Accumulation Time: AMPE, CDXC, MNGA, and NVAX

It’s always a bit of a toss up for me on when to accumulate shares, but I scooped up some nice discounts today on AMPE, CDXC, MNGA, and NVAX, so let’s take a look.

AMPE

AMPE is one penny shy of its historic low. Can it go lower? Sure, it can. Will it? Who knows? But for me, this signals a buy, and I accumulated more shares today (FYI: green price labels represent accumulation – buying – while white labels represent distribution – selling).

CDXC

CDXC is bouncing around along the lower boundary of a long term channel, as you can see on the weekly chart, below. As with all chart patterns, the pattern is valid until it breaks, so I decided to accumulate more shares today in anticipation of price reversing again from the lower channel. And if it doesn’t, and price takes a nosedive? I’ll just add more shares at the next major resistance level…

MNGA

Of the stocks I bought into today, MNGA is probably the biggest question mark. In one sense, I regret opening a position in this stock simply because it doesn’t have a long enough track record (I’m guilty of the same thing with AMPE), but the long-term volatility lured me in, and so here we are. But, since we’re playing the game, let’s play to win, always keeping in mind your risk mitigation strategy (I harp on that a lot, don’t I?). Since the stock’s price is at a historic low level, I bought more shares, but those are the last I’ll buy if it goes down more, at least until a weekly candle closes over the high of the previous one (which often suggests a reversal).

NVAX

Looking at the monthly chart for NVAX, you don’t have to be a charting wizard to see that price is at a very significant support zone. The stock has really been hammered the last few days and a number of folks on StockTwits were wringing their hands in fear about the stock potentially plunging to zero or whatever. Could that happen? Sure, it could. Every stock in the market carries some level of risk, and that’s why ever trader and investor should have a very rigid risk management scheme. For me, I invest in highly volatile stocks over the long term, but I never put more than 5% of my portfolio into any one equity. I’ve had two go bankrupt on me, but my portfolio is still growing.

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