I hope a lot of you own TLPE. The stock has broken away, and looks to be trading up on short covering. When you see stocks run like this in such a short period of time, and then keep tearing up the chart, it’s usually because some one is forced to buy.
TLPE is no doubt going to be a multi year grower, and is probably still quite undervalued as measured against the $55 million in sales and $4 million in EBITDA profits the company feels in can deliver in ’06.
However, now might be a good time to exercise some discipline. If you are a shareholder from when I first introduced the company at $.23, you might consider locking in a partial or full profit. I don’t believe you should be out of the stock- this is far from over- if you sell you should be doing so with the idea of piling back in on a dip.
With this morning’s gap to the upside, the stock has eclipsed a high set many months ago. This is a major technical positive. The chart tells me a little common sense might be in order here. It can’t keep going up in a straight line like this forever.
At this point, I like $.37 (.382 retracement) as the first level to accumulate on a pullback, followed by $.335 (.618 retracement) if the gods smile on you and decide to give you another shot at this one.
Comments and questions are welcome.
I bought 18,000 shares 12/16/05 at $0.2489. After seeing it hit $0.41 earlier this week, I bought add’l 15,000 shares when it fell back down to $0.36. After reading a postive news releases and forecasts for the stock in 2006, I am look forward to the next up surge, then must decide weather to cash in part or let it all ride for a little bit longer.
Editor: You were on the right track to not buy at the top if you wanted to add to your position. $.36 is probably going to end up being a reasonably good entry point, but there could be a little more backing and filling. The management team here is doing all the right things on the corporate finance side to prevent any excess supplies from hurting the market for the foreseeable future.
Bought in at .27, waited a bit just to see where it might go. Now of course comes the hard decision on should I sell and then hope for a dip to get back in or ride it for a while yet. Considering the forcasts for TLPE I’d hate to miss it.
Editor: a sound strategy as well as trying to trade the extremes. However, when shorts are forced to cover, I do like to take a little money off the table. At this point I would not sell any.- Probably more of a buy now.