DOVP.PK: Delisted but playable?

[Leaira]

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.

[Jimbo]

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

[gambler2075]

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

[dwest718]

This drop is insane 

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.

[gambler2075]

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

[gambler2075]

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

[dwest718]

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.

[dwest718]

As of now, a pretty good candlestick today.  A bit more volume and a bit more of a recovery would be nice though too

[dwest718]

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.

[dwest718]

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 

[dwest718]

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.

[dwest718]

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 

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.

[David Randolph]

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.

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.

[Terliso]

Very risky play indeed, I won't ever bet my money in this kind of set-up... never!!!

[dwest718]

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.