3SOF

ABRX is down $.97 to 4.31 on after hours trading. Here's a Reuters news item I got from Yahoo.

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh02494_2005-05-27_22-35-56_wen2468_newsml

Not good...

Da Wheezle

... about the close on the after hours for ABRX. Some sources say $5.15, other's say $4.31.

I've read the news about the firing of 200 employees but I'm not a news reader and definitely not a news follower.

What I got left in this situation is my strategic approach to stocks - I won't let a profit turn into a loss and my price target for the short term on ABRX is $6.75 (the closing of a gap).

Another thing I think it's worth mentioning: never average down your price. When you buy a stock it is because you think it will go up. If it doesn't, if in fact the price goes down, probably you were wrong in your analysis. Are you going to persist being wrong and buy more or start being right by stop being wrong?

David,
Could you tell us where you stand with this (ABRX)?

I believe you're asking at what price did I bought the stock, right? It was @ $4.10 as you can see in the homepage.

200 employees is almost half of the workforce, so the news is very relevant for the company. But I think if things were set to go really bad they wouldn't take the difficult task of firing so many people.

I'm with aussietrader when he says that every negative news item will shake stocks but the biggest one that will probably come out in the future is a bullish one, and that is that the company has started production again.

I don't know about you, but I'm not an investor, I'm a speculator. As a speculator I have 11000 stocks to consider and I definitely don't fall in love for one or a few of them. That said, I will respect my rule of never letting a profit turn into a loss and I will sell the stock if $4.10 or lower is reached.

At Friday's close I had a paper profit of 28%. Perhaps I'll have to let go all of it, but I don't care, the market will always be there, there's always great opportunities and I'm confident that I'll profit month after month.

So you keep following 3 Stocks on Fire and please don't worry too much about one single trade ...  just one more thing, are you diversified? I guess not, and that's a mistake - in order to make money you can't lose a lot of money and that's the first rule a speculator must consider.

Have a nice holiday tommyt, even if things go bad this time that has led you to the right place, 3 Stocks on Fire 

Thanks David, great site, and a lot of good information.  However, your price didn't concern me, it was more your conviction. I totally understand what is paramount in your approach, and I think it is good and you have the results to be satisfied with it.
It is as hard for me, as well as anyone to turn a profit into a loss, despite diversification. But, as you know, I am new to this site and I was interested in how strongly you felt or stood behind your picks.
I believe you told me, I just don't know if I want to bail on this one so quickly. It seems so way oversold, and as far as I can see institutional have only bought more.
I respect your speculator insights though, and have gained much from your site.

What caught my eye in the news article I posted the link for yesterday was this part:


>>Able said it can give no assurance as to when it will be able to resume manufacturing operations, or if does, whether it will be able to hire, train and retain the manufacturing and other operating personnel necessary to operate effectively.<<


It was the "or if it does" part that concerned me, the air of "finality" to it. I'm new to this, and must confess a dangerous optimism at times, when I see huge gains in stocks. I have about 15K in two stocks acquired thru a former employer, and have been wanting to try to do better with it. I haven't done anything with it yet, I've just been reading everything I can get my hands on, watching, studying, and setting up "mock trades" to test myself. I've seen so many "approaches" to this, and have yet to find what works for, and is comfortable to me. Mr. Randolph's attitude to this "news" at first concerned me, but after considering his method, made more sense. I'm sure I'm not the only newbie out there that wants to jump on that one BIG gainer. That's why I've hung back and just observed up to this point. Things like the discipline of having no more than 6.6% of my money in any one position and sticking to a game plan are just prime examples of what I need to embrace to get anywhere with this. When I'm ready, I'll jump into the mix.

I'd like to compliment those involved with this site. The discourse is honest, polite, and to me, helpfull. I've experienced the free-for-all that called the Yahoo boards, and have got more usefull information here in a few days, than I ever got from the other site in MONTHS. I'm not just talking about "hot picks", I'm talking about philosophy and method. I beg everyone's patience with a neophyte, and wish all success. You all have something here that I haven't found anywhere else.  Keep up the great work.

Thanks!
Da Wheeze

Thanks for your nice feedback on our work ! 

You got right about the philosophy behind this project, this is a website made by traders for traders. 
We are not just dumping some buy/sell posts, we'll always try to disclose the strategy and methodology behind the trades we made, and we hope to continue receiving valuable inputs from the members of our community.

Welcome aboard !

Good luck with your future potential trades Wheezledick. Just a small piece of advice get the 'One big gainer' out your head,you won't last long chasing that.
Playing the market is all about a strategy and plan for entry, exit, money management, position size, stop parameters etc. Once you find an approach that you are comfortable with (and there are plenty of them)  make sure you write down a set of trade rules that outline what your approach is all about, keep it handy and then apply those rules in all your trades thus making everything as mechanical as possible and leaving the emotions somewhere else.
Mike

sold in pre at $4.90 don't like the risk reward anymore.

I don't like the rumors that are out there. Locking in a 12% profit, there's nothing I can do for this stock. I have 11000 stocks to consider, don't want to be in one that has so much risk. If a bullish news comes out I can't imagine the short covering rally, but while it doesn't ... it's risky, some people are talking about bankruptcy, and we can't control people, no matter how irrational they are.

Hi David,
Isn't it too early to get out of ABRX?
When they are cleaning up the mess voluntarily shouldn't they get the credit?
How can a profitable company be bankrupt?
Any input?

This will have a huge gap to eventually fill (between 4 and 24), but we'll await the chartmasters for the right point to revisit this one.

ABRX might be back in action today:-)

You've read my thoughts bebu 

Just noticed Bebu.  Hoping one of our astute technical folks could give us some further insight into where this is at.  Maybe too early to know for sure.