We are buying LKQX – LKQ Corporation
One good company just got hit brutally and that thing just hit the support and is ready to bounced back. I know some people don’t like charts.
For them, we are looking at a company which had a terrific quarter that beat expectations, and have been growing steadily for the last 4 years. Earnings have just as steadily improved from a loss of $(1.00) in 2002 to a profit of $.40/share in 2003, dipping to $.20/share in 2004, then increasing to $.60/share in 2005, $.80/share in 2006 and $.90/share in the trailing twelve months.
The short interest in the stock is a tad 8 million. That is nearly 7 days to cover. That’s big enough to make you money on some good news. Look to buy around that $29 and see it bounce back. We take profits at % and 10%.
The performance of last two recommendations have asked me to take a little extra care about our history of taking profits at 5% and taking most out of the table at 10% profit.
Though, both our last two reco’s TGIC and M hit the 5% profit marks easily, and then TGIC went on to hit that 10%-15% profit mark we were culprits for being PIGS. We were greedy and we betrayed our strategy of taking it off the table at 10%. We did not take profits, but are counting on the reversal of trend.
It’s like we betrayed our best friend. So, from now on, unless there is a wonderfull news after the recommendation, we are going take half off the table at 5% and the other half at 10%. If we like a stock for the long term and not as a trade we’ll make a special mention of that.
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