Several Discretionary Traders Buy When Stock Declines – (AMD, ADNC, WCRX, TNGO, LF)

  on Sep 10,2012 Posted in Finance ,Investment Ideas
 
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It is very difficult to prepare yourself to buy something that is losing money particularly in these times. The unforeseen fact is that several discretionary traders on trading desks across the universe subscribe to the idea of not following prices higher but buying when prices go down. These traders many times are likely to scale into trades. And while many of you have seen this tactic work in bullish markets, you might also seen it destroy trading desks in bearish markets because no one has unlimited capital.

In experiencing these events, traders missed distinguishing between markets shifts in volatility. Relative Strength Index Strategy works well when the security has had a pull back or has experienced some mean reversion. Analysts recommend to buy when the RSI value crosses above the oversold line (30) and sell when the RSI crosses below the overbought line (70).

Advanced Micro Devices, Inc (NYSE:AMD) currently has an RSI of 26.45. This year, the company has a year-to-date performance down -36.11%. The stock, as of the last close, traded up 0.58% from its 52 week lows and was 58.68% behind its 52 week highs.

The latest closing price was -43.11% down from the SMA200 while the distance from the SMA 50 and the SMA 20 was -22.03% and -12.88% respectively. AMD operates as a semiconductor company worldwide.

Audience Inc (NASDAQ:ADNC) provides intelligent voice and audio solutions for mobile devices worldwide. The RSI of Audience Inc is at 15.23. The stock’s 2012 performance has remained down at -65.50%.

Its price, as of the latest close, was -54.46% down from the 52 week low and was -70.53% below the 52 week high. The stock’s latest closing price was -63.68% down from the average 200 day price while it kept its distance from the SMA 50 at -63.27% and -62.28% compared with the SMA 20.

Warner Chilcott Plc (NASDAQ:WCRX)’s RSI reading has hit 44.35. The company so far in this year moved up +11.34% and its monthly performance stands at +1.82%.

The stock was up 30.64% compared with 52 week lows and was 27.64% below 52 week highs. Its latest closing price was -2.44% down from the average-price of 200 days while it kept the distance from the SMA 50 at -4.19% and -3.20% compared with the SMA 20. WCRX a specialty pharmaceutical company.

Tangoe Inc (NASDAQ:TNGO) provides communications lifecycle management software and services primarily to large and medium-sized businesses, and other organizations worldwide. Tangoe Inc’s RSI is now at 27.41.The stock has shown a downtrend of -7.21% this year with a monthly performance of -28.55% and a 3-month performance down -29.50%.

Its latest closing price was down -21.82% from an average-price of 200 days while it maintained a distance from SMA 50 at -28.20% and -25.23% compared with the SMA 20. Its shares were up 35.97% compared with 52 week lows and was 38.00% below 52 week highs.

LeapFrog Enterprises, Inc (NYSE:LF) has a RSI reading of 26.03. Year-to-date performance of the stock stands at +63.69% and fell -8.50% in last three months and +197.08% in the previous twelve months.

Its price, as of the latest close, was 208.08% up from its 52 week low and was 25.49% below its 52 week high. Its latest closing price was +8.08% up from the average-price of 200 days while it stayed away from the SMA 50 at -16.16% and -17.57% compared with the SMA 20. LF designs, develops, and markets technology-based learning products and related proprietary content for children worldwide.

Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.

 



 

One Response to “Several Discretionary Traders Buy When Stock Declines – (AMD, ADNC, WCRX, TNGO, LF)”

  1. Richard J. Marini says:

    TNGO has recently been exposed as a fraud.  They are nothing more then a pump and dump / ponzi scheme.   They’ve been using investors money to acquire other companies and then claim that as their revenue and then use that to go to other investors and get more money and then the cycle continues. Their model has never been, is not now, nor ever will be profitable.  I’m a former employee of theirs.  I was one of the original engineers that built and designed the open-source based distributed TEM billingIT platform which was high volume scalable platform that was VERY profitable for billingIT.  After being acquired by TNGO they were profitable for a initial short period until their model took over our business at which point it got sucked into the red.  So they have to keep acquiring companies to show any gain which just disappears as soon as they take it over.  These guys are a bunch of crooks and should be in a jail cell right next to Madoff (another crook I’ve previously worked for as well).  Anyway, read the copperfield research and street sweeper articles with regards to TGNO they expose how TNGO are cooking their books and how these guys have a history and fraudulent past.

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