Technically Speaking
The stock, is so far, holding the low print going back to 2014, as noted on the chart. The 100 month moving average is not far below, right above 40. That moving average has been a pretty good level to buy against, note the green arrows.
Fundamentals
Here is a summary of what the company does.
What to do?
The R/R seems to favor the long side from these levels. If looking to get long, buying here with a stop somewhere under the 40 area, seems reasonable. As always, my checklist below.
Should I buy or buy?
* Is this a technical trade or part of my long term holdings. Establishing a time frame is very important.
* Is it trading at an important technical level that is obvious to all market participants?
* Is the R/R in your favor?
* What is the likelihood this company will either go bankrupt or it's products or services become obsolete?
*
* How much debt do they have?
* If heavily indebted, how much is coming due in the next 3-5 years? Can they cover their debt payments based on reasonable analysis?
* Will their product or service become obsolete? This really is too hard to say, too many things looked obvious in hindsight, think Blackberry. However, I think it is constructive to think about, especially if you are planning to hold a stock for the long term.
Risk
* For individual securities, risk no more than 3% as a starting position. You can always add later.
* Write down a price level that you will consider liquidating all or part of the position.
* What is a reasonable price target?
Execution
* Write down the answers to the questions above and if you can answer yes to all of them, take the trade.
OVER THE LONG TERM, THE WAY TO WIN IS TO HOLD ONTO YOUR WINNERS, AND CUT YOUR LOSERS. IT IS AS SIMPLE AND AS HARD AS THAT.
The stock, is so far, holding the low print going back to 2014, as noted on the chart. The 100 month moving average is not far below, right above 40. That moving average has been a pretty good level to buy against, note the green arrows.
Fundamentals
Here is a summary of what the company does.
What to do?
The R/R seems to favor the long side from these levels. If looking to get long, buying here with a stop somewhere under the 40 area, seems reasonable. As always, my checklist below.
Should I buy or buy?
* Is this a technical trade or part of my long term holdings. Establishing a time frame is very important.
* Is it trading at an important technical level that is obvious to all market participants?
* Is the R/R in your favor?
* What is the likelihood this company will either go bankrupt or it's products or services become obsolete?
*
* How much debt do they have?
* If heavily indebted, how much is coming due in the next 3-5 years? Can they cover their debt payments based on reasonable analysis?
* Will their product or service become obsolete? This really is too hard to say, too many things looked obvious in hindsight, think Blackberry. However, I think it is constructive to think about, especially if you are planning to hold a stock for the long term.
Risk
* For individual securities, risk no more than 3% as a starting position. You can always add later.
* Write down a price level that you will consider liquidating all or part of the position.
* What is a reasonable price target?
Execution
* Write down the answers to the questions above and if you can answer yes to all of them, take the trade.
OVER THE LONG TERM, THE WAY TO WIN IS TO HOLD ONTO YOUR WINNERS, AND CUT YOUR LOSERS. IT IS AS SIMPLE AND AS HARD AS THAT.
