The market's newfound volatility and declines are giving investors one thing that should not be overlooked. And that is, the market is forcing many new and promising IPO stocks into corrections and base building patterns.
If you follow Investor's Business Daily (IBD), the seesaw reaction in its market outlook this year was a indicator to an aging bull run. Caution has been rewarded. But even in markets like these, new companies emerge, and one should not lose focus on what looks promising.
Recently, IBD hosted an hour-long webinar on IPO investing. This video can be found on its website. An abbreviated version of it was posted a year ago, and we've posted it here:
Yesterday, we posted a chart from TradingView on a stock that we highlighted on Seeking Alpha last month, Rapid 7. The stock has been in a two-month IPO base, which we interpret to be a double-bottom. The buy point is $25.48. Monday's trade took RPD to the brink of this price on heavy volume. As of this writing, the stock has backed off amid the broad market selloff. We intend to buy this stock at this buy point.
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