I don't often post since I sold off my WSP on the run up.
I'm watching for an entry point. I'm afraid that Kaiser
is going to turn out to be right. I'm basing that on an
experience I had with a VSE stock. Heavy trading, stock
financed, looked good. The house that did the financing
took a bunch of stock and options. I assumed that they'd
want to pump up the price before they unloaded their
paper. Instead, they dumped their paper and kept dumping
their paper until they'd driven the price into the ground.
Now the company is going through a consolidation. You
get 1 for 9. I unloaded before the consolidation. Took
a 65% hit. Their goal is to trade paper for cash and if
they can get 2.00 for a piece of paper, they'll take it,
and if the next piece is 1.75, they'll take that. The
paper is just paper. They'd prefer it to be in your pocket
and the cash in theirs.
Even if they don't unload everything they've got, my
experience is a 30% drop from the financed price. If
they finance at 2.00, then look for a bottom at 1.40 plus
or minus. I'm going to watch for a chance to load up.
Remember that the last time their price tanked, it went
under fifty cents. If the bottom would hold around 1.50,
that would be a big improvement. The market would be
attributing a tripling of the bottom value.
I like WSP. I've traded it for years. Always done well with
it. Just got to ignore the hype, take the profits when
they're there to take. The volatility is great for trading.
Never believed the 20.00 a share stuff. Doesn't mean it
might not happen in the future.
But, for now, I expect it is down until we know the
full details of the financing and the exploration begins
again. End of Jan. maybe? Feb? It will come back, though. |
