first cheapest actively traded stock

The chart is courtesy of Scottrade. The symbol is GSX.

OK fundamentals, not a line of business I particularly like, but it is a line of business. Kind of a home town play, for me. The real reason I'm looking at it, though, is simply the price, volume, and chart pattern.



writing on December 13, 2011
There's a clear 1 year wave. That's divided into two roughly 6 month waves, and the last of these is divided into three two month waves. The top of the last of these is ... well, the top of the last 6 month wave was above .3. A recent low a few days ago, was .15. If you can buy now at .15, which is fairly likely, prices are likely to reach .3, and double your money, quite soon. This, however, is not guaranteed.

If, however, you were to buy, say, 100 shares, which would cost $15 (plus commission) - note that you are buying at .15, 15 cents; if you pay more, you are not following my advice - and prices return to the five year high of $4, your shares will be worth $400, 20 times what you paid for them. And they might pay a dividend. Let's say they pay a 5% quarterly dividend. That would be $80 a year - considerably more than what you paid for the shares.

You are building a diversified portfolio of ultra-cheap long term positions. A diversified portfolio has lots of stocks in it. Keeping track of a lot of stocks is a tricky business. You should start thinking about a system for doing so NOW.

THIS POST illustrates the basics of a system. Yes, I'm suggesting tracking your portfolio on Blogger! More generally, though, you will want to maintain a set of notes for each stock, that you can easily check and update every day, and that include charts. This is just one way to do it.

The charts on this page are available to Scottrade account holders. If you have an account, you can insert charts into your blogs or web pages. It's really a wonderful thing. These charts update every time you load the page you've placed them in. If you keep a set of charts on your blog, you always have a way to instantly review the latest action in your stocks: just go to your blog.