AOB ==> The CHRISMUKKAH Winner

[mannyp]

Wait, then buy...

I noticed this pattern quite some time ago that I usually buy several days after MM. Usually there is a fallback and I can pick the stock up cheaper than MM and many times several dollars less than MM. For example, I own BBD which I picked up at $35.62. My sell target is less than MM's purchase price. I have been following this pattern and has worked out for me pretty well.

Also, I think AOB was a risky pick. I liked IAAC which was up 12% in one day.

[lemonjello]

NB,

if you bought it down at 9.1 would you still hold for MM's target? Or maybe just use a floating stop and hope it turns into AXR?

MM,
What he is saying is that $9.10 is an excellent place to buy the stock. Make 30% instead of 15%. That would be HUGE, ya know.

[lemonjello]

Congratulations. You've approximated the S&P on a non-risk adjusted basis.

if I take my total position at the beginning of 2006 and compare it to what I have now, I am up over 15%..yes.

[alice4321us]

Support is at 10

MM,
What he is saying is that $9.10 is an excellent place to buy the stock. Make 30% instead of 15%. That would be HUGE, ya know.

Looking at the chart it seems first major support is at 10 and then 50 MA which is 9.11 ??

[mrmarket]

Congratulations. You've approximated the S&P on a non-risk adjusted basis.

Actually you're wrong. The P/E of my portfolio is MUCH lower than that of the S&P 500...so my holdings are less risky.

[New-born baby]

NB,

if you bought it down at 9.1 would you still hold for MM's target? Or maybe just use a floating stop and hope it turns into AXR?

Actually I bought it much lower than $9.10 and I cut it loose at $10.04. Too soon, eh?

I would not buy AOB right now. I would look for an entry at $9.10 or $9.00, but if $9 fails that means she moves back into the $7- range where I got it the first time. But I think she bounces at $9.10 and moves up again. She's just bearish right now. Look at the chart; wouldn't take too much to make a head and shoulders top.

As to your question, I would consider a $9.10 entry, put a close stop under it at $8.97, and 1st target the left shoulder's top; 2nd target the head; and third target would be to sell half and let her run.

[mrmarket]

entry schmentry...if the earnings are there, you can't keep a good stock down.

[blessed]

Totally agree with MM ....AOB just on a pause

[Tatnic]

Actually you're wrong. The P/E of my portfolio is MUCH lower than that of the S&P 500...so my holdings are less risky.

Don't believe everything you read on the internet.... P/E ratio is a lousy measure of risk, probably one of the worst.

[DSteckler]

Bruce is correct. P/E has very little to do with the measurement of risk.

[mrmarket]

Bruce is correct. P/E has very little to do with the measurement of risk.

It depends how you define "risk". If a company's PE is low, that means that, all things being equal, its stock price is less susceptible to negative changes in its earnings stream.

[DSteckler]

The "Risk" in investments typically is measured by the Sharpe ratio, Ernie. Not P/E ratio.

[skiracer]

I like the play to the upside over the short term to intermediate term but I need to see some consolidation of recent gains first. If the pullback takes place as I think it will the entry at 9.50 level could provide some very intense gains with a decent r/r. Here's my take on the daily and weekly charts. The weekly has an interesting formation within a formation which you don't see to often.

[mrmarket]

The "Risk" in investments typically is measured by the Sharpe ratio, Ernie. Not P/E ratio.

Are you talking systematic risk or non-systematic risk? I would advocate the Jensen or Trainer method if it were the latter.

[IIC]

P/E is meaningless...Just ask WON