LLL's Volatility
On most days LLL can be quite volatile, but yesterday I checked its price in the morning and it was over $42 and it closes at $36.95. Its day range was $36.6 to $42.90. If only I had the time and fortitude to day trade this on margin! Efficient markets or hyperactive traders?
posted by Des @ 12/01/2007 08:50:00 AM
3 Comments:
yeah, it's a volatile stock. It's the classic pattern of buy on rumour, sell on news (of earnings). I've seen this kind action with some other hyper-growth stocks like RIM and GOOG in their early days. I think the speculators and momentum traders are out, and this sets up nicely for a sustained rally. If this volatility is too much for the club, I can get us out at the next opportunity, but I still foresee a $100 price in 2009-10. keep the faith!
Well, it was another volatile day for LLL (up 6%) on a down market day. This stock seems to have a mind of it's own. One thing we could do is put a stop loss on it (so I can sleep better at nights :). There seems to be some support at $34, but with such a short history and high volatility maybe $30 might be more reasonable. Thoughts?
Nah, volatility is fine as long as you expect it and use it to your advantage. Nothing material has changed (except doubtful seaweed!) so we shouldn't sweat the small day to day variations. If as you say this is a hyper-growth stock then I agree that 2009 is a minimum to see this through. Hey I was reading in the ROB magazine that Cramer was pumping this thing. Of note Cramer recently was promoting HAL and thinks its a take out candidate.
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