 5 minutes in to the first quarter of my game, bulls scored a touchdown in April, bears tried to run it in to the end zone Aug 14, but our deffense stopped them in their tracks with a T-1 halt, and they had to settle for a field goal. Bulls have possession again, and we have a strong offensive line. My 2018 initial horizon will look back here at anything with a single digit price tag as dirt cheap, that's just how the game is played, but more importantly, how it's won, trading in and out of a stock too frequently leads to less gains and more broker fees. I'm as calm and confident as ever in my choice to invest.
There are opportunities to capitalize on volitility, but if you don't have a plan, you'll likely be chasing gains the whole way to the end, and miss some great movements alog the way that you didn't expect. Not many people can catch it both directions, you'll find that you're good at the bull side or the bear, pick one, and stick with it.
This is the place to be all over the stock and getting friendly with it, though it won't be evident until later, after a few announcements, a short squeeze, more good revenues, new business deals, financing concerns proved to be non-issues, etc. Then everyone will tell you how they saw it coming even though you don't see them here now telling you to get both feet wet, and BUY BUY BUY! :)
Stay the coarse, keep doing the homework, and you'll easily tell the difference between real trouble, and fabrications by theives that create serious buying opportunities.
Not all shorts and bears are bad guys, just the recent ones responsible for all these frivelous lawsuits, to try to keep selling their "sky is falling" propaganda. By the way, did you see how serious the market takes the ambulance chasers?
I agree one needs to think for yourself and act accordingly. One should ask themselves "Is a company that has burned through $90M selling 10 year old technology, is in default of its loan agreement, has announced further dilution with lower QOQ revenue and twice the loss the analyst estimated in teh last quarter is a good buy?
I thought about it and you are right for once. It is a GREAT buy.
You see a company that “burned through $90M selling 10 year old technology”. I see a company that has vast industry experience and made significant developments in recent product launches. Biolase is still in the early innings of an industry changing phenomenon. Biolase revenue from 2010-2013 is 26, 49, 57 and 68. Next year they expect imaging revenue to grow from 6.8M to 15-20M. Revenue trending….UP.
“Default of its loan agreement” – For Biolase this is a very minor pebble (not even a bump) in the road for Biolase. The covenant will get renegotiated. It has created a great risk/reward entry point under $90M valuation ($3 per share). Biolase may even be cash flow positive in 2014, which means the $5M offering would be more than enough.
“Lower QOQ Revenue” – OK, no serious investor looks at quarter over quarter comparisons for a company that has seasonality as drastic as Biolase. Q4 last year was 1/3 of their revenue. It is about the double digit revenue growth over comparable quarters!
“Twice the loss the analyst estimated…” - It’s about the future. They missed not because of a significant slowdown in revenue growth. There investing in marketing, sales force and other S&A items. This will lead to increased profitability and revenue in future quarters.
Recent events have created a great buying opportunity of a company that could be approaching $100M in revenue by 2015, brink of positive cash flow and profitability in 2014, potential monetization of their other patents and future product lines! All for $60M market cap!