this article (http://www.reuters.com/article/marketsNews/idUKN2428548920070924?rpc=44) came out today and made my stock of CPSL skyrocket 50% today. After hours it has gone up 2 more percent, but I'm worried it will drop tomorrow. Any opinions?
2007-09-24 15:06:51 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
i'd suggest to sell it at the 'second top'. because at this point, novice investors start flocking in and the seasoned traders start to cash in.
2007-09-24 17:18:52 · answer #1 · answered by BigBen 5 · 0⤊ 0⤋
Taking a profit is never a sin. Such a big up-tick will be hard to hold on to tomorrow. The whole action took place in the first 2-3 hours of the market today, after which the stock ran fairly flat. Volume is big, however.
In these times of discount brokerage fees, it doesn't cost much to grab the profit and then get back in later. Just watch out for the 3 day settlement time, where your wonderful profit is in limbo and you can't use it to get back in quickly.
2007-09-25 01:30:39 · answer #2 · answered by ZORCH 6 · 0⤊ 0⤋
So.... you're looking for investment advice from strangers. You don't know their qualifications or motives. You don't know the company well.
China PrcsnStl.......
CPSL has a current Value of $2.55 per share. Therefore, it is overvalued compared to its Price of $7.92 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. At some point in time, a stock's Price and Value always will converge.
CPSL has a forecasted Earnings Growth Rate of -4.00%.
My suggestion....... Sell at least 50% of your position.
BTW: You need to know more about this company than me. I only spent 5 minutes. Not enough time to make a valid suggestion.
You're dealing with stock that are very volitale. Usually this is the areana for much more experianced investors. You were very lucky.
2007-09-24 23:16:38 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
Stocks go up and down all the time. If you are investing for the long haul, dont watch it so closely. It could drop then could go up and also split. Then you would be mad at yourself for selling. But if you are playing, go a head and sell. Remember there are fees for all this too.
2007-09-24 22:15:22 · answer #4 · answered by T I 6 · 0⤊ 0⤋