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Posted: #1
Just my wanted some opinions on a sell option on Avis (CAR)

Have $5k into it @ $1.01 almost up to $1.70 now...was bought as a riskier stock a few months back.  I'm more than willing to sit on it, just curious if I should sell and anticipate a bounce back and then buy back in.

Almost had my dad buy $10k worth of AIG last week sometime when it was around $1...but he wouldn't commit.  Shall I wait for a slight bounce back on this as well...had a limit buy @ $1.20 a few days ago...but hasn't gone back down this week.


Thanks for any opinions.
 
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Posted: #2
I'd go with Avis over AIG personally.


 
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Posted: #3
Quote Originally Posted by wallstreetcappers:

I'd go with Avis over AIG personally.




I'm nowhere near a professional on the markets...but I know more about it than my father.  He's got $15k in TDAmeri...we've made $4k already with a quick buy/sell of BofA last month.  Waiting for a bounce back on a lot of potential buys.

Already own Avis Budget which was bought at $1.01  I guess my question is...Do you think I should sit on this Wall or sell around $2 if it reaches an intra-day high (Currently $1.83)...or just sit on it through a potential bounce back?

I was looking at AIG only if I can buy in around $1.  I just think they've put in too much money for this thing to fail...so at some point it's going be a good stock to own especially if I can buy in low.  Granted I'd only put $5k or so into it as a "Riskier" buy.  Obviously know the risk in this company.
 
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Posted: #4
I'd use a trailing stop..locking in at least a 50% return and lets see what can happen.

A "trailing" stop means you dont let it fall below the point if it falls, and if it goes up, you follow behind it and keep moving up your sell stop point.

So in this case your buy is at 1.01 and I would put a 1.50 stop in my mind..something like that.

With a market cap of only 100M, if they can survive this debt issue the stock could be a 5 bagger plus from your buy point..but protecting the trade with that stop makes sure you dont get burned.
 
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Posted: #5
Wall - The way I've understood it in the past...is if I'm expecting a bounce back down.  I'd put a sell limit of $2...get rid of half my position (Currently have 3850 shares)  So I'm looking at dumping around 1800 shares @ $2  You're saying instead of a sell limit, just put in a trailing stop with a % rather than a $ price?

I still want to have some shares held because I think $1.01 was a fairly good buy in price.  As the economy improves people will start to travel more and these stocks will bounce back.
 
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Posted: #6
Exactly..

I would rather "let it ride" a little locking in that 50% if it retraces.

I dont like the idea of taking profits on a depressed stock which is finding a bottom and maybe moving higher, I would rather roll the dice and put that sell stop in, knowing you are risking 30 cents a share or 1000 bucks but keeping the trade in play.

Maybe you can sell half at 2 sell limit and let half go with the other stop order..

Depending on your risk level, you decide what you can live with and go with it.
 
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Posted: #7
I'm beginning to understand a bit better.  I purchased the stock as a "Riskier" purchase originally.  Understand the financial situation their in.  -11.06 per share is UGLY.  I'm more than willing to let it ride...just don't wanna get rid of all my positions held at $1.01   This is the type of stock that can be up nearly 100% this week...and drop back down just as quick with their daily volume being so low.  $1.88 intra-day high...not sure it will hit $2 today with this volume...would need a big buy to hit it.  So your advice is helping...I'd much rather see this thing soar.
 
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Posted: #8
3850 shares held @ $1.01


Just put in 2 orders...


Trailing stop @ 50% for 1000 shares
Stop Limit @ $2 for 1000 shares.


Holding onto nearly 1/2 my original position.
 
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Posted: #9
I dont mean to nit pick but here is my view on that trade.

You are probably right about that 2 buck level..that said I wouldnt place the sell at 2, either put it at 1.99 or 2.10 or so, this is why.

Lots of little traders place sell limits at key numbers, so there will probably be a big block of stock at 2 bucks and it might be tough to get a fill...and if the stock is strong enough to take the 2 buck level OUT it will go higher than 2. If not and 2 fails, then you are out at 1.99


 
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Posted: #10
Wall - Thanks for the advice.  Trust me, I'd much rather you nit-pick.  I'm still learning the nuances of the market...but what you stated makes perfect sense.  Buyers/Sellers are looking for key numbers...so $2 makes perfect sense.  It either hits $2 and goes slightly above...or stays below.  I was unsure about the $2.10 spot predicted...so canceled my original $2 stop sell...and put in $2.05 for 1000 shares
 
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Posted: #11
$1.99 intra-day high...lets get a solid push here mid-day
 
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Posted: #12
Did you get a fill on your trade? I saw 2.05 as the high?
 
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Posted: #13
I did get a fill on the $2.05

Dumped 1000 shares, and still have the trail stop at 50% off my $1.01 buy-in.  Thanks for all the advice Wall
 
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Posted: #14
Wall - Just checked my TD account...and the limit sell didn't fill on Friday @ $2.05


Just on a whim re-set the limit sell @ $2.20 today and it just got filled but now slightly regretting it after just seeing a intraday @ $2.46
 
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Posted: #15
Well dont worry about it.

Stock doing very well, but you didnt sell it all like you originally thought.

Think of it this way..you were primed to dump it all at 2 bucks early in the thread, and you held onto half and sold half for 20 cents more, which means 200 more bucks than you had hoped.

Now that trailing stop is working for you and protecting the other half.

If they can hang on, I expect this could be a 5-6 buck stock longer term..maybe higher.
 
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Posted: #16
Ya, I don't think we'll be seeing the $18 range again anytime soon...but purchased it as a riskier buy anyway...just waiting for the economy and travel industry to turn around...and I may be able to get a 500-1000% ROI


Almost bought into AIG as riskier purchase the other day when it hit $1.17 think long-term that could be a 200-500% return with all the money we're throwing into it.

Really kicking myself for selling BAC..I believe my original buy-in was like $5 in change and dumped it over $7...and almost bought back in @ $7 the other day...now gotta hope for 1 last bounce back from it.


 
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Posted: #17
check the action in ETFC (E-trade)
 
 
 
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Posted: #18
Rat,

DRYS had a similar daily chart...10% intra day turns from top to bottom.

Market all over the place, reminds me of summer trading.
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