I invested in PLUG as a result of a trend line showing the price was continuing to move higher over time. It's price since I repurchased shares was $.72 a share, a current loss of $.14 a share. I am holding believing this to be a paper loss only and in spite of those who are successful who indicate one should limit ones loss with a stop loss transaction. Why didn't I sell when a stop loss price was reached? Most indicate a 10% is acceptable. Normally I would have sold my shares agreeing with those who make money regularly. What stopped me? Why didn't I sell. Penny stocks are volatile. It is their nature. Considering the recent sale of new stock by PLUG for $.54 a share to insiders or employees and others. made me realize $.54 was my sale price. I would live with this loss thinking the stock may move in a price range of about .10-20 as a result of both NASDAQ notice of PLUG not meeting their requirement of $1.00 a share and accumulation by investors who believe the price at these levels is one for accumulation. Determining accumulation which builds a base is not always easy. I had to find a way to justify my belief this is what is happening . To make this decision, I decided to look at the trades for PLUG for Friday November 1st. What I found was the last 100 trades
83 trades were less than 1000 shares price range $.57-.58
16 trades were between 1000 and 10000 shares $.58-.59
1 was for 10000 shares $.58
This type of trading to me is accumulation buying. Accumulation buying indicates investors are bulls for PLUG. If I were to see many trades of 50,000 or more, it would be considered a move by sharks as they look to pump and dump.
Accumulation investors know there is profit in the future whether it is with the stocks price movement higher or with a reverse split followed by increased interest and higher prices. We will see if I am right in this analysis of PLUG as a stock of current accumulation.
Disclosure: I am long PLUG.
Additional disclosure: I currently own 3800 shares and holding having accumulated all I can afford at this time.