Question in the region of short permanent status Circuit City stock buy?
I am a buy and hold investor individually. My dutiful friend, who is childlike and can afford toplay the open market beside some of his money a moment ago purchased 400 shares of circuit city stock. I intuitively do not approaching the company or its long residence outlook. He however have be doing some research and feel the stock will travel up from its current low during the holiday buying season and plans to supply sometime nov-jan until that time it comes put money on down. Has anyone else hear of or done this? What is the best time to put up for sale this stock which is unambiguously not a long occupancy composer? What communication should he look for when determining to go? The company is 93% owned by institutional investors which is angelic for his situation.
Answers:
I deliberate your friend is making a serious mistake.
For starters, the premise is flawed. A rapid quick look at a long residence chart shows that this is not a seasonal stock; it have never shown specific strength within the Christmas run-up. Why should this year be any different?
Next, the timing is clearly not right to buy this stock. The stock have be falling steadily all year and is right in a minute at its 52 week low. Tell your friend, 'bottom fishing is an expensive hobby!' If he buys this stock presently he will receive burned! In certainty, it looks resembling a great SHORT interviewee!
And as you pointed out, the long possession outlook for Circuit City is not so honest at the moment. The cutback seem to be slowing down and near is serious doubt around the strength of the retail souk contained by standard. Furthermore, the certainty that nearby is 93% institutional holding of Circuit City is NOT GOOD FOR YOUR FRIEND'S POSITION! Those institutions are apparently dumping their shares right in a minute by the see of the stock only just, and as they dump in that is NO WAY retail investors are going to occupy the selling. This stock is head to $5 a share since Christmas, and I hope you can collaborate some sense into your friend until that time he looses any more of his money.
NOOOOO
Better to step next to Best Buy, Cosco, even sears
Circuit City is worst surrounded by their class
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Answers:
I deliberate your friend is making a serious mistake.
For starters, the premise is flawed. A rapid quick look at a long residence chart shows that this is not a seasonal stock; it have never shown specific strength within the Christmas run-up. Why should this year be any different?
Next, the timing is clearly not right to buy this stock. The stock have be falling steadily all year and is right in a minute at its 52 week low. Tell your friend, 'bottom fishing is an expensive hobby!' If he buys this stock presently he will receive burned! In certainty, it looks resembling a great SHORT interviewee!
And as you pointed out, the long possession outlook for Circuit City is not so honest at the moment. The cutback seem to be slowing down and near is serious doubt around the strength of the retail souk contained by standard. Furthermore, the certainty that nearby is 93% institutional holding of Circuit City is NOT GOOD FOR YOUR FRIEND'S POSITION! Those institutions are apparently dumping their shares right in a minute by the see of the stock only just, and as they dump in that is NO WAY retail investors are going to occupy the selling. This stock is head to $5 a share since Christmas, and I hope you can collaborate some sense into your friend until that time he looses any more of his money.
NOOOOO
Better to step next to Best Buy, Cosco, even sears
Circuit City is worst surrounded by their class