GAXI oil play been putting out new over last few months about gas well aquisitions. Been watching for a while This stock does not seem to quit Seems to use 50day ema as a support I know quite a gain in short period, but I think could be a good play to try and catch with stop set below 50day EMA. would wait for next pullback before buying but over next few months could be very rewarding and with minimal risk with use of stop orders set below 50 day EMA I don't own this, but figured would point it out.
Recent price hikes are nice but I am having problems with this. I just don't see those prices holding well.
Prices starting going up with the recent rise in oil price and the explosion over in Southern Europe. Looks this started a feeding frenzy.
I suspect some investors are going to get burnt on this. Could be wrong.
GAXI has no cash flow, has increasing losses, extremely high debt and are basically kept afloat by oil price increases, not increased production. They have no producing wells, none which are profitable.
These new acquisitions, primarily mineral rights previously pumped dry. There is not much there, not enough to be very profitable.
Over one dollar a share rise with that type of financial status, no, I just don't see prices holding; this is a feeding frenzy.
I could be wrong, probably am, but there just isn't enough there for me, personally, to feel comfortable about buying in, even at a price one dollar lower.
nice post Pure Girl I have just noticed this one last week I usually don't even consider stocks that have taken off with out me. I did not get in depth fundamentally, but I liked the way it seemed to follow a technical pattern based on the moving avgs. I figured that if this trend continued that one could play this one out with the proper use of stop orders for a nice profit. Just a theory I have. I made a friendly bet with a guy at work for bragging rights that this stock would see over five by March. That was when it was about 2.6. Will see what happens. I plan to just watch this one and study what happens. The volatility of this stock is why I would highly recommend using a stop order. I know it seems ovbious, but I would hate for someone new out there to take an unnecessary loss nice post Pure Girl good luck to you Posts: 491 | From: laurel,md,usa | Registered: Feb 2000
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I think you have a very good trading philosophy. In my opinion a good trading philosophy is one of most valuable characteristics that a trader can have. I read your advice about consistancy and the importance of research on the microcap board. I agree with you completly, especially when dealing with some of the stocks listed on that borad under $.10 research is everything. Many tools such as stop orders I found a while ago were not an option for me most of the time when dealing with microcaps. I believe it is safe to say Being smart and conservative(not greedy) leads to consistancy. Consistany leads to success. I have been studying GAXI because I have reciently been trying to study technical analysis a bit more. I found all kinds of interesting information off of investopedia.com. Some stuff such as MACD and bollinger bands I don't feel I have a great understanding of, but I will continue to try and learn more about them. I will definetly be watching for your picks LOL good night to you Derek
It follows this trend It becomes over accumlated after strength index reaches certain point. Then falls to the 50day EMA point before rebounding usually higer than the previous run. Appears will most likely fall to around 2.9 before rebounding if the trend continues. But you never know, brings to mind the old saying past performance does not guarantee future results.
Posts: 491 | From: laurel,md,usa | Registered: Feb 2000
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I would expect a rebound for stocks with good financial strength, such as LQMT and STG stock.
GAXI has zero strength.
Glassman pointed out Market Makers will drive prices down to snap up shares, knowing prices will rise again. LQMT and STG are following your pattern, quite well, Derek. This affirms what you write, adequately. You are right on target.
GAXI, though, probably will be a rebound at some point. However, GAXI does not have the financial strength to support prices above 2.50 per share or so, and that is really pushing it.
Look at the history of IVAN to confirm this type of bandwagon inflation and sudden price drop. Do not buy IVAN. It is just a good study stock. Compare the news which came out, by date, to the changes in prices.
IVAN, a lot, I mean a lot of investors made very poor decisions to buy in on worthless news; they don't have a clue.
Give close attention to news about IVAN being included in the S&P index. That news costs investors millions of dollars in losses because of poor decision making.