We recommended to buy AVD several weeks ago near 7.50. It rallied to 9.50.
In the recent market sell off, it hovered in the mid-8’s and we asked that you accumulate below 8 whenever you get the chance. Well, it dropped almost back to 7.50 on Tuesday.
The stock’s average daily volume is 100k shares. Something is up today as volume is exploding, already at 750k shares in just the first hour.
This is what happens when a stock is “discovered”. My guess is that Goldman’s upgrade of Monsanto is awakening interest in this stock. Or someone could be accumulating it for an buy-out.
Our target remains the 10-11 area…
ADDENDUM: The stock has traded over 1.4m shares, or 14x average daily volume. The stock had been up as high as 8.96 and it has reversed to trade as low as 8.08. Obviously there is something going on, but it may simply be a large buyer has found a seller for accumulation. By day’s end the buyer could own stock in the 8.50 or midpoint of the days range.
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