20090725 Salvatore Deli of Malaysia Finance Blog likes MPHB for its 'meat value for potential vultures'. The price has surged last Friday. Looking at the chart how would one play it from a trading point of view? Well, if one were to commit a certain amount in this trade, you could chase the price and buy 1/2 position on break of the highs, then enter the 2nd 1/2 on retracement to the 8 ma on the 60 min charts. Stop loss? 1.40 may be good. Just an idea.(remember this is only for hypothetical purposes only)
20090726 Oh, I just want to add that this type of trade in a stock is 'from a tip'..... If everyone is in a trade it might go for a while, but the insiders have already got on the train 5 stations before you do..... Let's see how this pans out. As Salvatore says, the fundamentals are compelling for a corporate raider to come in and take a strategic stake in the company. If so, a better strategy is to keep the stock on the radar screen, in case there is a sharp market correction to enter. This type of 'value investing' play is superior to the kicks one gets from taking a gamble on a stock.
0 Comments:
Post a Comment
<< Home