RE: Volume Information and SignalsIt's incredible how many posters on these boards think that every time a stock drops it must be some kind of manipulation or conspiracy. Get real! No one ever says that when the stock is rising. The stock market is not based on manipulation and conspiracies. It is based on earnings growth, balance sheets, outlook, assets and every Joe investor trying to put a valuation on those variables. Then you throw in fear, greed and a whole bunch of traders.
This stock is getting very volatile because the valuation got too high. Volatility in the stock of a really good company attracts even more traders so get used to it.
I really like this story but the valuation has to make sense. I made a lot of money on it last year and sold too early but it was getting over priced. I picked up a few shares again at $32.50 and will look to buy more lower. At the current price it is expensive, perhaps very expensive. Maybe it will always be expensive. Expensive stocks always put you at higher risk. Those willing to hold higher risk stocks shouldn't wine and complain on stockhouse when the stock drops. Expensive stocks make investors nervous and then they put in stop loss orders which accentuates the drops.
The stock has done fabulously well in the last 10 months moving up 174%. This is a combo of strong earnings growth and serious multiple expansion. Logic says that combo cannot happen again in the next 10 months to the same extent so be careful. Good luck Cheers!!!