The stock had been trading for $100 for months, then bad things happened to Rectangles R Us. It fell to $82, sat there three weeks, and then hovered at $65/share, where it traded at only a dozen turns times earnings. At this level, it magically seemed like the stock could go no lower, despite continued bad news flowing from Rectangle, which was being assaulted by Soft Corners. This $65 is the accumulation area at which buyside analysists and portfolio managers decided, either on a fundamental and/or technical basis, that this was the price at which to buy the stock and hold it, because eventually, from $65 as a base cost, the belief was that investors would see a very nice return from here.
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Finance: What are Limit Order, Sell Limi...7 Views
Finance a la shmoop what is a limit order? you want to sell a thousand shares
of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]
been trading wildly between $15 and $25 a share you don't want to feel like a
moron for having sold them at fifteen bucks when six weeks later they kissed
25 with tongue so what do you do well you put in a limit order that is you put
a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]
those shares will simply sit in your account unsold maybe forever until
somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]
dollars or more for the shares where you have a minimum price limit of 25 bucks a
share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]
Sargent Electric is just a place you don't want to go
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