Monday, March 25, 2013

Datapulse : A Review of the trading idea

I had done a post on August 12, 2012 to outline a trading idea on Datapulse.

The trading idea was this.
"Datapulse is currently trading at 19 cents a share.
They are not likely to post a loss for the 2H of 2012 (From their 9 month report).
I expect Datapulse to declare a dividend of 1.8 cents for the year.
Once the results is announced, or leading up to the announcement, the share price will appreciate to around 22.5 cents.
You can buy in at 19 cents and get out around 22.5 cents to generate a return of 18% for a three month holding period."
To cut a long story short, the stock appreciated to 22.5 cents from 19 cents.
Assuming you had followed the trading idea, you would have made around 18%, not for three months, but for  around one month.

The stock is currently priced at around 20.5 cent.
The old trading idea still holds valid.

You can look to nibble at this stock at prices below 19 cents (I am pretty sure that it will hit those levels sometime before August).

Once it crosses 22.5 cents, look to get rid of your holding.

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