Down 40% on VICR - should i sell or should I Hold?

Good Morning,

So I bought VICR around November 15 and then Omicron, fed hike discussions, and now Russia happened and the stock tanked 40%

The fundamentals are good, but there has been a lot of insider selling.

Wondering whether I should hold the stock or sell it?

Where do you think the stock will be in six months?

Thanks

 

Oh dear. (1) You bought it at the worst possible time. (2) You didn't exercise stop out. And now you want to know, "what should I do"? I'm afraid none of us knows. Whatever you do or are advised to do is nothing more than a blind guess.

The one thing that seems to apply... is the Rule of Holes. That is, "when you find yourself in a hole, stop digging".

 

The question is ambiguous. Should I sell or hold ... yes/no. Anyway, unless you need the money, I would
hold.

 

Care to explain why? At what point do you let the position go?

 

So you bought at $160 right at the time the markets decided to sell all high P/E stocks. This stock has $60 million in trailing yearly EBITDA and has a market cap of $4.5 billion. I'm surprised it stopped falling at $81.

At least the 50-day SMA is right around the corner at $113. That's your best hope and hopefully the Fed doesn't raise interest rates.

You should have sold on 12/1/2021 when it broke below the 50-day SMA ($140). I always exit on the 50-day for a trade.

 

I'm surprised it stopped falling at $81.

Give it some time... we haven't even begun to start the carnage with raising interest-rates. We're not in any panic (yet). Wait until the race-to-the exits begins.

 

You bought it at a record-high price.

In fact, there are many investors in this forum who use such a strategy
(buy it when it breaks record high).
And if you tell them it is not a good idea, they'd get annoyed.
If you tell them that they should enter at a better lower price,
they'd say we have excellent hindsight.
Some investors claimed this strategy is good.


Should you cut loss?
check your trade plan.
If your trade plan allows a 100% drop in stock price (too big a number actually), then don't cut loss.
if your trade plan doesn't talk about cutting loss,
then stop investing immediately.


will VICR go back to where it belongs at 30 level?

 

Feb. begins tax refund rally, should make it to 110 at least.

 

Tax refund rally? That would mean people actually made money last year.

 

Nope I don't get annoyed. It's a strategy I use. Every stock that is a huge winner has several record highs.

However a part of my strategy doesn't allow me to hold losers in my portfolio. Or hold a stock that that breaks an up trend line. I rarely have a big loss if it's in my control to avoid it. (Gaps are out of my control)

And no I don't buy every stock that makes a new high. I have other filters I run. But one of the criteria is for the stock to have recently made a new 52 week high.