Big Drops and Quick Pops
The past month has witnessed several major price movements in our Equity Trades Portfolio, which is not entirely surprising since this portfolio contains those stocks that we believe are due for a quick and severe change in value. To make it easier for you to follow, we have divided them up into two categories; short/sell recommendations, and long/buy recommendations.
3D Systems Corp (NYSE: DDD) – We hope you followed our advice last month and bought puts or sold short this stock, as it dropped almost 20% the day after it announced disappointing earnings two weeks ago. The stock price has since recovered somewhat above $70, but sits well below short sell limit price of $80 so at this point it is a ‘hold’ until falling below our position closing price of $55.
Amazon.com (Nasdaq: AMZN) – This was our other featured short sell recommendation last month, and it also got blistered after announcing earnings three weeks ago. It now sits almost 10% below or short sell limit price of $390 so it, too, is now a ‘hold’ until falling below our position closing price of $320.
Facebook (Nasdaq: FB) – Facebook keeps flirting with disaster, but then rallies back up to new highs each time so it is currently well above our short sell limit price of $55. In fact, it now sits slightly above our stop loss limit price of $67 so we suggest holding off on entering into new positions until it breaks down below that price.
Netflix (NSDQ: NFLX) – Similar to Facebook, Netflix teeters on the verge of collapse but then recovers smartly. It also is currently priced above our stop loss limit price of $425 so we recommend waiting until it breaks down below that price before purchasing puts and/or selling it short.
EMC Corp (NYSE: EMC) – EMC is currently above our buy limit price of $24, so for now it is a ‘hold’ until it reaches our short term target price of $28.
Ricoh Company (OTC: RICOY) – Ricoh is just below our buy limit price of $60 so it remains a ‘buy’ until crossing over that threshold. Income investors please note: RICOY currently pays a dividend yield of more than 5% and has over $1 billion in cash on its balance sheet, so that dividend should be safe for the foreseeable future.
Riverbed Technology (NSDQ: RVBD) – Riverbed is currently priced above our buy limit price of $18 so it is currently a ‘hold’ until it reaches our short term target price target of $24.