I was early and exited with losses a while ago. looking at reentry in the 5s. t boone pickens thinks oil will bottom before rig count does. he's using baker hughes oil and gas rig count as indicator - he thinks count of 1400-1500 will signal oil bottom count is currently in the 1600s
"Sell on the news" may provide buying opportunity. It rose going into earnings which were pretty good and then fell when they were actually released, Insiders that were selling in the 7's and 8's recently bought in the 5's.
could you elaborate? specifically comments about inventory (how does it translate to profit) and FDA approval in Dec (how does it translate into revenues - perhaps a bit of last minute orders but there is lag between orders and revenues)
$5's possible within next month or two - should be time to back up truck. inventory will still be increasing but rigs will still be dropping look for combined oil and rig count between 1400 and 1500 - T Boone P. says that will be bottom for oil price
there are many more. a few will ultimately be 10 or 20 baggers or more. most will slowly fade away. look for insider ownership and buying and for buying by knowledgeable funds (BVF Partners, RA Capital, Tang Capital and others)
Give it time. For example of what can happen, look at long term chart of SPNC. STXS is advancing technically and commercially and is doing a good job marketing its products. Sales should come with time. Stock price should follow - with time. I view current price as a gift.
yes i caught body but missed fxcm. these type of stocks are TA plays. few go straight to zero. after huge drop there is usually some pop. a stock that drops 90% can double and still be down 80% from original value. I have done well with very depressed stocks for longer term but I look for much better fundamentals and insider buying and a turnaround catalyst
while your target was not hit yesterday, you are up as of this posting. your trades have been spot on - buying on huge dips and then selling on pops. thus far you are well ahead of the buy and hold strategy. well done!
the risk is that it zigs and zags even if it goes upward. this gives it natural tendency to lose value over time even if oil is flat - because it is leveaged. over 3 yr period it will be down a lot with flat oil. if oil double over 3 yrs there is chance UCO will be flat. the sweet spot is oil doubling over a few months.