Gus, James,
Feel compelled to respond, probably too much, re:Jubimer TA comments.
Jubimer states that TA re: Ampex is irrelevant & bullshit & proceeds to explain a situation why stock dropped. Special situations happen with any stock (not unique to Ampex) causing spikes or drops in stock prices & change things both fundamentally & technically.
However much of the time stocks trade in predictable fashions. Ampex is no exception. Jubimer further states that stock went from 6.5 to 10 several times since summer because of fundamentals. Here he gives him self away not having a clue about TA.
Let's review the predictability of Ampex during the past 9 months.
From July-Dec. Ampex traded in a 6 to 8.5 range 7 times. Assuming you knock off 1/2 point above & below the range, you could have bought the stock several times @ 6.5 and sold it @ 7.75. You miss a little of the upside & may not quite get the bottom of the range when you buy, but you're in the game through all these cycles. If you had done this, your net cost would have been about 1/8 (just about where NORMAN thinks stock is headed).
IMO, here we are again, at the beginning of this same range that occurred last year between Jul-Dec.
I have started again playing & that was purpose of my post Tuesday.
Also between Dec & late Jan. AXC traded between 8.5 & 11 3 times. You could have made money 3 times during that cycle. When stock breaks above range (8 1/2) as it did in Dec. , this is your new entry point since you sold @ 7.75 during the upmove. Now if stock breaks below this new lower range of 8 1/2 as it did late Jan. this exposed technical deterioration. Combining this other with TA indicators, it was a clear warning that AXC had broken down & would probably head back to the 6 to 6.5 area where it now is. That is what I warned people about on this thread at that time. No one at that time could possibly believe that this could happen but here we are again. Even though the technicals except for oversold conditions are still lousy, it has strong support on the charts here.
Obviously very few here would care about trading this thing because they feel it's going to the moon & don't want to miss out when that happens, so here's my suggestion. If you own 10,000 sh., use this strategy with another 5,000. Make $$ on the 5,000 while the stock is churning. You've still got the 10,000 hanging & waiting for the ultimate big move. And if everything is going to work out well with AXC as everyone but NORMAN expects, what's the risk?
Another Jubimer absurity: If your game is buying a few thousand shares for a 1 or 2 point pop, AXC is not for you. What nonsense; any speculator will gladly take a 1 point pop on a $6 stock with little risk. That's the same as a $6 pop on a $36. There's a $36 stock I'm doing this with like clockwork right now. Of course this strategy must be used with a stock you feel will ultimately trend up!
Finally, I do agree with Jubimer about the possible current action of the stock as it relates to the MM (specialist) but that is nothing different with any other stock. Also, as I said before, the 10K will be very interesting to see what's up with AXC.
I guess I've run off enough at the mouth.
Best Luck, AE |
