Glad I got rid of TurboChef (OVEN) a while ago!
You know, a wise broker once said that you should never assume a stock has bottomed out just because YOU think it dropped enough (or something like that,lol)! The truth is, the market decides how far down a stock will sink. Always remember, no matter how far down a stock has fallen, it can always go lower.
This reminds me of a stock story, that I experienced (well its story status now, lol). Take one of my trades for example.
I remember, not too long ago, our good 'ol "buddy" Cramer (Jim) recommended TurboChef Technologies (TCF on the AMEX at the time) as a great buy! This was when the stock was
TurboChef Technologies (TCF 
Okay, lets take a look at what we have here! The first (1) point of the chart cooresponds to the first shares that I bought at the end of May, around high 13/low 14 dollar range! That is also around the same time that Cramer had made a mention of the stock. At first investors and traders were slow to buy this up. But the mention (speculation) of new, upcoming contracts for OVEN to supply SBUX (Starbucks) with their commercial ovens gave the stock a huge surge in price which can be seen in the second (2) point. This is where I also sold some of my position. At the same time, I bought some more shares at point (2). The next piece of news was proably the most damaging one. It was as I like to call it, the nail in the coffin, lol. Out of nowhere, TurboChef announces that they were approved and going to go back to the NASDAQ market (yes they were in the NASDAQ before when the company ticker was TRBO and then they got kicked out and placed in the AMEX with the ticker TCF). Big Mistake #1! Personally, I do not believe that TurboChef was ready to be placed on the NASDAQ where it would face a higher volume requirements and stiffer competition from more attractive stock plays. Regardless, the same day that the change from AMEX to NASDAQ began, the stock shot up to $20 (point 3)! My mistake was that I should've sold every last share at that point. Unfortunaty I didn't! So if I didn't sell at the 3rd point, where did I sell? I sold the rest of my position at the 4th and 5th points for a decent profit. My second mistake was that I wanted to buy more shares ( yeah I started getting a little greedy, lol). So right after the fifth point (5), I bought some thinking it was going to bounce off the 50day MA! I was wrong! I was lucky enough to sell my entire 2nd position around the sixth point (6) for a small loss. I am glad that I gave up on OVEN as the company had a huge short position (about half the shares) and it was also on the naked short list. To top it all off, they never announced any real good contracts )except for the Compass deal) and they are being sued for patent infringment! Way to go OVEN, lol.
Todays action is the topping on the cake. TurboChef reported lackluster earnings today which have sent the stock tumbling down to $12, Afterhours. So long TurboChef! Till we meet again! If you're lucky! And thats my stock story! The End.
posted by Nick M. @ 4:56 PM
3 Comments:
lol, heheh not using MY computer! I don't you hacking into my $hit
lol, jk
lol, hey Dave
I know, I know, OVEN was a sad story, still it wasn't all that bad. I made a little in the begining and then got greedy by trying to repeat my first success with the stock. Its all good, lesson learned. I have other horror stories that I will share in the time to come...and I mean some really crappy plays, that cost me some dough, lol. The thing to remember is, that the stock market is never perfect and I am not trying to portray that. As I get more comfortable with the blog, I will talk more about failed trades and why they failed so that we can both learn from the mistake (my mistake).
My concern with the market is that interest rates will continue to rise. Its not over yet. This will be a later than usual fall/winter rally. I still believe that the NASDAQ will rally the most with tech and healthcare stocks. The S&P has also shown some great strength as well.
The best way to play the market is by playing the "sit n wait" game. I know for a fact that most seasoned traders (I'm talking about the best ones) don't go too crazy with the buying of various different stocks. What they do is they pour a whole lot of money into a few stocks that they carefully pick (like one or two at a time). And they wait for the perfect moment, and I mean they wait! If it starts to look foul, they dont even hesitate to stop looking at that one stock and move to the next. i know it sounds elementary, but its not! Heres an example. Lets say I have $8,000 to invest. The 1st scenario has me dispersing the $8,000 among a few stocks that I picked because they looked like hot stocks (say 4-6 stocks). I bought 200 here, 100 shares there, 300 there, etc. Sure you widen the chances of having successful trades, but you are also opening up yourself to more risk of a bad trade. It sometimes is wiser to search harder and find that one stock thats hot and you have no doubt about and put the whole $8,000 in that stock. I can almost guarantee you it will be the better play!
aNYWAY, enuff of that! i do like HOM, but I say wait a little. BDSI, yes more volume would be better, lets see how it acts in the next few days. Definatly keep QDEL, ACR and SLXA on radar, Dave!
Im looking for more recs as we speak! I should have some results in an hour or two! I'll talk to you again later! oh by the way, I found some other hot stocks!
Ok, later Dave!
-Nick
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