DHB

[David Randolph]

I don't have time to analyze much because we're just so close to the opening bell, I believe a trained eye looks at this chart and automatically knows it is a buy, what do you think:



I could explain why DHB must be bought at this stage, but I don't have time. I'll probably do it in the updates after the close, I hope the price action validates my technical eye.

Everyday I will analyze DHB after the market close until I sell the stock. I always tell I'm going to sell before I actually take action. You just have to follow the answers to this post.

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[rocket8]

stocks down in general because of oil?

[oicpecnoc]

David,

I have followed this stock since the high teens.  For reasons I will not go into, management is not trusted by many retail investors.  Pereaps those investors are gone and you have a new group coming in.  My question to you is if in fact this matters to you, or is the chart, the new gov't order, and the momo enough for you.  In other words, if you knew how corrupt former investors perceive management to be, would you still have pulled the trigger?

They massively dumperd shares at their peak, sending the stock into a tailspin.

[calguy]

I got burned on this stock a few months back. Although the chart looks nice, I would have to agree there is a lot of bad blood following it. I have to wonder if 9 was a key resistance area the stock failed to hold, or possibly it just fell due to pressure every stock was under today with a -160 DOW. It's difficult to judge what any stock is did when the when the market was under such selling pressure.
I'll wait on this one and see how it shakes. I too have bad memories about DHB.
Good Luck to those who are playing, hope I see the light and join you.

[eliteG]

let me tell you what I think is difficult to figure out:  fundamentals...specifically how fundamentals affect price.  The study of price(patterns) and volume I believe has the fundamentals built in.  Test it historically. 

DHB "might" have upset investors but I think you need to guide your stock plays by what makes you money.  By what makes the $value go up.  Plain and simple.  And you set your stops if the market decides you are wrong.

[David Randolph]

Sorry, but no time to update today. Keeping the stock.

[Michael]

David,

I agree with you on this one.

Great Industry, good margins, low valuation.

It is correct that insiders sold massively when the stock was around 20. It is funny for me that when Insiders sell at the top everybody complaints but when they buy at the bottom everybody is cheering. The last insider activity was a buy from the new President.

[Tirebldr]

According to vectorvest.com >> DHB has a current Value of $16.66 per share. Therefore, it is undervalued compared to its Price of $8.79 per share.

And here's an interesting 3 part interview here from yesterday. Any thoughts?

http://messages.yahoo.com/bbs?action=m&board=1601910385&tid=dhb&mid=207703&sid=1601910385

http://messages.yahoo.com/bbs?action=m&board=1601910385&tid=dhb&mid=207704&sid=1601910385

http://messages.yahoo.com/bbs?action=m&board=1601910385&tid=dhb&mid=207705&sid=1601910385

[Melf Elf]

let me tell you what I think is difficult to figure out:  fundamentals...specifically how fundamentals affect price.  The study of price(patterns) and volume I believe has the fundamentals built in.  Test it historically. 

DHB "might" have upset investors but I think you need to guide your stock plays by what makes you money.  By what makes the $value go up.  Plain and simple.  And you set your stops if the market decides you are wrong.

Good post.  Particularly the last sentence.  Applause.

[calguy]

I'm wondering if my bad experience the last time I held this stock is keeping me from entering it now and possibly missing out on a profitable trade. Will keep watching it here and examining my bias against the stock. The psycological challenges of trading are the hardest part for me so far. I could be dealing with a part of it here.

[rocket8]

anyone else buy DHB the last few days?
i did.
seems like a good company to me.

[Michael]

Hi Rocket,

Count me in! I love the fundamentals and if David say's OK for the chart it can't go wrong 

• They have grown revenue constantly  since 2001

• One of their main competitors seems to be going out of business due to faulty vests

• They can't meet demand due to a shortage of Kevlar which seems to be resolved in Q4

• They are traded at a very attractive PE level

I am also still long in GIGM. Considering to add to my position. I can't wait for Q1, which will be out in July!

Seems we like the same kind of stocks 

[David Randolph]

The trend is bullish on DHB. The stock didn't break out as a short term trader would like to, but considering the general market weakness it wasn't so bad after all. DHB is above it's 50 day moving average and the slope of that average is positive. We also have a short term ascending line that will probably support price - the stock did rebound from that line on Friday, to close near the open level.

I'm keeping DHB.

[rocket8]

look dave, when u pick a stock it is only allowed to go UP.

[David Randolph]

I have to face it. DHB made a false breakout and the downside potential is considerable. We have a gap to close in the $7.62-$7.78 range. When a stock tries to reverse trend but it is unable to, this only empowers the prevailing trend, which in the case of DHB is bearish.

I understand and respect the theories posted by other fellow members but I have to keep loyal to my strategy, and that simple strategy says «sell DHB, take your loss, move on to another stock. Cut the losses, let the profits run».

Anyone can see I'm on a string of losses here ... it's a natural thing to happen, after a 120% plus portfolio profit in 2 months. The only way for a man to stop losing is to start gaining, and that can only be done in the market. I've decreased my exposure but I'm ready to start increasing it again, from a low of 66% cash probably to full invested in a few days.