picking stocks example

[mute9003]

i want to use the DPW holdings stock as an example to get an idea on how to pick a stock and what to look for
i have been watching this stock for over a year but besides how chart moves i don't know what else i can gather about it from other indicators and other available resources

can you please post what you would do if you considered this stock and how you got to that conclusion
like what would you be looking at and what information would you be looking up about it to decide if you want to buy it and when you want to buy it...
i want to compare if what i see is similar to what others see and whether is correct or not

i guess a proper example of technical analysis and basic analysis using this specific stock is what im asking

 

[longandshort]

Start with macro — is the backdrop good or bad for equities, then sector/industries (which ones are poised to do well given the macro regime?), then companies within the industry (which ones have the ability to outperform by gaining market share or disrupting competitors?).

Ultimately, that leads you with stocks you’d rank as better or worse. From there you can evaluate companies based upon the driver of their price performance (did they have a good quarter? Are they expected to have a good quarter?) and bet with or against them.

important note here is that you want to strip out the effect of the market from your company — an easy way to do that is to compare your company vs an industry etf. If it outperforms then figure out if it will continue its trend or if it will reverse. Hint— nothing comes down purely due to price unless you’ve spotted a bubble (exponential price move). So it’s important to look at the calendar and see what events or activities will add new info to the market in order to understand the companies context better.

 

[Peter8519]

1. Screen % daily gain for 30 days. Do a frequency plot by percent gain by industry.

2. Bank - Regional industry seems OK. I then look at all the charts in this industry. Those that flow with the 50 SMA is my target e.g. LOB. It's strong enough the defy the trashing for the past few days.

3. This is just an example and not a recommendation. All methods will fail one way or another. Jump in with a safety harness.

 

[easymon1]

like what would you be looking at and what information would you be looking up about it to decide if you want to buy it and when you want to buy it...

Call and ask Stevo. He'll take a look with you while you're on the line and is happy to answer questions.
His process is what you will see while he does it. Free.

...or just Buy at 65 cents. Use money that you can afford to lose.

 

[Nobert]

i have been watching this stock for over a year but besides how chart moves i don't know what else i can gather about it from other indicators and other available resources

Hey mute,

and, what did you learned by watching only the chart for a year ?

It reminds me of this story :
Timestamped

Once you finished watching the story :

inovation and expansion, that's what missing. Was watching over 200 stocks for a year myself.

200 times more data.

Better conclusions - inevitable.


So what do you have to do is, watch/follow more stuff, to get better in that which you ask for.
And add reading ballance sheets on the top of that.

 

[easymon1]

...Then there's that gap at 1.47, so you could think about playing it like this youtube linked below demonstrates, which is his way to trade the resumption of a trend after a return to the Gap after a dead cat bounce. However, in this case turn it Upside Down, trade the Long side, that would be the Opposite Direction from the youtube example, but same principle from 1.47ish.

https://elitetrader.com/et/threads/...st-right-here-baby.335635/page-8#post-4987957

 

[SunTrader]

Guess I am the only one (so far) who noticed this is in the Technical Analysis section?

Anyway a dollar and a half stock would not be my first choice, if I traded stocks, to look at.

And this one keeps popping up every couple of weeks/months and then selling off. Looking at news on company they are trying every hot button topic to generate buzz. Cloud, Alzheimer's research, in-home vehicle electrical charging. Hodgepodge of attention grabbing nonsense if you ask me. Run, don't walk away.

Oh and Technicals are way out of whack what with the spike moves but RSI sucks, MA's (I don't use but so many do) are useless as well with parabolic move after move. Forget OB/OS oscillators lol. Complete waste of time. Wish I could say different.

 

[deaddog]

No one has mentioned that since the start of 2019 there have been 2 reverse stock splits. A 20 for 1 and a 40 for one.

If you owned 1000 shares in Jan 2019 you would now have 1.25 shares.

As for TA it has make a new swing low, is trading below the 200ma and has broken any trend line you can draw. At the low of the 3 month range, the six month range is down around a buck.

Market cap is low so if the company was worth anything It would be snapped up. It is in danger of losing it's NYSE listing and has till 2022 to get the shareholder equity over 6 million.

Might be a good trade because of the way it bounces. There are only 12 million shares outstanding so on the days it trades 30 million it is traders moving the price.