Nice call. DRL has made a new 52 week low everyday for the last 5 trading days. Closed today at 5.26. Down 2.5%.
DRL...multi-year lows again today. Closed at 5.00...down roughly 40% since this thread was started (less than 3 months ago). :eek:
We'll see who has the last laugh, you certainly had the first one. To the best of my understanding, the stock is making good money and is a viable business, and cannot stay this cheap for long. They're about to come out with their statement, then the uncertainty factor will no longer work for the advantage of the shorts.
This was a really funny thread. I placed my stockcharts back to the day this thread was started. I had no idea whether this stock went up or down and I just watched post after post as I moved my charts up to the day of each post. WOW, what denial of a downtrend. There was never any point within the downtrend that looked like it was over until June 1st and that only lasted 2 days. You guys need to look at longer term charts. This was a no-brainer. I wish I was a member of the board back then.
1. About half of the drop was because of the overall market. Do you have proof to apply such technical analysis when it totally contradicts fundamental analysis--rock bottom prices for a stock supposedly making good money with a viable business operation? E.g do you believe such a stock could even have gone to $1? 2. It seemed to me about everytime anyone showed he was a serious buyer the shorts just disappeared. From my perspective, the reason for the down move was not because of charts, rather because there were too many sissies.
I use a 50 day regression line with a 2% standard of deviation channel. It's amazing how well it works in determining uptrends or downtrends. This stock stayed in the channel the entire drop with the exception of two days. You have to have some rules when you trade stocks especially with stocks in this price range where a .50 cent move is almost 10%. Why hold onto any stock in a downtrend? Make the stock prove it is worthy of your money!!! I think too many people hold onto losing stocks because they are worried if they get out of the stock it will immediately go right back up. It takes time to reverse a trend. You always have plenty of time to make money in a stock, especially if you plan on being a long term holder. Look at the stock when you purchased it. It was in a decline and BELOW ITS 200 MA. It was below its 200ma since march of 2005. At no point in time did the stock ever threaten to go above its 200 ma. There is still NO indication this stock can move above its 200ma. Why hold onto it?
Dude, I'd never laugh at your misfortune. (Well... if you were a dick, I would- but that doesn't apply here.) I've yet to meet a trader capable of 'batting 1000'- we all take painful hits sometimes. Here's one of mine. (Second worst day ever.): http://www.elitetrader.com/vb/showthread.php?s=&threadid=61514&perpage=6&pagenumber=304
8 months later, 80% down in price: See DRL now--I can't be wrong forever! http://www.elitetrader.com/vb/showthread.php?threadid=89700