Trade #89 – Falling Knife

In Trades by JC1 Comment

I picked up some shares of $GBSN yesterday @ $0.16. I bought a few more today. My new average is around $0.15. I originally bought this yesterday after looking at an extended chart. This stock is a former runner that a lot of people know about.

Its a popular stock that’s beat down.

$GBSN has been in free fall since 8-13-2015. On that day, the company announced earnings. The stock has gone from $2.80, down to $0.11 since the Q2 earnings were posted. For Q2, the company missed its estimates. Even though sales are up, increased operating expenses and a derivative ate away at their profits. Link

I’d like to see this stock get back up to $0.20 or higher soon. When we get to that point, I’ll feel more comfortable holding onto it. Right now I’m looking for the bounce.

Not ruling out anything more as these former runners have a way of repeating history. The float on this stock is 2.2M.

The lighter fluid is there, we’re just waiting on a match.

I found the following video on StockTwits today.

I took the trade yesterday for the same reason I took the $CYTX trade.

This looks like the bottom!

The IT FACTOR with this stock for me is that its a former runner. Look back at the chart. You’ll find the same thing I did. $GBSN goes up quick on good news.

This stock pick is 100% speculative and risky ass shit. I’m currently in 4 other trades right now. If this one goes tits up, no worries. I firmly believe that diversification is key to staying in the game.

I’m going to allow myself a risky trade every now and then.

As I added more shares of this stock today, I couldn’t stop thinking that you’re not suppose to add to losers. You’re suppose to add to your winners. Weighing the risk versus reward for this trade. I couldn’t help but take it. Now we’ll see if catching a falling knife actually works.

I did read that sales for this company are up. They have more units in place and they’re selling more product then ever before. They had a derivative as I understand that sucked 24Mil in profits from the Q2 balance sheet.

It looks to me that this company is currently in business just so it can pay off its debt. $GBSN is a real company, with real revenue. They produce medical equipment and supplies in use by hospitals all over the country.

Based on that, I believe this company is worth more than $0.11/share and will continue to hold this one for a while. If the stock holds steady for the rest of this week, I’ll consider adding a little more.


Comments

  1. Author
    JC

    I ended up trading this stock a few times. I won and lost several times trading this over the past 2 weeks.

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