I think Gravity is a great stock. Strong balance sheet great cash flow and a new product. I originally got in early under 2 and added a few times on dips. I didn't sell in the 3s like I probably should have and might regret a few days.
Anyways got out at 2.75 for a nice little profit. Here is the main reasons I sold:
1. I expect lateral movement for a few months now. Up and down between 2.50 and 2.90. Although I agree with many this could very well be a $4-5 stock I dont see that happening for several months if not even this year.
2. Doesnt seem to be a ton of momentum over RO2 like we were all wishing. Its not the best sign when a company releases a product and the stock drops significantly right after. I'm no video game expert and I maybe wrong on this.
3. Still not clear on what the cash per share is at the end of the year. A lot of you are probably like me and bought in with the notion stock is trading for less than cash. Well one thing is for certain it no longer is. I still thank Gravity is cheap, but unless you got in under 2 its going to take a long time to see a ton of gains.
My gut at the beginning was telling me to get out at 3.20 cause that was my margin of safety. Unfortunately I got a bit greedy but was still able to book a handsome profit.
Main reason I sold there are a few other opportunities I think I can earn a much better return on over the next year so I've shifted my money elsewhere. Still think Gravity is a great stock just dont see much more movement for the next 3 or so months. If anything it may retract back to 2.25 - 2.45.
Anyway wishing all of you the best!
"heck of a call jonas 10x on the retrace back to $2.25-$2.45."
No luck or coincidence of course, he can see the future. :)
We all have our reasons. For what it's worth though; It seems to me that your selling arguments 1-3 are based solely on your gut feeling and fear of losing your profit instead of facts. Expectations for the near-term stock price and momentum does not count as good reasons to sell (or buy) in my book. ;)
If I had listened to my gut feeling at 1.16-1.20, I never would have bought GRVY in the first place.
"I still thank Gravity is cheap, but unless you got in under 2 its going to take a long time to see a ton of gains."
It will take no longer than if you got in at 3.00. Your purchase price has nothing to with it. If the stock goes to 5, the profits counting from today (or any other day for that matter) will be the same whether you bought at 2, 3 or 4. Your total profit will be affected, but that has nothing to do with the decision you are making right now.
Now on the other hand, the fact that you have found other opportunities that you find more attractive, is a great reason.
Good luck to you as well and congrats on the profits you made!
DG, regarding the following:
"It will take no longer than if you got in at 3.00. Your purchase price has nothing to with it. If the stock goes to 5, the profits counting from today (or any other day for that matter) will be the same whether you bought at 2, 3 or 4. Your total profit will be affected, but that has nothing to do with the decision you are making right now. "
Agree with you in full. The problem is I think it will take years to go to 4 let alone 5.
So if Gravity were to drop to 1.75 I could easily buy shares knowing it is trading below cash and that is the likely floor.
Hard to say such a thing for people that got in at 3, 3.20, 2.75 2.65 etc.
Basically I could make a lot more with other opportunities while Gravity is in a sideways movement between 2.45 and 2.75 than I can just holding and hoping it goes to 4.
Point 2. is the crux of the problem here. Momentum got stopped dead in its tracks at a time when it should have exhibited a clear follow-through on the heels of RO2 being released. Been very quiet since then. Seems several have cut positions by half or sold out fearing no further catalyst near term.
Are you kidding me? The game just launched. Go ahead and sell, I'll pick up your shares. Go to youtube and look up Ragnarok Online 2, see how many videos were uploaded just today, just this morning. Go to the forums, look at Facebook.. it's just the beginning..
Awesome comments. I have to be honest, I trimmed my stake around 2.70, as well. Still love the stock, but I think you're right that the near-term catalyst has passed and while there's good value in this going forward, it can easily fall into obscurity for a good while and there are compelling opportunities elsewhere. And I also admit that I was wrong by underestimating the momentum and optimism coming into last week's announcements. Greed took over a bit and when you couple that with the on-paper strengths that this company has and it leads to undisciplined decisions. Profits should have been taken when it was higher, but it's an unnatural move to make sometimes.
I know I've read many times about how you only make money when you sell--meaning sell discipline is really as large part of success--but in practice it can be difficult to adhere to. I know I still struggle. Either way, it's always helpful to evaluate your mistakes, whether they cause you to lose money or even make money, because it only makes you better.
Each person has to decide there own sell, buy or hold risk level
After all most of us have worked hard for the money that we use to trade with.
Care to share any of the other prospects that have lured you away from GRVY