To tell the truth I tried to buy it today, but my price turned out to be the Low of the day at 85.
Now I won't touch it unless I could get 76, unless things fall together in such a fashion that I would take a partial position somewhere.
As with many of my stocks, I hit on it during an idle conversation; this time with a bond trader "who heard from a guy at another house that such and such at that house" and on and on. Typical rumor stuff.
The only saving grace in all of this is that I sort of "know my source" because these guys are in the business. I've been buying stock this way for years; usually it works out. It's not as if I pick them from my gardener or anything, although I once had a nice positional trade in a stock called Servomation once as a result of the ChemLawn guy. Chemlawn is owned by Servomation and he was pumped up; it was sort of like listening to a Home Depot guy telling you about his company's stock. Made a lot of sense at the time. But usually I just rely on friends who are in the trade (business) in one form or another, much like discussing issues here on SS.
The INAP discussion was based on an oddball situation which enchanted me, nothing to do with fundamentals or anything. Just a crap shoot a few people were looking at. They are in from lower levels though, the 60 dollar level or thereabouts. The stock appears so thin that it could be anywhere at any given point during the day, so any entry I may make is to be carefully controlled. I'm told the spread today was a much as 2 bucks from time to time.
No rush to get chewed up by that sort of thing.
I have to be invested in stock for the longer term, though. So when I have extra cash I start listening and then go in based on what I can find out once I get a story that interests me. Had I bought INAP at 85 I would have stopped myself out probably on a break of 70. I don't really care what a company does, I just care if the stock pattern looks sensible. |
