3SOF

QuoteI am therefore going to hold RITA till next quarter is released. I am going to sell immediately if they do not deliver an earning surprise in that quarter.

I guess this is a good trading plan from Michael.

Quote from: valueseeker on August 18, 2005, 10:16:56 PM
I read somewhere the cost of the device is $50 while they are selling it at $1K. So it's all profit.

Thanks for the info valueseeker, where did you read it? It would be nice to read the complete text ... anyway, thanks 

Today RITA had some follow through from yesterday's jump at the open, which was pleasent. The ascending trendline I got on the chart is pretty valid so my trading plan could not be more simply, that's to hold the stock as long as it closes above that ascending trendline.

The expectation is for RITA to make new highs after this 50% Fibonacci correction.

I got the price info from the Yahoo MB:

http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1600934114&tid=rita&sid=1600934114&mid=7930

It sounds about right as their profit margin on other devices are 60%+ and this is brand new so 90% margin is understandable.

I really don't know what would be the selling point for RITA. They are supposed to be profitable every quarter starting from Q4/2005. I hope we should see $4 pretty soon with this approval. What do you have on your mind, Dave?

Hi

Am new to 3SOF (just joined last night in fact) and decided to make my first play today.  Saw your TA on RITA, and general comments here and elsewhere look bullish, so I put myself in at 3.66.  Now I know it is far too early to be questioning this decision, but with the subsequent downward movement this afternoon, do you think this looks like a retracement back to support?  How much longer do you expect to hold this if we don't see a bounce? (I know you're in at a higher level than me).

Anyway, excellent site, am really glad I found it.  So good to find a community of traders who are really interested in supporting each other and helping each other out with info and suggestions.  And very international too!  You've got a lot of people from far flung corners of the world!!

Cheers 

Hi ScottishTrader,

Welcome to 3SOF. I like your attitude to investing. I don't know anybody how have made a profit on all trades (that is unless they have only traded once!).

You will probably see a post or two from Ramsburg one of the two founders of this site. Ramsburg's (or Fred's) slogan is: plan your trade and trade your plan. I think that is very true. When you buy a share make sure you know why you buy it and when you will sell it.

On this site most people are trading on technical signals. As I am sure you know, David has a stop loss at the ascending trend line. In this case he hasn't said when he will sell but I guess it will be at the resistance around 6.

I am not a technical trader. I barely use TA to time my trade. In the case of Rita I am convinced they will surprise positively when they release Q3. They might go up or down in the meanwhile but unless there are fundamental changes in the company's performance I am not planning to sell.

From my experience (not only from investing) nobody knows the fundamentals of the comapny better than the management. If they like in the case of Rita are buying shares it is most likely because they also believe that the comapny is undervalued. But even insiders can be wrong that is why any insider signal has to be confirmed. I had hoped that the confirmation would come in Q2 and it partly did as they exceeded the revenue forecast but earnings was disappointing. I hope earnings will come through in Q3.

Thanks for you reply michael,

I agree, in fact (aside from what looked like some nice technicals) what convinced me to go for this one was the recent insider trading history and your fundamentals analysis.  I am still definitely a learner when it comes to TA, and David and other's posts put forward a strong case, particularly for appropriate buying signals, but I don't like to trade on companies whose share value is based on too much 'thin air'.  While a lot of money can be made, the floor can fall away from you very easily too.  RITA definitely appears to have a strong basis, and with Habib expected to start shipping next month, I am with you in looking forward to some kind of earnings revision.  Then we'll see where she can really go.

Thanks for your feedback and analysis 

I agree with Michael, insiders are truly believing RITA stock will trend higher in the near future. The company released an 8-K filing yesterday and I would like to highlight the following:

«In connection with Mr. DeYoung's promotion to the office described above, on August 17, 2005, the Company issued to Mr. DeYoung pursuant to the Company's 2005 Stock Incentive Plan an incentive stock option to purchase 60,000 shares of the Company's common stock, par value $0.001 per share, at a price of $3.34 per share, exercisable at the rate of 1/8 of the total number of shares after the first six months of August 17, 2005 and then with respect to 1/48 of the total per month, such that the option will become fully vested at the end of four years.»

«On August 17, 2005, the Board appointed Mario Martinez, age 51, to serve as Vice President of Operations and General Manager of the Company effective August 17, 2005. Prior to joining the Company, from January 2000 to August 2005, he was President and Chief Executive Officer of Tecnix, LLC, a technology advisory company. From October 1997 to January 2000, he served as Vice President Engineering and Technology Development at 2C Optics, a medical device company. From December 1995 to August 1997, he served as Vice President Engineering and Operations at Biofield Corp., a medical device company. From June 1992 to December 1995, Mr. Martinez served as Vice President Operations at EP Technologies, a division of Boston Scientific Corp. Prior to June 1992, Mr. Martinez held various positions at Cordis Corporation, a division of Johnson & Johnson, from March 1987 to June 1992. Mr. Martinez holds a B.S. degree from Florida International University.

In connection with Mr. Martinez' appointment to the office described above, on August 17, 2005, the Company issued to Mr. Martinez pursuant to the Company's 2005 Stock Incentive Plan an incentive stock option to purchase 100,000 shares of the Company's common stock, par value $0.001 per share, at a price of $3.34 per share, exercisable at the rate of 1/8 of the total number of shares after the first six months of August 17, 2005 and then with respect to 1/48 of the total per month, such that the options will become fully vested at the end of four years.»

The stock was below $3.34 just a week ago. Counting the company doesn't want to have
unmotivated managers leading the company, it sure believes the stock price will increase in the coming months/years.

And the company's beliefs are probably based on sound fundamental principles and expectations for the near future.

These thoughts go in tandem with Michael's fundamental analysis of RITA.

Anyway, yes, I'm more of a technical trader and I have a simple trading plan to follow:

1) Hold the stock as long as it closes above the ascending trendline which today will stand at $3.34 (interesting value  )
2) Sell with a profit at the descending long term resistance level, around $6.34 at this time, or about 75% above the current price.

QuoteAnyway, yes, I'm more of a technical trader and I have a simple trading plan to follow:

1) Hold the stock as long as it closes above the ascending trendline which today will stand at $3.34 (interesting value  Smiley)
2) Sell with a profit at the descending long term resistance level, around $6.34 at this time, or about 75% above the current price.

For tomorrow the ascending trendline will stand at $3.35, up one tick from today.

Had to pull out of RITA today for a loss (only been in it very short term).  Shame as it is one that I would like (and expect) to see a move on.  But there is just too much else going on today, I had to have my money where its making me money.  Pulled out of RITA at 3.51, into CPST at 3.55.

I have a feeling RITA will trace back to the ascending support that it is slowly approaching.  If things start looking ready for another break I will be right back in!!

Thanks for your comments, Michael and David. 

Thanks for your post ScottishTrader, I fully understand you, good luck with CPST 

I'll continue to hold RITA, since it is a health sector company, a defensive play.

I'll just keep the plan I had for RITA, hopefully the money coming out of more cyclical sectors finds a home in biotech and pharmaceutical companies and their suppliers.

For today the ascending trendline is standing at $3.37, rising a bit everyday.

No news and no technical developments on RITA. This is the only losing stock at this moment on the 3 Stocks on Fire Portfolio but I'll keep it as long as it closes above the ascending trendline (today at $3.38). Fundamentals suggest higher prices are coming for RITA, I guess we just need to have patience.

Quote from: David Randolph on August 26, 2005, 06:00:48 AM
No news and no technical developments on RITA. This is the only losing stock at this moment on the 3 Stocks on Fire Portfolio but I'll keep it as long as it closes above the ascending trendline (today at $3.38). Fundamentals suggest higher prices are coming for RITA, I guess we just need to have patience.

I disagree with the no TA developments RITA is showing very little (declining) volume in this consolidation phase after the rise on the approval. That's a good sign for me and gives me hope RITA will wake up soon

That's true nikao 

And on Friday we've had almost no volume on RITA, just 54,700 shares, but the stock rose a little more than 1% in the face of a declining market.

For Monday the ascending trendline will stand at $3.39, I'll continue to hold RITA.

Are we seeing a triangle here David?

And the fact that RITA couldn't close the gap is also bullish isn't it....

Quote from: nikao on August 28, 2005, 03:40:17 PM
Are we seeing a triangle here David?

And the fact that RITA couldn't close the gap is also bullish isn't it....

Yes nikao, we can talk about a triangle here. That gap conclusion is a bit forced, since volume is so low. When volume is very low one shouldn't take conclusions out of a stock's daily movements, RITA is probably just passing time.

The ascending trendline for tomorrow will stand at $3.41, I'll continue holding the stock for as long as it closes above that trendline.

RITA went down 1% and it was one of the best stocks on the 3 Stocks on Fire Portfolio today, so you can guess I got a sea of red to analyze this evening.

But, what you see is what you get, I have losing days like everybody else, of course, you can learn from my successes and mistakes. A wise man can learn from his mistakes, but the true genius learns from somebody else's mistakes.

RITA has no story today, time is running out for the stock to choose its path, and I will act accordingly. For tomorrow support stands at $3.41 and resistance at $3.53.