Simple daytrading... the old buy on the rumour sell on the news. I waited until I actually saw an interest in buying on the name change (about 4 days before the Monday) and loaded up on the preceding Thursday, blew it all out the Friday morning at the opening bid. I've traded many, many, many stocks like this, and this is just how they all behave.
Was there really a reason to justify a double in price just because they changed their name and symbol? No. If it had always traded at 2 to 3 even with the great earnings it has, it would trade at 2 to 3 again with the name change. I just got in on the momentum. I actually took a chance in selling on the Friday gap up, because it could have run all day Friday... but it didn't, so I didn't reenter. I've seen many longs get hurt like this, sorry you're still holding. If your not a daytrader, the next time you see a move in a small stock like this, don't get emotional about the company and just sell the stock. Wait a day or so to see if it really is moving on fundamentals... if it is reenter, you might lose just a point to the upside, not a whole 50% to the downside since you didn't pull the trigger.
Sorry about the length of this, don't usually type this much. Good luck in your trades.
Regards,
Jason |
