When comparing contract winners as to their potential runup, you look at the value of the contract vs the enterprise value of the company. WPCS is a low float, low value company ($5.3 mil) with a 3.5 mil contract. Juxtapose RADA is a higher valued company ($24.7 mil) with a 1.5 mil contract over 24 mos. you can see the difference of the potential for a push to higher prices of the stock. I opted to play the higher one instead of the lower one and got dismal results. What I needed was a better catalyst to play when picking a stock to play. I found this out later after I had already took the trade. I failed to do my research and played on momentum instead and got burned in this case. In the past in a strong bull market it would have played out to my advantage but in a bear market dynamics have changed.
What research do you use to find out about a stock breaking high or any stock in general
But the other side of the coin is that WPCS just did a nasty financing deal after-hours and that's why they're valued so lowly...WPCS was definitely the bigger winner today, but it's like a 50-1 horse that's on its last legs...and those legs just got taken out after-hours...so high reward but also high risk too
Great points, and something to put away in your trading toolbox.
WPCS ouch for any longs bag holding. WOW
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