Opinion Requested

CalTrade

Junior member
25 3
I recently bought stock in Indigo Books and Music. Here is the chart: https://markets.businessinsider.com/stocks/idgbf-stock

On Feb 23rd, I bought 90 shares at 4.45. It is now at 3.90. I am wondering if you could have a look at the chart and let me know if you think I should hold on to this one.

To be brutally truthful, I bought this stock based on impulse. (That I have pledged to stop doing). My though pattern went something like this:

Let me take a peek at the market. Oh..Indigo- I recognize that name. I buy books there from time to time. They sell e-books too, so it's online as well. the name's been around forever. Also known as Chapters. I think i'll buy som,e./ it's a strong name. it may dip, but I'm sure it has staying power. And so i boght it. I should have done some technical analysis and fundamental analysis, instead of a cursory drive by analysis ;-(

But...seeing that i am where I am, any thoughts on whether to keep it or not?

Thanks so much for your time and expertise. I realize there are no guarantees. Just looking for others' opinions.

Francis
 

MasterOfCoin

Experienced member
1,228 478
I recently bought stock in Indigo Books and Music. Here is the chart: https://markets.businessinsider.com/stocks/idgbf-stock

On Feb 23rd, I bought 90 shares at 4.45. It is now at 3.90. I am wondering if you could have a look at the chart and let me know if you think I should hold on to this one.

To be brutally truthful, I bought this stock based on impulse. (That I have pledged to stop doing). My though pattern went something like this:

Let me take a peek at the market. Oh..Indigo- I recognize that name. I buy books there from time to time. They sell e-books too, so it's online as well. the name's been around forever. Also known as Chapters. I think i'll buy som,e./ it's a strong name. it may dip, but I'm sure it has staying power. And so i boght it. I should have done some technical analysis and fundamental analysis, instead of a cursory drive by analysis ;-(

But...seeing that i am where I am, any thoughts on whether to keep it or not?

Thanks so much for your time and expertise. I realize there are no guarantees. Just looking for others' opinions.

Francis
A quick look reveals:

Dominant National Bookstore Chain, clobbered by Pandemic.

Hasn't paid a dividend since 2013.

Has expansion plans, but will be significantly impacted by any extended lockdown restrictions.

Online part of business doing well for the same reason.

Hold, wait and see.

10 mins research saves a lot of angst.

;)
 

CalTrade

Junior member
25 3
Thank-you Master of Coin. I'm actually surprised that paper books have survived at all in the f=digutal age, but I guess there is somethign about them. The Indigo stores tend to offer a nice shopping environment, so maybe that's part of it. i think you're right to hold this one. Thanks for the insights.
 
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1nvest

Well-known member
304 108
I again take a slightly different approach to MOC (nothing personal). technically its in an uptrend (for my criteria), so only for that reason would i too say hold. however, and if you look at the charts
look how thinly this is traded. if this drops, you can lose 20% without being able to do a thing about it. ive highlighted very choice examples

I would look at improving your criteria to invest in a stock. a minimum volume is one

we're seeing drops in sentiment at the moment, and any sign of weakness is being exposed.

I wish you the best of luck, but i would honestly revise why and where you enter
the entry might have been at 2, or at 2.8 (for me of course)
you entered at 4.45 yet the stock never got there. that's how much spread your risking, another reason to stick to larger cap. there are hundreds and hundreds of good quality, rising earning stocks and there is loads of time. paper trade. get good at timing your entry

I hope this pops for you though, and i hope im wrong

1614900755702.png
 

CalTrade

Junior member
25 3
Thank-you. I am starting to include at the volume variable and how important it is. If I am understanding it, volume should be at healthy rate.If it is lower than average, or a lot lower than average, it means there is little interest in trading there stock- whine is not a good thing if you're relying on trades to increase your rate of return.
 
 
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