For those of you watching this one, the Sunday NY times ran an article highlighting several cigar stocks. I think this might just be a stock fools should be paying attention to. An out of favor industry among the Wise, good profit margins, and steadily growing earnings and earnings estimates that are more than double the current P/E. Any comments?
You are absolutely correct, it is very foolish! The only problem is that the article was in the NY Times. Too many people have read it and will act on the info. I'll bet there will be some heavy volume in SWR, MPP and CIG today. There may be a flood of order to buy on the open which would bid the price up but a limit order might be filled later in the day at a good price after trading calms down a bit.
Thanks for your reply. I'm glad I'm not the only out here who noticed. Only thing is, it doesn't seem as if anyone really paid too much attention to the NY Times article. SWR was practically flat for the day, CIG was actually down slightly, and MPP and JRJR closed on the upswing, but not by much. I think we've definitely got a few to start paying some attention to for a little bit, but the market hasn't seemed to react that much after what should have been perceived as a positive article. I know this is way off the subject, but if you're familiar with Ballard Power Sytems, that stock (among countless others) took off like a rocket since a positive article appeared about the company in the Times. True, a totally different industry, etc., etc., but the popular press can have that affect. Doesn't seem to be much of it here. We could be on to something. All the better if most people out there haven't cared to notice!
You are correct, there was not nearly as much volume in these stocks as I thought there would be. CIG had 45% more volume then its average daily volume and MPP had almost double, but yesterday morning I thought there would be a flood of buy orders. CIG had its high of 24 3/8 on the open, but its daily price/volume chart looked like a downward stair case from then on. Maybe potential buyers are thinking more along the lines of cigars being just a fad and the regulatory issue is keeping some away too.
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