NIHK- wow- trading up far beyond my expectations. Awesome. This is some bird. It’s really flying.
You might be thinking I made a bad call. I suggested a partial or full sell on the stock April 2nd when it traded up to $.16. Today it hit $.24 at its absolute peak, and is now hanging in there around the $.19 level.
Being wrong about the top is kind of a high class problem- like having to pay too much in taxes. If that’s the biggest problem I ever have to deal with in the microcap world, then life will be beautiful from here forward. I’ll live with it. Sorry.
If you own this stock from when I first featured it in the Fall at around $.04 it is still probably prudent to make a partial sale.
Right now, NIHK is going up because it is going up. The kind of investor who buys a stock because it is going up is the same kind of investor who will sell a stock because it is going down. A lot of the hot money at $.24 is probably going to sell at $.18. If you liked it at $.24, why would you sell it at $.18?
Here’s today’s chart:
As you can see, my suggestion to lighten up on April 2nd at $.16 was a little premature. However, this is the chart of an overbought stock that is due to correct.
I have been getting a few emails from members on the upside of the equation- I have seen charts suggesting the stock is going to $.29 on this move.
Perhaps it will. In any case, it’s a whole new day for NIHK- the bar has been set considerably higher than in past years, and when it does correct we will be starting out from a much better level.
Today, I believe NIHK is more of a sell than a buy- simply on a technical basis. If the stock falls back, my view could change in short order. When it’s time to load up again, it will be at a much higher level than on past pull backs.
Comments and questions are welcome.
Do you think this stock will fall back below .10, or is the low price going to inch up for a while?
Editor: I’m not sure where it will pull back to. $.10 is entirely possible. I will be able to comment on that in the future. For now, I believe more downside is likely.
Do you think this stocks price will get below .10 again? Also, is it outside the realm of possibility that it will ever hit a dollar? It seems to making small strides toward a stronger market position. Thanks!
Editor: Anything is possible- however, at this point in the company’s development, I believe $.10 is more likely than $1. However, if they land the right contracts, anything is possible.
you always seem so negative on Nihk compared to some of the other companies you are paid to follow. Why do you not give them any credit for what they have achieved so far just this year. Compared to some of the other companies you are paid to follow they have achieved alot more and it should start to show in the bottom line, yet when asked if this company could reach a dollar you are saying sell it at 20 cents. Is your service all about trading or investing? just curious.
Thanks
Editor: That’s simply not true. You need to read all the content, not just one phrase. I have covered their achievements at length, and placed a long term target on the stock of $.25. I really like the company- I also stressed buying this stock in the $.04 to $.08 range for months. That’s why you buy them- to make money. If you can’t recognize there can be a difference between liking a company and liking a stock, you have a long way to go towards maximizing profits. In the case of NIHK, at this point in time I simply believe there is a better chance you will be able to accumulate the stock cheaper down the road vs having to pay more. This is simple common sense. You just don’t buy stocks that have doubled in a few days. You buy them when they are cheap, the you sell them. If you want to hedge your bets, you do a partial sale. I could be wrong. Short or long term- that is up to you. I cover both sides of that story.
I do read all of the content and that is my point , Nihk has alot going for it and yet you still say sell it and try to pick it up lower, do you realize how many people probably act on your advice, you seem to take more pride in the fact when you predict the prices that the stock is going to trade at then what the company has to offer in the long term. I guess I am more interested in the dollars instead of the pennies. In other words I have never been a good trader, but I have made good money by holding the right companies long term and I think nihk is going to be one of those companies.
Editor: There are a lot of different ways and philosophies for making money in the stock market- Microcaps are just like any other stock- the decimal is simply moved over a little. There is nothing wrong with a simple multi year buy and hold strategy, and it can be a good way to make money. However, it is not the only way, and in my view not the best. I believe in identifying a number of good ideas you like, and accumulating positions for the long term. You have to accumulate them right to make a great return. I believe in buying when stocks are cheap and quiet, and selling when they are trading great and everyone wants them. Your comment about dollar vs pennies is ridiculous. If you bought 1 million shares of NIHK when it was cheap, no one wanted it, and trading in the $.07 range where I was saying to accumulate, it would have been a $70k investment. If you sold 1/2 at $.20, you would have $100k in cash and still own 1/2 the position- and now you have the money. This is hardly pennies. If you had bought the stock at $7, and sold it in a couple of months at $20, you would have thought you died and went to heaven- CNBC would have been all over it at $20. I like reasonable valuations, and I believe at a $20 million market cap, with trailing revs of perhaps $1.5 million, the stock was ahead of itself. That is my view. If you don’t agree, don’t sell it. There’s no reason the company can’t grow into that market cap and grow from there. The reason investors read the OTC Journal is to get that point of view. This stock is going to $.14- mark my words, where it will probably be a pretty good buy technically. We’ll see. The BLOG is your forum to get others to see your point of view, and you have made it.
Thanks for your comments, very good points.
Editor: You are quite welcome.
I thought, according to an email sent by Mr. Saathoff on April 05, that NIHK was releasing its last years results no later than yesterday? Did they file and the news just won’t come out for a few days, or did they just not file?
Editor: I looked yesterday, and it hadn’t been filed yet. They are now up against the absolute deadline, so I imagine we will see it today or tomorrow.