For those of you are talking about holding through a correction/consolidation of IDC, a word to the wise. I suggest you look a IDC's chart (e.g. click "100-Day Chart" below this message). You may have a good long-term investment plan and great confidence in this company but there is a very high probability that you will have to hold this stock through a steep retrenchment and, if you purchased very recently, you may have to wait a long time to break even. Parabolic moves takes a long time to work through and in this case could easily include returning the price to the high 20's or lower before the consolidation is completed. IDC's stock price has jumped far beyond the level and timeline of the most optimistic analysts. Talks on the threads of wild prices beyond this point are just that, wild.
Yesterday, you may have noticed that IDC was halted during trading hours because of an order imbalance. A very large block of stock was dumped on the specialist and was ultimately unloaded about 10 points down. What did you all make of that? My guess, and it can only be that until for the time being, is that insiders are scrambling to dump shares. They've never seen anything like this and must take advantage of this hype (QCOM-shadow) move. IDC has traded in the single digits for a very long time. Now is the insider's opportunity to cash out. Who can blame them? Initially, those late to the trade or those wanting to jump on a "real mover" may buy the dips and absorb these shares (as happened yesterday), but that crowd thins quickly if the supply of stock continues to weigh down price (this is called "distribution" and always seems to mean the small investor is left holding the bag).
QCOM has not yet corrected its monster move, but it will. It is likely to start even today. IDC can not stand up here alone. If you are a long-term holder, then best prepare yourself to have your capital tied up for some time. IMO, the better advice is always the most trite, "buy low, sell high" and, perhaps, more importantly, "don't ever let your losses run."
Good luck. |
