I like situations like JRCC. The setup appeared on no news, but I could see buy flow coming in. Then you get a major development, one favoring your position and you get instant gratification.
But should you sell? I always do, but not the whole thing. The event completely throws the stock price out of balance. Their slate was wiped clean of a looming going concern. I don’t even know if they had a going concern statement in their financial statements, but they were teetering on the brink, no doubt. So now what’s the company worth? I couldn’t tell you, nor could I care less. I know fundamental guys, debt gurus, hedgers, and directional gamblers all have to come to market a duke it out to determine value. And that means we’re going to see vertical development, both ways.
Once I’ve cushioned the position with nice booked gains, I can sit back and see who prevails in the fight. I can cheer for my side, but I swear no allegiance. I’ll just as soon cut if the sellers prove a more formidable force. For now things are looking good.If you enjoy the content at iBankCoin, please follow us on Twitter