I am new to stock investing and I was watching this stock for the past few months and seemed to go up and then down, but for the most part not go in any real direction. I thought I would play a short term bounce when I got in the roughly 3.50 area. Now it has pulled back with the market downturn and went back upwards yesterday with better market performance. I thought it was a good sign but Today it is down even with better market performance. Also, the CEO and director recently added shares...wouldn't that mean they know that positive news awaits?
What are your thoughts? Is a stock like this really unforseeable and just have to take a gamble? Im not sure whether to take the hit or to stick it out at this point because anything could happen...
Thank you for your question!
Yes, that stock is a gamble. It could pay off alot, or you could lose alot! My favorite saying in investing in risky stocks is to never invest more than you are willing to lose! So it does not have to all or nothing, if it interests you, make a small investment.
Typically corporate officers adding shares is a good sign. It could just be bonuses that they were promised, but most see it as a good indicator. If officers begin unloading shares, that of course would be a bad sign.
My financial research company actually has a strong sell rating on this stock. Among other things, the earnings growth is poor. However, its always possible things are improving and the stock bounces back up. Our research indicates that we expect stock price to continue to fall, or stay around where it is, for the short term future. For long term stock forecast, 3 years out, our analysis gets better.
To sum up: treat it like the wheel in vegas. Its a bet. Don't bet too much. If it goes right, you could earn a strong return. But its risky, so just do a small amount that is manageable for you if things don't go well, and look to other investment options for the rest.
I hope this helps, please do not hesitate to follow up with me if I can off anything additional.