Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Friday, January 13, 2006

Hansen Natural (HANS) Does it Again

…Hansen Natural (HANS) has been one of my best holdings over the past eight months. I originally picked up shares last May above $66 before the most recent 2-for-1 split. I told the entire community that “stocks that seem high to one investor may seem low to another”. This wisdom held true as the stock easily moved up through the $60-$100 range within a couple of months. The stock showed some red flags and stalling action near $100, so I sold my position and advised everyone to do the same before the stock dropped out of the $90’s (this was in July, 2005). The stock corrected over the next 14 to 15 weeks as I keep it on my back burner since it didn’t violate any long term moving averages such as the 200-day. It then broke out of this four month base in late October and I again grabbed shares and touted it as a $60-$100 candidate for the second time (since it split 2-for-1).

I placed it back on to the MSW Index on November 5, 2005 at $57.63 and said that it had a very good chance to make a second $60-$100 run this year. Pre-split adjusted, I was buying back into the stock near $115 per share but I still thought it presented a great buying opportunity when looking to the weekly chart. The investors that thought the stock was too high in May at $66 probably thought I was crazy to buy back in at $115 (pre-split adjusted).

Over the past two months, (HANS) has made great strides and has again completed the $60-$100 run with a powerful move today. My physical stop is placed at $89.89 but I am going to raise this stop slightly below $95 so I can guarantee myself a 60% gain minimum. It will remain on the MSW Index until it violates any sell rules or support areas even if I take my profits off the table. Without the split, today’s shares are worth over $200 from my first buy last May above $66 (a total gain of 203% in eight months). I guess the shares were low to some investors even through other less experienced investors thought the stock was too high. I don’t blame them because it was scary buying into a stock that ran up from $5 to $66 before I placed my first position.

FYI: Last Saturday, HANS filled its spot on MSW Index with a closing price of $85.66 and I set a new breakout price of $88.39 from the recent consolidation. It crushed that area this week on above average volume.

I hope many of you have learned to dismiss the idea that “high priced stocks” can’t give you excellent gains in a short period of time because this is completely untrue. If you want to argue, please see HANS and the other $60+ stocks that have made the run on MSW.



Piranha

1 Comments:

At 4:31 PM, Blogger ~*~DANNA~*~ said...

I was just surfing by and wanted to say :: HELLO ... nice blog!!!

 

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