So here is my story of stupidity, I actually bought Intrepid at 50.55 last night. Being a smart and wise investor I went and meant to place a stop loss of 49 to cover my risk if Intrepid were to tank today. Good idea, right. So when you are making these types of moves you must pay attention to what you actually click because making a limit order instead of a stop limit order can cause sudden palpitations of the heart.
Yes, I did and as quickly as I bought them they were sold. Fortunately for me I only lost around $40 instead of what I would have lost today as Intrepid sank in the afternoon.
So what happened, yesterday Intrepid was being sold on strength, even though the price was rising more shares were being sold. This is one sign of serious profit taking and in my opinion a sign of a speculative stock, since emotion and news tend to ignite buying.
Do I think there is potential with Intrepid? Absolutely. But here are some of the things I am looking at: one, Intrepid only counts for 1.5% of the world’s total Potash supply. Two, they primarily or almost completely sell domestically. That means all the price hikes of tremendous proportions aren’t having a direct impact yet here in North America. Not to think that it won’t soon.
Trying to figure a good buy point is going to be difficult, obviously if I said to buy at 50.55 many people would be pretty ticked off today. With only one day of charts to look at and not much background info, although what I posted earlier is obviously promising, I am hesitant to make a comment on what to do currently.
This should definitely be a strong long-term holding and if it follows what other Potash suppliers, albeit much larger, are doing will return nice profits.
By the way, CITI had positive guidance on most Potash supply companies.
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