rjm77me's Blog : Buying 3 stocks for swing trade

DY - no comments

NVTL foward earnings already baked into stock price. Max price projection at $8.25/sh. Given your commentary on the 'rear view windowlooking forward,' I would have thought that you would have passed on this one.

I don't understand the basis for the underlying momentum for VMW. Compared to its peers within the same market segment, VMW is overvalued by about 2X.

CRN looks like the best of the lot. Just announced contract award for $205M over four years - all incremental growth on top of proven sustained growth track record. CRN needs to focus on buying down debt and cost efficiencies.

I 100% agree with your views. I do not trust those projections. They are a flimsy guide lines. Broker up grades or down grades have a short term influence on stock and every thing is buried in 5 to 10 days. NVTL is a low risk swing trade - buy when it pulls back under 7.85 and sell when it goes above 8.05 - that is 2.5% return. I pay $1 per 100 shares to trade and give $2 for cost and take home $18 per 100 shares with this trade. Trading cost has to be low to do these kind of trades. Can you do it once a week with out extending your self - like few hundred shares. It is great for lunch or dinner money. Sure rug can be pulled from any stock at any time.

Talking of valuation - check CREE or IOC or AMZN. I have learned that true valuation is what the buyer is willing to pay. Example SXE showed on my scan as potential trade on Thusday 3 :15 PM. All I saw buyer were paying the ask price. It was tradin at 27.98 and my limit order did not fill. It opened slightly higher and then lost steam with market down turn. I did buy it cheaper at 27.78 and stll lost money on Friday on this one. Yhoo web site has $36 target. Will I stay long enough to get $36? It did trade at 36 in Dec 2008. There is short term resistance at $29 - next resistance is at 31.80
To me these are short term trades. I did buy two option contracts on NVTL with 6 months to be right oe wrong. My projection is $11 for NVTL in three months - again I do not have a forward looking mirror. I started trading in NRG just two days ago - to me it was undervalued and next day Goldman add to convition buy list. THAT PUTS A FLOOR UNDER THE STOCK PRICE FOR NEXT 10 DAYS. I as a trader can make few bucks knowing the situation and having personal convition.