Small float leads to wild moves

A reader has emailed me asking my opinion on EFUT. It is too late to get in to it now. It has been on my scans since last 4 days. One of the reason for such wild move, where the stock has gone from 8 to 46 in matter of few days is because of small float.

When looking at 5 ideas to buy, I always look at float. Low float is always preferable. Trading low float is not every ones cup of tea. It requires tremendous patience to sit tight on such moves as they can make wild intra day moves. You need to have very good risk management strategy.

Low float along with explosive earnings is always a extremely good set up provided you get in at the right time.

Here are couple of stocks I have positions in or watching basd on action so far today.

ALTH,Allos Therapeutics Inc.
CYBX,Cyberonics Inc
DDS,Dillard's Inc
DKS,Dick's Sporting Goods
EFUT,E-Future Info Tech Inc Ord
GOOG,Google
GRRF,China Grentech Corp Limited ADS
ICE,Intercontinental Exchange Inc
NTY,Nbty Inc
PIR,Pier 1 Imports Inc
SRSL,Srs Labs Inc
WCI,Wci Communities

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2 comments:

Unknown said...: My play on RKT Rock Ten is working today. Up about 10% on 5X volume so far. I have to say, the strength of this market surprises me somewhat. I guess we're climbing that wall of worry but I'm still cautious.; Nov 14, 2006, 3:07:00 PM
Pradeep Bonde said...: I have booked partial profits on lot of high flyers bought few weeks ago. November has been exceedingly good so far. So no complains. Now we are getting in to more interesting territory.; Nov 14, 2006, 3:31:00 PM

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