ASSESSMENT ON THE WEEKOn the whole, I'm happy with the week for Nano, as it started to show some real strength and volume pushing for the second time up to the $3.90ish resistance. That being said, we all saw the effects of the past couple of days and the overall thrashing of the broader market. Nano, and of course all stocks, are not immune to these pressures.
But in the midst of these downturns, however temporary, you have to ask yourself what is the nature of the downturn, as the nature dictates two totally different responses.
1) If a stock downturns, and there are NO outside forces at play, then you have to be realistic and look to "something of the company" as the reason. As retail, you may be the last to know what the reason is, but you can see it in the trading activity and this may precipitate a sell order. Always better to get out with a nick than suffer a gash. "Be wrong quickly" is always a good motto, as it keeps you engaged and on your toes.
It's important to note that "something of the company" is NOT specific to whatever timeframe you're working in, from trader to long term investor. If there is something materially wrong, whatever time frame you're in, you need to assess.
2). If a stock downturns as a RESULT of outside forces, and there is nothing materially wrong with the company, then this is completely different than scenario #1, and you may have a very good reason to buy. Most times, external forces are temporary in nature, and once lifted, the stock returns to equillibrium. The only problematic force here that is external is your own emotions, but if you see this scenario for what it is, an opportunity, then the buy potential is there.
It's the emotions that can get in the way, which is a strange phenomenon in the market. If we were in a store, and saw something we really liked, and now it was on sale for 10% off, we might buy it. If it was 30% off, we would be all over it. But stocks are different. The trick here is to accurately assess whether we are talking scenario #1 or scenario #2. As it pertains to the current situation of a mini market meltdown this week due to some bank in California collapsing, meh...that's an outside situation that affected the whole market. Not company specific at all.
In scenario #2, what timeframe you're working in also affects decision making. If you're long term, weeks like this are hiccups that are essentially ignorable. You just hold your way through it, kwowing it will pass and the stock will be moving higher. If you're a trader, outside events could be more impactful and worthy of consideration, if only to attempt to loop around and catch shares cheaper. It's an enticing game, but in reality, one that rarely pans out as hoped for. As a trader, this IS my reality, and I can say it's damn hard to do well. In this stock, I'm not trading it at all, so for me this week is only somewhat of an annoyance.
So with this week being external pressures that brought the stock down, there is a nice opportunity there for those looking to get in. There's also an opportunity there for the traders who might have sold out higher, looking to circle around. For those who are longer term holders, just a blip of annoyance and nothing more.
As for the company, I remain thrilled with progress on all fronts. And I should note too that it's all a matter of perspective regarding how you look at share price. A few weeks back, we were all cheering that it finally broke up about $3.25. Now, at $3.50 we're worried? Not me. Not at all. In my books, just a silly blip and if anything, a nice opportunity to pick up shares.