Does anyone have a good strategy for playing stocks that tank a lot in one day? Like DSCO, this one went down 53%, and DOVP down 42%. I never tried to trade any like this before, just wondering if anyone has had any luck?
Thanks,
Leaira
Edit of the ticker symbol only.
Leaira,
first congratulation for winning the contest last month :) :) :).
I'm sure you have heard the expression "Catching a falling knife". I don't think that anyone could give you a good strategy for that kind of play. If there is one we all would be gazillionaires. 9 out of 10 times is much more safer to buy a stock in uptrend (BUY HIGH, SELL HIGHER ) rather than trying to pick the bottom.
But of course there are times when you can make a good profit by playing that very dangerous game. Just make sure you buy with limit order near a clear support and use a really tight stops. If you don't get filled let it go. There always will be another one tanking down. If you get filled be ready to move your stop very quickly to protect you position (profit). That is very important because you don't know if that was the bottom.
My recent play was VPHM - bought near support at $9.75 and sold at $12.50. My initial stop was at $9.26, risking 5% only. The risk/reward turned out to be 5.6 which was excellent.
Now if I were to play any DSCO or DOVP I would choose DOVP. I see minor support on the weekly chart at $7.30 ( had to go on weekly to obtain 5 years data). So following the strategy above I would set a limit order at $7.35 with a stop at $6.98 ( BTW never set a stop at round number ). The initial target will be $9. Then the risk/reward will be 4.46.
Good luck
:)
Quote from: Jimbo on April 26, 2006, 12:24:47 AM
So following the strategy above I would set a limit order at $7.35 with a stop at $6.98 ( BTW never set a stop at round number ). The initial target will be $9. Then the risk/reward will be 4.46.
Good luck
:)
Well, I'm buying in at a little less than $7.35/share ;) but I believe this stock is currently way oversold. If they can avoid bk (remember, they only have to OFFER to rebuy the debentures... they don't HAVE to unless the holders force them to. If I was a debenture holder, I would buy every single share I could at this price... then, I would wait for the offer from dovp to repurchase the debentures, and I would say "well, let's work out a deal instead. We won't force you to rebuy them now" ) this stock should be a 10 bagger. Of course maybe that makes too much sense.
Even if they don't, then the pps reflects bk anyways... will be interesting to see tomorrow. I have never seen such total destruction from 18$ to 0.35$ in such a short time. It could go down to 20c/share... but I think today was capitulation.
Long 40k shares at 0.39.
g
This drop is insane :o :o
This will be on my radar and I will look for some type of bounce or small recovery to get in. Any stock that is at 1/60 its 52wk high is worth taking a look at. Let's see what happens.
all or nothing, baby.
bot 22.5k more at 0.31.
Long 62.5k at 0.363.
Either going to 0 or they will avoid repaying the debentures and stock goes to 3$.
g
My thinking is that this is so o/s that even a bk declaration will cause a bounce/short cover.
If they don't declare bk on sunday then monday will def be a bounce... and I don't see how they have to declare unless they offer to rebuy the debentures (which they must at this point) and the holders AGREE to force them to rebuy (which hasn't happened yet).
g
2500 @ 0.31 earlier today
Coulda pulled the trigger @ 0.36 to make 100 bucks but decided not to. We'll see if it was the right decision.
As of now, a pretty good candlestick today. A bit more volume and a bit more of a recovery would be nice though too :D
Very good day today for DOVP... would've liked to see a close at the highs of the day but the candle and price action is nice and the volume could be better but is alright. This should have been my entry point... it would've been around the same price (.31) but I just bought in a few days early. If we get a bit of bullish confirmation tomorrow and some more support around .29, mental stop at .23 and begin to figure out a safe exit point. If the move is more than a couple cents, .29 is also a pretty good support level...We'll see how it goes.
Another pretty good day. Same as yesterday that I would've liked to see a close at the higs of the day... showing resistance to closing in the range between .33 and .36. This creates a very tight trading range and with volume decreasing, it is not far outside the realm of possibility. Increasing RSI is nice and what looks like a bottoming out of MACD could symbolize some sort of bottom for DOVP. Some support at .29 now but mental stop around .22-.23 (below 52wk low). Depending on tomorrow's price movement we will have a better idea of what direction DOVP will move and how much. Hope to the up side ;D
Stayed in trading range today. Not a great day but definitely not a negative day either. Volume dropped to around average so a little worried about that. A bit more resistance added at .33... just taking each day as it comes. Will post chart later if I can.
Another day within the trading range... this time a bit lower and questionable. More support at 0.29... bad volume though and not a great candlestick... MACD looking ok... RSI looking not so great but this thing is still extremely oversold. A drop below 0.29 tomorrow could mean a retreat to 0.24 or worse. An up day on good volume could signal a good time to get in or buy more. Some would say 0.45 +/- 0.045 is fair value for this stock because it was the opening price on the highest volume day within recent weeks. Still keeping an eye on this one.
Happy trading ;D
Could someone please modify the topic thread to the one I'm using since this topic has nothing to do with a 50% drop or DSCO anymore? Thanks in advance.
QuoteCould someone please modify the topic thread to the one I'm using since this topic has nothing to do with a 50% drop or DSCO anymore? Thanks in advance.
I did that.
Good luck for that very risky bet. Mind that a stock can always go down another 99%, doesn't matter how low it is. Even if you buy it at $0.0001 it can still go down 99% after a reverse split. I've seen it happen a lot of times.
Very risky play indeed, I won't ever bet my money in this kind of set-up... never!!!
DOVP finally is getting more of that up movement I was looking for. Never hit 0.23 so I'm still holding.
Good MACD... Good MACD, RSI trends.
Out at 32c, a while back, in at 29c... I think I'm finally in the green... barely with today's move.
STill holding 70k shares ave 33...
g
Forgot to add... up 40% today.
g
good run yesterday ....Now, could it reach SMA 5O ?
(http://\\assurancetourix\culture.la-gb1$\mes%20images\sans%20titre.jpg)
::)
=IdFix=
Well... It's better to be lucky than lose money ... check out DOVP over the last two days. Getting very close to that 50dma... should I continue holding it?
Showing great strength. Bounced off .40 level back to the highs of the day. Trading there until just now with a slight selloff as I type. Sold half at .485 to make a few hundred bucks... hoping it still breaks the 50dma so we can see some action tomorrow. If it closes at the highs of the day and over the 50dma, barring bad news I expect DOVP to try to get to .70 tomorrow and then throw an inverted hammer in the mix. We'll see what happens. Good volume too :D
Needs to close above .45 today to not get beat down tomorrow under a resistance level. Anything between .46 and .49 will probably lead to an average up day tomorrow... probably a doji... anything above .49/.50 could mean another huge day tomorrow (like I said) to around .70.
Sorry ,had to move and merge.This is the Board for the pick.
"DOVP.PK" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Thank You....and good luck with all your trades....make some $$$ 8)
Still long 70k shares from 0.33... this deserves 1.50 easy, but first target for me is 1$. may pull back to 40 but showing great strength.
g
this is looking quite strong... seems like nobody wants to sell now, and somebody is picking up every and all shares at 45... methinks this runs another 20 cents in the nearterm...
g
This is holding 45 very well... should run tomorrow... someone is taking all comers on the bid at 45...
g
Good day today. Nice volume. Good price action to remain above the .45 support/resistance level. I think we might see a pattern similar to the one I drew tomorrow. I'll try to sell the rest of my shares as high as I can. Looking for anything above .70.
Well I was wrong on the chart the other day :-\ but we seem to be having a morning doji star pattern forming that could help us bust through the 50 dma and make up some more ground on that .70-.80 mark. I'll post a chart later today after close. Hopefully we close above the midway point of Thursday's candle and/or we get a break of the 50dma today.
Poor close because of gap between bid and ask but still an alright day... let's see where tomorrow takes us.
Yep, still holding all my shares from 0.33... this really deserves 1$+...
g
Two more trading days in 2006 for dovp.pk. Should be very interesting. Still holding it all. Possibly expecting some tax loss selling/fear over the next 2 days, but I believe dovp is worth far more than it is currently being valued at.
This may be my downfall, or, well, a windfall... but my prediction is that pps will linger/fall by 2 cents over the next 2 days... then no bk announcement on the 2nd and the stock starts on a run to 80cents or so... then news of a dilutional deal/bk avoidance and the stock moves eventually to 2-3$. My bro is in for 230k at 23-24 cents... but only for 25% of his portfolio...
We will see. It's only money.
g
Excellent. Looks like dovp will avoid BK (which the stock is already priced for) although there will be dilution (which I expected)... however, the company will have no debt. Jan 16th or 17th will be a very interesting day, although I forsee a runup up until that point.
I have 70k shares just under 30c, and my bro is in for 300,000 shares at 25cents. He was also the one that bought 180,000 shares of cpnlq.pk at 0.30 and sold most at 1$+.
http://biz.yahoo.com/prnews/070103/nyw076.html?.v=80
"It is also contemplated that, in connection with the restructuring, holders of DOV's outstanding common stock would receive warrants to purchase additional shares of common stock constituting approximately 20% of the outstanding equity of DOV after giving effect to the exchange offer. In general, the exercise price for the warrants would be set so as to effectively provide the holders of the preferred stock with investment value equal to the principal amount of the debentures not returned in cash in the exchange offer."
g
Note that the above quote is not set in stone... it is an "ad hoc" agreement with 67% of the bond holders, and I may not actually come true... although I am betting that it will. I think the reason why the stock has not absolutely exploded here is that traders are waiting to see if it actually comes true before buying. However, I believe that the moment the pr hits the wires, this stock will gap up significantly.
g
Sweet. Anybody else still in?
long 70k shares from 29-30c...
bro is now long 350,000 shares from 25 cents.
target 1$ after they say they avoid bk...
that is the only thing holding this back, imo
g
damn punks shook me out. sold 70k at 37 cents, +5k$.
g
I've still got around 3500 shares. Not quite sure what today's restructuring deal means for the stock price. I know it means that DOVP will not go bankrupt but other than that I am not sure. Can someone help me out? Below is the link to the article on Yahoo about the deal.
http://biz.yahoo.com/prnews/070125/nyth080.html?.v=81
Anyone in on DOVP? Anyone able to trade it today? I see trades going through but for some reason Scottrade is not letting me trade it today. :-\