Watching a stock run from under $1 to over $30 is an amazing feeling... if you own it. I have been watching Jones Soda stock since before I even started trading. I couldnt believe that a little company like this was even public and back then it was trading at about 40 cents. I knew penny stocks were risky and I stayed clear of it.
With the AMAZING run Hansens had last year because of its monster energy drink investors have been chomping at the bit to find the next great soda story. Thats exactly what Jones has. They recently signed a major distribution deal, started selling cans for the first time, switched to ALL real sugars (went green?), might be expanding into fountain drinks, just signed a deal with the SeaHawks to be the official beverage etc. Its a great story of the American dream too considering some kids started their own soda company printing their pictures on the bottles.
Now the company is worth about $400 million and is sporting a PE near 100. JSDA ran $20 or 200% in the first 4 months of the year. When it topped out at $32.60 investors absolutely destroyed it. After coming back down to $15 and bouncing off the 200 SMA I think its time for me to give it a try. What the hell right, its never too late to try.
Back on March 7 I bought into Petro China at $112.05. The oil sector was booming and the DOW had just come out of one of the worst days in history. We lost 250 points in one day over a China "Scare". PTR got hit hard and I saw this as an opportunity.
This stock had been on a straight line up since it came public. What were the chances of it reversing? How much lower could it go than this? It had just broken through the 200 day moving average on significant volume because of the China thing. Usually I would see this as a negative sign, but on a stock that had been going straight up like this, It just looked cheap!
Quickly we went up and bounced off the 200 (#1) but the support held on the way back down (#2). When it busted through the 200 about a week later(#3), I knew I was in the right place. All we needed was a catalyst to send this stock higher.
On May 5th the Chinese government announced that they "found" a ONE BILLION TON oil field off the coast (#5). Hey!? Where did that come from?? The stock shot up $15 to $129.80.
I was looking for about a 10% gain and there it was. I sold off on May 30th at $127.85 because I wanted to book the profits. Yesterday PTR closed at $142.65 a cool $12 up from where I sold it only a month ago. This morning PTR opened at $150 on some news about it selling its shares on the Shanghai exchange.
Looking back I could have easily made 20% on that trade instead of 10%. Why did I sell? They had just made an incredible "discovery", The stock just exploded past the 200 and 50 day simple moving averages and the MACD just converged positive. Sometimes its better to just be patient and re-analyze the stock before pulling the trigger on your plan.
My buy just triggered in MAG @ $5.10. I have had to buy order in ever since I wrote the article about the energy conservation trend. This stock has been on my radar ever since I owned some 2 years ago. These guys are in a perfect position to benefit from the energy conservation trend. They produce power converters that help distribute energy more efficiently. Just yesterday I read an article where people from Google were quoted talking about how so much of the energy in PC's and servers is wasted. I think we are going to start hearing about a lot of products that waste energy and MAG is in the perfect place to benefit from fixing this problem. The chart just looks okk. The stock is riding the 200 day simple moving average. My hope is that it will pop off of it. I am putting a stop in at $4.50 just in case, but I dont think it will get this low.
Woke up to an analyst upgrade of RACK. It closed last night at 12.55 and opened at 13.07. The analyst Initiated coverage with a "Buy" stating that we have seen a bottom in its gross margins and that the company is in "Turnaround Mode". It better be after falling 65% in 5 months!
I have tried trading the opening bell before and I always suck at it. There are people who's strategy is to trade the market open every morning. They make their trades, and they are done by 7:30am. Thats pretty smart if you have the cash(and balls) to do it!
I knew the stock would dip after opening so high but I always worry that I will miss the boat. I bought in at 13 about 5 minutes before it dipped to exactly where I expected it too. DUH! The market was rallying! What if What if!? Oh well, it popped back to 13 and is hanging out there now. I still believe RACK will fill its gap up to the 16.50 mark. The downside is minimal, I think I will hang around a little longer.