Q: Greetings,
1) To me it seems counter intuitive to buy a stock like VNP which has experienced such a steep appreciation in a short space of time.
Whatever happened to “reversion to mean” ? Surely this phenomenal rise makes the stock more vulnerable to a sharper pull back?
Or are we looking at a company that has a phenomenal runway and this is just the beginning?
2) Are there dangers making purchases based mostly on momentum? I am worried about “jumping on the bandwagon”? and making a FOMO purchase.
3) At what approximate price do you think the risk reward ratio is more favourable?
4) Is there a way of seeing who is actually buying at the moment? i.e General Public or Institutional or Insiders. Can we draw any conclusions from WHO is mostly buying?
My screen is showing a 4.5% insider ownership but NO recent insider purchases
Many thanks in advance for your sharing your thoughts.
1) To me it seems counter intuitive to buy a stock like VNP which has experienced such a steep appreciation in a short space of time.
Whatever happened to “reversion to mean” ? Surely this phenomenal rise makes the stock more vulnerable to a sharper pull back?
Or are we looking at a company that has a phenomenal runway and this is just the beginning?
2) Are there dangers making purchases based mostly on momentum? I am worried about “jumping on the bandwagon”? and making a FOMO purchase.
3) At what approximate price do you think the risk reward ratio is more favourable?
4) Is there a way of seeing who is actually buying at the moment? i.e General Public or Institutional or Insiders. Can we draw any conclusions from WHO is mostly buying?
My screen is showing a 4.5% insider ownership but NO recent insider purchases
Many thanks in advance for your sharing your thoughts.
5i Research Answer:
1) VNP has increased a lot in the past year (up 56% year-to-date and 270% on a one-year basis),...