I bought HOV (Hovnanian Enterprise) at the open this morning on the advice of a stock newsletter Bob gets. I keep the newsletter nameless since this will be bad pub. I ended up getting $2.35 a share and immediately set a stop loss at 10% below my purchase price. I got stopped out. It dropped immediately after I bought it and went to $2.11. A loss of $261.36 in about 15 minutes.
It’s probably a good time to buy HOV at 2.07 now.
This company got to $70 back in ’05 and was even as high as $30 in ’07. Since 2005, this company has been on a straight path down. This is one chart that show a company going under or one that has a nice rebound story.
Related articles:
April 16th, 2009 at 8:09 am
Just bought my 1000 shares of HOV back at 2.10. This could be a bad learning lesson but I feel like I need to make some money back on this trade. I could just be making it worse. Let’s see how my gut does on this one.